Zavarovalnica Triglav

Investor Presentation • Apr 11, 2023

Building a Safer Future.

2022 Results

Investor Presentation

31 March 2023

Disclaimer

The information, statements or data contained herein 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

2022 Highlights 2022 Results

Financials & Investments

IFRS 17 Market Update

Appendix

Performance by Insurance Markets

Investment Portfolios by Insurance Segments

2022 Highlights

5

▪ Growth in business volume. Higher frequency and severity of claims. Several one-offs: inflation, financial markets,

▪ Traditionally prudent reserving. Claims provisions closer to best estimate at year

88.9% in 2021

88.1%

• Effects of higher frequency of claims and inflation compensated by positive run-off and partial release of of reserves.
• Expense ratio: 28.7% (up by 1.2 pp y-o-y)
• Claims ratio: 59.4% (down by 2.0 pp y-o-y)

2022 Results Confirm Robustness and Resilience of Our Business Model

Agenda: 2022 Highlights / 2022 Results / Performance by Markets / IFRS 17 Market Update

Dominant Market Position, Strategic Focus on Profitable Growth

Independent insurance and financial group with dominant market position in Adria region

Market share and position (2022)
	Adria Region (2021)	21.6%	st 1
	Slovenia	38.9%	st 1
	Croatia	5.6%	th 7
	Serbia (9M 2022)	7.3%	th 5
	Montenegro	37.8%	st 1
	Bosnia and Herz.	9.4%	rd 3
	North Macedonia	14.7%	rd 3

Insurance markets in Adria region, internationally through reinsurance and partnerships with insurance brokerage and agency companies

7

Premium Growth, Favourable CoR ¹

Continued focus on growth, development activities and improved client-centric approach.

¹ Planned figures for 2023 have been prepared in accordance with current applicable IFRS. Transition effects of IFRS 9/17 not included.

Planned figures for 2023 are based on outlook, expectations about events and circumstances, and forecasts available to the Company at time of drafting plan. Actual results, performance and events may significantly deviate from those taken into account in plan.

Agenda: 2022 Highlights / 2022 Results / Performance by Markets / IFRS 17 Market Update

Profitable and Safe Operations ¹

¹Planned figures for 2023 have been prepared in accordance with current applicable IFRS.

Planned figures for 2023 are based on outlook, expectations about events and circumstances, and forecasts available to Company at time of drafting plan. Actual results, performance and events may significantly deviate from those taken into account in plan.

Agenda: 2022 Highlights / 2022 Results / Performance by Markets / IFRS 17 Market Update

Solvency Position

Agenda: 2022 Highlights / 2022 Results / Performance by Markets / IFRS 17 Market Update

> 250%	Surplus capital adequacy	Possibility of a more aggressive growth of business volume, assessment of potential changes in the business strategy
200 - 250%	Target capital adequacy	Regular performance of risk management activities
150 - 200%	Sub-optimum level of capital adequacy	Analyzing possible medium and long term measures to improve capital adequacy and emphasized monitoring of risks
130 - 150%	Warning level of capital adequacy	Implementation of measures to improve capital adequacy
< 130%	Insufficient capital adequacy

Disciplined Risk and Capital Management

© Triglav Group: 2021 Results Investor Presentation

11

Resilience And Financial Strength

Agenda: 2022 Highlights / 2022 Results / Performance by Markets / IFRS 17 Market Update

Decrease primarily due to lower fair value reserve and high dividend payment in 2022.

Consistent Implementation of Strategic Development Activities

Triglav´s Group upgraded strategy to 2025 reflects goals of further growth and development, client-centric approach and profitable and safe operations. Some achievements in 2022:

▪ Higher client satisfaction score (NPS 77%, up by 4.0 pp y-o-y).

▪ Further digital onboarding of clients and incorporation of digital identity into Triglav komplet - client loyalty bonus system.

▪ Business ecosystems upgraded with new services. Assistance, sales and claims procedures continued to be digitalized and automated. Implementation of advanced analytics and artificial intelligence in client service processes.

▪ Focus on high responsiveness, reliability and transparency in all communication channels with clients (central entry communication point for clients; virtual assistant). Upgraded websites of all Group insurance companies.

▪ Exceeded planned indicator of employee satisfaction and engagement. Available option of working from home. Further promotion of teamwork, intergenerational cooperation, healthy lifestyle and identification of promising staff. Launched hybrid workspace pilot project (flexible space).

12

Agenda: 2022 Highlights / 2022 Results / Performance by Markets / IFRS 17 Market Update

Attractive & Sustainable Dividend Policy

In 2022: MB & SB proposal of EUR 2.5 DPS (51% dividend payout). AGM scheduled to take place on 6 June 2023.

