Zavarovalnica Triglav

Investor Presentation • Nov 18, 2021

Triglav Group

Building a Safer Future.

9M 2021 Results and 2022 Outlook

November, 2021

Investor Presentation

Disclaimer

The information, statements or data contained herein has 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

9M 2021 Results

Financials & Investments

Appendix

9M 2021 Performance by Markets

2022 Outlook

About Triglav Group

9M 2021 Results Financials & Investments

9M 2021 Key Financials

G R O S S W R I T T E N P R E M I U M P R O F I T B E F O R E TA X CO M B I N E D R AT I O N O N- L I F E

Up by 48% y-o-y Up by 28% compare to 9M 2019

€ 1,056.2M

SLOVENIA	+8%
OTHER MARKETS	+16%
Non-life	+12%
Life & Pensions	+9%
Health	+1%

€ 92.1M

Strong underwriting profitability and solid performance of non-insurance companies, negative effect of continuation of low interest rates. Insurance technical results additionally positively influenced by relatively lower frequency of claims and favourable development of claims provisions formed in past years.

91.4% in 9M 2020

89.3%

Favourable CoR NL due to improved net claims ratio (down from 64.3% in 9M 2020 to 60.6% in 9M 2021).

Up by 10% y-o-y Up by 17% compare to 9M 2019

Increased Profit Guidance for 2021

Profit before tax (in €M)

2021 PBT estimate is revised to between € 115 and 125M, taking into account business conditions anticipated until end of 2021.

9M 2021 Highlights

9M 2021 performance	PBT up by 48% y-o-y. GWP up by 10% y-o-y. Good capital position within the target level of 200–250%. Annual profit guidance increased.	Long-term stable and profitable operations & greater value of Triglav Group.
In 2021 dividend paid	After fulfillment of this year's pandemic-related requirements of insurance regulator, Triglav again implemented dividend policy with dividend payment.	Attractive and sustainable dividend policy.
"A" credit rating	"A" credit rating with a stable medium-term outlook re-affirmed by both credit rating agencies S&P Global Ratings and AM Best.	Standalone "A" credit rating assigned by renowned rating agency.
Innovation & Development	Redesign and launch of new products & assistance services (focus on life and health insurance products, also other e.g. pet insurance).	Client focus.
Growth	Consistently increasing share of subsidiaries'GWP outside Slovenia. Cross-border insurance services, partnerships expanded from Greece, Italy, Norway and the Netherlands to Poland and Denmark.	Long-term focus on existing markets. New business models for entering markets outside region.
ESG	Wide range of activities, aimed at further integration of sustainability risks and opportunities into Triglav' business, compliance with SFDR and improving ESG reporting.	Triglav's mission: We build a safer future.
Corporate Governance	Appointment of new members of SB by AGM due to expiration of term of office of existing members.	Focus on high level of corporate governance.

9M 2021 Performance t a Glance

			In € million
	9M 2021	9M 2020	9M 2019	Index 2021/2020	Index 2021/2019
Gross written premium	1,056.2	960.9	905.5	110	117
Net premium income	827.5	791.1	751.4	105	110
Gross claims paid	521.6	505.0	505.5	103	103
Net claims incurred	528.1	510.6	488.4	103	108
Gross operating costs	245.4	222.3	200.1	110	111
Profit before tax	92.1	62.4	72.0	148	128
Net profit	75.2	50.8	59.1	148	127
Expense ratio	28.8%	27.1%	28.1%
Net claims ratio	60.6%	64.3%	63.2%
Combined ratio	89.3%	91.4%	91.3%
	9M 2021	2020 YE	Index 9M 2021/2020 YE
Gross insurance technical provisions	3,235.7	3,033.2	107
Total equity	900.4	870.2	103
Number of employees	5,237	5,316	99

Structure of Profit Before Tax of Triglav Group

Consolidated PBT from (in € M):	Non-life	Life & Pen.	Health	TOTAL	9M 2021 y-o-y	Strong underwriting profitability. GWP growth. Favourable claims experience, favourable development of claims provisions (formed in previous periods and
Underwriting activities (1)	55.2	10.6	9.2	75.0	+24%	during pandemic period) and higher net premium income in Non-life. In Health formation of lower other provisions y-o-y.
Investment activities net of investment guarantees (2)	10.8	-0.6	0.4	10.6	€-0.2M In 9M 2020	Formation of less additional provisions in Life & Pensions y-o-y. Lower regular
INSURANCE (1+2)	66.0	10.0	9.6	85.6	+42%	interest income and realized capital gains.
9M 2021 y-o-y	+25%	€-0.4M In 9M 2020	+25%
NON-INSURANCE* (3)				6.5	+190%	Solid results of non-insurance business (results of AM company, real estate management company).
TOTAL PBT (1+2+3)				92.1	+48%

Resilience And Financial Strength

Equity (in €M)

Gross Technical Provisions (in €M)

© Triglav Group: 9M 2021 Results Investor Presentation

Capital position:

Within target range 200 – 250%.