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.

14

Sustainability – our E, S & G

Sustainable development milestones of Triglav Group

Triglav aims to play leading role in integrating best global ESG practices into its operations in Adria region.

Our sustainable ambitions for 2025 are divided into four key areas:

• insurance and AM
• business processes
• stakeholder engagement
• effective CG

More information on our website https://www.triglav.eu/en/

15

2022	2021	2020	Index
			2022/2021

Environmental aspects

• Carbon footprint (tonnes of CO2 equivalent; Scope 1 & 2; location-based method ) 10,072 11,299 10,602 89
• Scope 1 and 2 carbon footprint per employee (tonnes of CO2 equivalent) 1.90 2.09 1.95 91
• Share of electricity consumption from renewable sources (%) 62.6 60.1 2.7 104
• Investments in social impact, green and sustainable bonds (in EUR M) 222.9 204.5 104.3 109

Social aspects

-

• Employee turnover (number of leavers/average number of employees; %) 11.6 13.2 11.7 88

Governance aspects

				2022/2021
Environmental aspects
▪ Carbon footprint (tonnes of CO2 equivalent; Scope 1 & 2; location-based method )	10,072	11,299	10,602	89
▪ Scope 1 and 2 carbon footprint per employee (tonnes of CO2 equivalent)	1.90	2.09	1.95	91
▪ Share of electricity consumption from renewable sources (%)	62.6	60.1	2.7	104
▪ Investments in social impact, green and sustainable bonds (in EUR M)	222.9	204.5	104.3	109
Social aspects
▪ Client satisfaction of Triglav Group (NPS)	77	73		106
▪ Employee satisfaction (ORVI)	4.00	4.00	3.99	100
▪ Women employees to total employees ratio (%)	54.7	53.9	53.5	102
▪ Employee turnover (number of leavers/average number of employees; %)	11.6	13.2	11.7	88
▪ Average number of training hours per employee	33	31	24	107
Governance aspects
▪ Proportion of women in MB and SB (%)	23.6	20.9	21.0	113
▪ Proportion of women at I. management level under MB (%)	45.1	45.3	45.8	100
▪ President of MB salary to average employee salary ratio (factor x)	5	5	5	100
▪ Equal opportunities policy, Anti-corruption policy, Employee protection/Whistleblower protection policy	YES	YES	YES
▪ Internationally renowned audit firm (Big 4)	YES	YES	YES

• Proportion of women at I. management level under MB (%) 45.1 45.3 45.8 100
• President of MB salary to average employee salary ratio (factor x) 5 5 5 100
• Equal opportunities policy, Anti-corruption policy, Employee protection/Whistleblower protection policy

Some ESG Aspects of Our Operations

2022 Results Financials & Investments

2022 Total Revenue Components

(in €, growth y-o-y)

GWP	1,479.6 (+9%)
Other insurance income	59.9 (+23%)
Other income	59.8 (+12%)
Total	1,599.3 (+10%)

GWP growth. Realized gains in Group´s realestate portfolios and results of AM are major drivers of other income growth.

GWP Growth In All Insurance Segments

Agenda: 2022 Highlights / 2022 Results / Performance by Markets / IFRS 17 Market Update

(in €, growth y-o-y)

	Non-life	1,009.2 (+12%)
	Life & Pensions	266.2 (+6%)
	Health	204.2 (+3%)
Total		1,479.6 (+9%)

Agenda: 2022 Highlights / 2022 Results / Performance by Markets / IFRS 17 Market Update

Well Balanced GWP Structure

Well balanced structure of GWP

Constant upgrading product /service mix

Omni-channel sales approach

Data for 2022, change y-o-y

Agenda: 2022 Highlights / 2022 Results / Performance by Markets / IFRS 17 Market Update

Property 32.6% (+0.7 pp)

Own sales network 64.0% (+0.3 pp)

Claims Experience Under Influence of Higher Frequency & Inflation

21

Claims experience influenced by GWP growth, end of last year's pandemic - related restrictions, inflation in prices of materials and services and major CAT loss events.

22

Agenda: 2022 Highlights / 2022 Results / Performance by Markets / IFRS 17 Market Update

Continued Underwriting Discipline

High-Quality Investment Portfolio

Asset Allocation¹ Debt Instruments¹ by Rating and by Type of Issuer

Total as at 31 Dec 2022: € 2,699 M (-11% compare with 2021 YE) Total as at 31 Dec 2022: € 2,236 M (-11% compare with 2021 YE)

¹ Unit-linked insurance contract investments excluded

25

2022 Performance at a Glance

			In € million
	2022	2021	2020	Index 2022/2021	Index 2022/2020
Total revenue	1,599.3	1,455.1	1,318.4	110	121
Gross written premium	1,479.6	1,353.0	1,233.8	109	120
Net premium income	1,189.9	1,119.8	1,066.8	106	112
Gross claims paid	832.2	736.6	697.4	113	119
Net claims incurred	746.7	715.0	683.6	104	109
Gross operating costs	374.9	333.4	306.7	112	122
Profit before tax	134.5	132.6	90.9	101	148
Net profit	110.2	113.0	73.7	98	150
Net claims ratio NL & Health	59.4%	61.4%	63.1%
Expense ratio NL & Health	28.7%	27.5%	28.1%
Combined ratio NL & Health	88.1%	88.9%	91.2%
Gross insurance technical provisions	3,100.0	3,198.7	3,033.2	97	102
Total equity	752.8	933.0	870.2	81	87
Number of employees	5,306	5.264	5.316	101	100

Structure of Profit Before Tax of Triglav Group

Consolidated PBT from (in € M; % y-o-y)	Non-life	Life & Pen.	Health	TOTAL
Underwriting activities (1)	86.8	15.9	3.0	105.7
	(+9%)	(+18%)	(-58%)	(+5%)
Investment activities net of	17.2	0.6	-1.0	16.9
investment guarantees (2)	(-1%)	(-90%)	(in 2021 €0.8M)	(-31%)
INSURANCE	104.0	16.6	2.0	122.6
(1+2)	(+7%)	(-16%)	(-75%)	(-2%)
NON-INSURANCE (3)				12.0 (+54%)
TOTAL PBT (1+2+3)				134.5 (+1%)

Robust underwriting profitability. GWP growth. Influence of realised & unrealised investment gains and losses through P&L, impairments and LAT releases.

Realized gains in Group´s real-estate portfolios and results of AM.

Appendix

Performance by Insurance Markets

Structure of Investment Portfolios by Insurance Segments

Macroeconomic Overview of Adria Region

Credit rating		Slovenia		Croatia		Serbia		Montenegro		Bosnia and Herzegovina		North Macedonia
S&P		AA-/Stable		BBB+/Stable		BB+/Stable		B/Stable		B/Positive	BB-/Stable
Moodys		A3/Stable	Baa2/Stable		Ba2/Stable		B1/Stable			B3/Stable	-
Fitch		A/Stable		BBB+/Stable		BB+/Stable		-		-		BB+/Negative
Economic Indicators		Slovenia		Croatia		Serbia		Montenegro		Bosnia and Herzegovina		North Macedonia		EU
	2022	2023 Outlook	2022	2023 Outlook	2022	2023 Outlook	2022	2023 Outlook	2022	2023 Outlook	2022	2023 Outlook	2022	2023 Outlook
GDP growth (in %)	5.7	1.7	5.9	3.5	3.5	2.7	7.2	2.5	2.5	2.0	2.7	3.0	3.2	0.7
GDP per capita (in 1,000 USD)	29.5	30.8	17.3	18.5	9.2	10.1	9.9	10.7	6.8	7.1	6.8	7.3	54.0	56.2
Inflation rate (in %)	8.9	5.1	9.8	5.5	11.5	8.3	12.8	9.2	10.5	4.5	10.6	4.5	9.2	6.8
Population (in M)	2.1	2.1	4.0	4.0	6.8	6.8	0.6	0.6	3.5	3.5	2.1	2.1	443.6	444.3

Source: IMF, Outlook October 2022. Credit ratings as of February 2023

GDP Growth and Low Insurance Density Key Growth Drivers

NON-LIFE & HEALTH LIFE & PENSIONS

NON-LIFE & HEALTH LIFE

NON-LIFE & HEALTH LIFE

NON-LIFE & HEALTH LIFE

NON-LIFE & HEALTH LIFE & PENSIONS

-

NON-LIFE & HEALTH LIFE & PENSIONS

36

Non-life and Health Investment Portfolios (2022 YE)

Agenda: 2022 Highlights / 2022 Results / Investment Portfolios by Insurance Segments / IFRS 17 Market Update

37

Life and Pensions Investment Portfolios (2022 YE; Unit-Linked Investments Excluded)

Agenda: 2022 Highlights / 2022 Results / Investment Portfolios by Insurance Segments / IFRS 17 Market Update

^© Triglav Group Investor Presentation / 2022 Results / 31 March 2023

IFRS 17 Market Update

Key Messages

Non-Life Insurance Business

10% Premium Allocation Approach (PAA) General Measurement Model (GMM)*

Non-life business portfolio structure by Measurement models as at 1 January 2022

8% Present Value of Future Cash Flows Risk Adjustment

Liability for Incurred Claims (LIC) structure

as at 1 January 2022

Majority of portfolio measured under PAA. Long-term direct business measured under GMM.