10

Prudent reserving. Provisions by type (in comparison to 2020 YE):

• Mathematical provisions up by 3% to €2,022M (increased provisions for unit-linked life insurance contracts),
• Gross claims provisions increased by 9% to € 704M,
• Gross unearned premium up by 25% to €430M (in line with movement and duration of GWP and nature of underwritten risks),
• Provisions for bonuses and discounts up by 31% to € 37M (additional provisions in Health due to pandemic),
• Other provisions down by 9% to €43M (mainly in Life).

GWP Growth In All Insurance Segments

GWP development from 9M 2020 to 9M 2021 (in €M) GWP growth by segments

Insurance Segment	GWP (in €; growth y-o-y)
Non – life	721.6	(+12%)
Life & Pensions	186.3	(+9%)
Health	148.3	(+1%)
GWP TOTAL	1,056.2	(+10%)

classes except in accident and motor vehicle liability insurance which remained at similar level as last year.

GWP Growth In All Markets

9M 2021 GWP by markets (GWP in €M; GWP growth y-o-y in %)

© Triglav Group: 9M 2021 Results Investor Presentation

12

Claims Experience In line with Expectations

Gross Claims Paid Development from 9M 2020 to 9M 2021 (in €M) 9M 2021 Gross Claims Paid

13

Insurance Segment	Gross claims paid (in €; growth y-o-y)
Non – life	270.2 (-1%)
Life & Pensions	136.7 (+7%)
Health	114.7 (+12%)
GWP TOTAL	521.6 (+3%)

Claims continued to be affected by COVID-19 pandemic (lower frequency of claims in some insurance classes, increased volume in others due to last year's disruption in some services).

Not Extreme CAT Loss Events

CAT losses in last 10 years (estimated values; in €M; Triglav Re's non-group CAT losses included)

9M 2021 major CAT events (estimated value):

• Frost, storm, hail and flood storms in Slovenia (€ 17.2M),
• Triglav RE's claims: Frost, hail storms and floods in some European countries and in China (total € 7.6M).

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

14

Continued Underwriting Discipline

Triglav Group Combined Ratio NL & Health by markets

Well Balanced GWP Structure

Well balanced structure of GWP.

Constant upgrading product /service mix.

Omni-channel sales approach.

Own sales network 64.6% (+1.3 pp)

Data for 9M 2021, change y-o-y

Triglav market share in Slovenia by segments (9M 2021): 46.3% in Non-life (+2.4 pp y-o-y) 30.9% in Life (+0.9 pp y-o-y) 30.3% in Health (+0.1 pp y-o-y)

Leading Insurance /Financial Group in Adria Region

© Triglav Group: 9M 2021 Results Investor Presentation

¹ Adria region: Slovenia, Croatia, Serbia, Bosnia and Herzegovina, Montenegro, North Macedonia

1 st rank

*Data for H1 2021

3 rd rank (up from 4 th y-o-y)

Position by Markets

High-Quality Investment Portfolio

Relatively conservative investment policy.

Asset allocation subject to ALM on portfolio basis and ERM principles. Key objective is to maintain high overall rating of whole investment portfolio.

In 9M 2021:

Asset Allocation (Unit-linked insurance contract investments excluded): Total as at 9M 2021: € 3,031M (+1% compare to 2020 YE)

No significant changes in portfolio structure compare to 2020 YE. Changed share of bonds and equities in total portfolio predominantly due to rising interest rates in 9M 2021 (negative bond yield) and growth of share prices.

Bond Portfolio

Bond portfolio's investments are globally diversified and of high quality - 91% with investment grade credit rating

Debt instruments by rating and by type of issuer (Unit-linked insurance contract investments data excluded) Total as at 9M 2021: € 2,559M (-1% compare to 2020 YE)

Non-life and Health Investment Portfolios

© Triglav Group: 9M 2021 Results Investor Presentation

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

Corporate Responsability – our E, S & G

In 9M 2021:

In compliance with SFDR (EU) 2019/2088, Triglav published Sustainability aspect of remuneration policy and Sustainability aspect of investment policy with goal of integrating, measuring and considering sustainability factors in the investment process to improve long-term risk-adjusted return.

Continuation of process of integrating sustainability risks and opportunities into Triglav' business (in AM increased share of sustainable investment classes in line with European Green Deal; in insurance available business products to underwrite risks related to climate change, more efficient use of energy and its production from renewable sources and sustainable mobility; promotion of preventive action by policyholders etc).

Activities for improving ESG reporting (in addition to GRI also SASB standards etc).

Triglav Group follows its Commitment to sustainability (ESG), which it adopted at the end of 2020 year.

2022 Outlook PBT, GWP, CoR

Premium Growth, Favourable CoR

Combined ratio NL

© Triglav Group: 9M 2021 Results Investor Presentation

Subject to continued underwriting discipline, premium growth planned (in existing markets of region and from crossborder insurance services in EU markets).

Increased claims planned predominantly due to growth of insurance portfolio. Similar trends of major CAT events as in previous years.

Group's provisions expected to be under influence of favourable development of claims provisions, conservatively formed in recent years.

Profitable and Safe Operations

Profit before tax (in €M)

Planned figures for 2022 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.