Full Retrospective approach used for policies issued from 2017. Modified Retrospective approach used for policies issued before 2016.

▪ Measurement of Non-life portfolio primarily based on simplified approach (PAA) keeping liabilities valuation more similar to SII. Revenue comparable with

• premium earning under IFRS 4.
• IFRS 4 reserves replaced with best estimate valuation with explicit allowance for uncertainty (Risk Adjustment).
• Combined ratio to remain as primary KPI, adapted to IFRS 17 principles.

*Ratios calculated on IFRS 17 insurance contract liability at transition

Life Insurance Business

41

*Ratios calculated on IFRS 17 insurance contract liability at transition

Life Business Portfolio Structure by Measurement Models* as at 1 January 2022

CSM Structure by Transition Approach

as at 1 January 2022

▪ Actuarial assumption changes in each period are spread over lifetime of contract for GMM and VFA products through CSM. Changes and variances in economic

• Future profits are driven by release of CSM (Contractual Service Margin) and Risk Adjustment. Profits will be more predictable and transparent.
• assumptions in each period are spread over time for VFA products through CSM.
• investment components.

▪ Insurance service result will be shown separately from insurance finance income or expenses. Insurance revenue and insurance service expenses shown net of

• General Measurement Model (GMM)
• Variable Fee Approach (VFA)
• IFRS 9

• Modified Retrospective Approach (MRA)
• Full Retrospective approach (FRA)
• Fair Value Approach (FVA)

FVA used for legacy portfolios issued before 2007. MRA used for policies issued from 2007 to 2015. FRA used for policies issued from 2016.

Unit-Linked business measured under VFA. Pensions without significant insurance risk measured as financial contracts under IFRS 9. Rest of portfolio including traditional business measured under GMM.

Active Reinsurance Business

as at 1 January 2022

▪ Revenue lower compared to IFRS 4 earned premium due to deduction of ceding commission. Reinsurance revenue and reinsurance service expenses shown net of

• investment components. Investment component recognized for sliding scale commission and profit commission.
• valuation.

▪ IFRS 4 reserves replaced with best estimate valuation with explicit allowance for uncertainty (Risk Adjustment). Risk of non-performance of reinsurer included in the

Majority of AFS investments classified as FVOCI (Fair Value through Other Comprehensive Income).

HTM investments classified as AC (amortized cost).

Limited impact of instruments not complying with SPPI test (Solely Payment of Principal and Investment test). Limited impact from recognition of Expected Credit Loss.

Investments covering Unit-linked classified as FVTPL.

Both FVOCI w/o recycling and FVTPL will be used for equity investments adding some volatility to reported net result.

No significant impact on P&L at transition.

Reclassification of part of Equity investments from AFS to FVTPL at transition results in transfer from OCI to retained earnings with some tax effects.

Investment Portfolio under IFRS 9

Investment Portfolio (Unit-linked insurance contract investments excluded) as at 1 January 2022

Shareholders's Equity

* Impact of change in measurement of liabilities under IFRS 4 and IFRS 17

-129	1.018	Increase in shareholder's equity is mainly driven by decrease of prudence level included in liabilities for incurred claims for Non-Life business under IFRS 4. Very limited impact of IFRS 9 on value of assets. CSM (contractual service margin) is established mainly for Life business and represents unearned profits that will be recognized in future.
CSM	IFRS 9/IFRS 17 Equity	All figures may be subject to changes due to subsequent adjustments of methodologies. Effects at implementation date 1 January 2023 will be materially different due to 2022 P&L effects and changes in equity.

Bridge of changes from IFRS 4/IAS 39 to IFRS 9/IFRS 17 Shareholder's equity as at 1 January 2022

© Triglav Group Investor Presentation / 2022 Results / 31 March 2023

Key Accounting Choices and Metrics

Accounting Choices	Options Adopted	Rationale
Discount rates	Bottom-up approach (risk free rates + illiquidity premium)	Better alignment with Solvency II
Changes in discount rates (Goal: Consistent asset & liability approach of OCI option)	Through P&L for Unit – Linked products Through OCI for other products	Consistent asset & liability approach for OCI option
Risk adjustment	P&C Business: VaR method Life Business: Cost of Capital method	Methods chosen to appropriately reflect uncertainty for non-financial risks given available data and nature of P&C and life business.
Risk adjustment quantile	P&C gross business: 85th quantile P&C reinsurance business: 65th to 75th quantile Life business: 95th th 1 year quantile which results in 65 run-off quantile	Quantile choice reflecting risk appetite of Triglav Group
Fair value investments	FVOCI for majority of AFS investments FVTPL for assets covering Unit-Linked liabilities Both FVOCI and FVTPL options used for listed equity investments	Consistent approach between asset and liability side to mitigate P&L volatility

Impact of IFRS 9/17 on Existing KPIs

KPI	Comment
Return on Equity	Calculation based on adjusted equity (excluding AOCI). Impacted due to change in equity base
Return on Investment Portfolio	No material impacts on ROI expected. Part of ROI reflected through OCI.
Net Income	Similar level of net income for Non-Life business. Higher stability of earnings for Life Non-Life business is mostly measured under PAA which is conceptually similar to current IFRS CSM release ensures higher stability of earnings for Life
Combined Ratio, Loss Ratio and Expense Ratio	Calculated on the basis of Insurance Revenue with allowance for Risk Adjustment
Gross Written Premium	GWP will remain one of our main KPIs despite not being presented under IFRS 17

Non-Life business is mostly measured under PAA which is conceptually similar to current IFRS CSM release ensures higher stability of earnings for Life

Exemplary New KPIs

KPI	Comment
Contractual Service Margin	Unearned profit that will be released in future One of key metrics for long-term products, especially for Life business
New Business Contractual Service Margin	New way of measuring profitability of contracts used primarily for Life business
Contractual Service Margin Sustainability	We will measure how NB CSM is replacing CSM released from existing business
Insurance Revenue	Reflecting revenue from providing insurance services Net of investment components, non attributable expenses and financial effects
Attributable Expenses Ratio	Non attributable expenses are not included in insurance service result

Ratio of attributable expenses to total expenses will reflect expenses included in insurance service result

Agenda: 2022 Highlights / 2022 Results / Performance by Markets / IFRS 17 Market Update

Key Acronyms Used Throughout Presentation

AC	Amortized Cost	MRA	Modified Retrospective Approach
AOCI	Accumulated Other Comprehensive Income	OCI	Other Comprehensive Income
FRA	Fully Retrospective Approach	PAA	Premium Allocation Aproach
FVA	Fair Value Approach	PVFCF	Present Value of Future Cash Flows
FVOCI	Fair Value through Other Comprehensive Income	RA	Risk Adjustment
FVTPL	Fair Value through Profit and Loss	SPPI	Solely Payment of Principal and Investment test
GMM	General Measurement Model	VFA	Variable Free Approach
LIC	Liability for Incurred Claims

Modified Retrospective Approach
Other Comprehensive Income
Premium Allocation Aproach
Present Value of Future Cash Flows
Risk Adjustment
Solely Payment of Principal and Investment test
Variable Free Approach

Financial & IR 2023 Calendar

The actual dates and IR activities may differ from above stated.

Planned date	Type of announcement/IR event
3 Mar 2023	Preliminary key figures 2022
6 Mar 2023	2022 Triglav's Earnings Call (online)
22 Mar 2023	Ljubljana Stock Exchange Webinar: Slovenian Listed Companies Online
31 Mar 2023	Audited annual report for 2022
21 Apr 2023	Convocation Notice of Gen. Meeting of Shareholders on distribution of profit
30 May 2023	Ljubljana Stock Exchange Conference for retail investors: Trade on the Stock Exchange
31 May 2023	Q1 2023 Results & Earnings Call (online, TBC)
1 - 2 Jun 2023	CEE Investment Opportunities by LJSE & ZSE (Zagreb)
6 Jun 2023	General Meeting of Shareholders and notice of its resolutions
31 Aug 2023	H1 2023 Report & Earnings Call (TBC)
5 Sept 2023	H1 2023 Ljubljana Stock Exchange Webinar: Slovenian Listed Companies Online
24 Oct 2023	Ljubljana Stock Exchange Conference for reatil investors: Trade on Stock Exchange Vol.2
30 Nov 2023	9M 2023 Results & Earnings Call (TBC)
5 Dec 2023	CEE Investment Opportunities by LJSE & ZSE (Ljubljana)

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

For more information please contact: Investor Relations Department

Helena Ulaga Kitek, Head of IR E-mail: investor.relations@triglav.si

Website: www.triglav.eu