Triglav will focus on clients, support development of its partners, provide its employees with development - oriented environment and remain stable, safe and profitable investment for investors.

Appendix 9M 2021 Performance by Markets

Insurance penetration by Triglav's markets in 2020 (Premium share in GDP) Correlation between GWP and GDP

GDP Growth and Low Insurance Density Key Growth Drivers

© Triglav Group: 9M 2021 Results Investor Presentation 28

Insurance density by Triglav's markets in 2020 (GWP per capita, in €)

EU	SLO	CRO	MN	SER	BiH	NMK
6.9%	5.6%	2.9%	2.2%	2.0%	2.3%	1.5%

Macroeconomic Overview of Adria Region

© Triglav Group: 9M 2021 Results Investor Presentation

Credit rating		Slovenia		Croatia		Serbia		Montenegro		Bosnia and Herzegovina		North Macedonia
S&P		AA-/Stable		BBB-/Stable	BB+/Stable		B/Stable			B/Stable		BB-/Stable
Moodys		A3/Stable		Ba1/Stable	Ba2/Stable		B1/Stable		B3/Stable		-
Fitch		A/Stable		BBB-/Stable	BB+/Stable		-		-		BB+/Negative
Economic Indicators	Croatia Serbia Montenegro Slovenia			Bosnia and Herzegovina		North Macedonia			EU
	2020	2021 Outlook	2020	2021 Outlook	2020	2021 Outlook	2020	2021 Outlook	2020	2021 Outlook	2020	2021 Outlook	2020	2021 Outlook
GDP growth (in %)	-4.2	6.3	-8.0	6.3	-1,0	6.5	-15.2	7.0	-4.3	2.8	-4.5	4.0	-5.9	5.1
GDP per capita (in 1,000 USD)	25.5	28.9	13.9	15.8	7.6	8.8	7.7	8.8	6.0	6.6	5.9	6.7	44.4	48.3
Inflation rate (in %)	-0,1	1.4	0.1	2.0	1.6	3.0	-0.2	2.0	-1.1	1.8	1.2	3.1	0.7	2.4
Population (in M)	2.1	2.1	4.0	4.0	6.9	6.9	0.6	0.6	3.3	3.3	2.1	2.1	444.9	445.5

Source: IMF, Outlook October 2021 Credit ratings as of October 2021

Slovenia

Zavarovalnica Triglav
Triglav, Zdravstvena zavarovalnica
Triglav, pokojninska družba

GWP growth above the market (i.e. 4%). GWP of Zavarovalnica Triglav increased by 11%, TZZ by 1% and TPD by 6%. Rising price competition on selected insurance lines, upward pressure on the acquisition costs.

Market share by segments: 46% in non-life, 31% in life insurance and 30% in health insurance.

*Non-consolidated

9M 2021 Performance by Markets

Croatia

Triglav Osiguranje, Zagreb

Strong GWP growth above the market (i.e. 10%) due to new clients. Increased claims also due to last year's earthquakes, growth of insurance portfolio and active approach to payouts of capitalised life policies with high guarantees. Improved underwriting profitability. Improved market share.

© Triglav Group: 9M 2021 Results Investor Presentation

9M 2021 Performance by Markets

Serbia

Triglav Osiguranje, Belgrade

Strong growth of GWP due to new clients and in Life insurance due to bancassurance. Improved structure of GWP.

Increased market share. Upward pressure on the acquisition costs.

© Triglav Group: 9M 2021 Results Investor Presentation

9M 2021 Performance by Markets

Montenegro

Lovćen Osiguranje Lovćen Životna Osiguranja

9M 2021 Performance by Markets

Bosnia and Herzegovina

Triglav Osiguranje, Sarajevo Triglav Osiguranje, Banja Luka

9M 2021 Performance by Markets

North Macedonia

Triglav Osiguruvanje, Skopje Triglav Osiguruvanje Život, Skopje

Challenging market conditions, higher disruption in Non-life business due to covid-related travel restrictions. Due to portfolio consolidation in Non-life decrease of market share. Increased bancassurance in Life segment.

9M 2021 Performance by Markets

About Triglav Group

Profitability Client-centric approach New ways of doing business 2019-2022

2010 Profitability Selective expansion

Fast growth in the markets outside Slovenia

2000

Leading position in Slovenia, expansion started

1900

2008 Listing on the Ljubljana SE

Established in Austro-Hungarian Empire as the first Slovenian insurance company founded with domestic capital

1990

Transformation into a public limited company Expansion of business

Triglav Story

Triglav Group

About Triglav Group

¹ Adria region: Slovenia, Croatia, Serbia, Bosnia and Herzegovina, Montenegro, North Macedonia

Triglav Group Core business Shareholders

ASSET MANAGEMENT

Insurance portfolios & own funds (2020): AUM € 2,995M

Investment funds & discretionary mandate assets (2020): AUM € 1,156M

ZPIZ (35%) and SDH (28%) predominant shareholders

31% free float

• 17% international share
• ≈ 12,400 shareholders

GWP Diversification (2020) High quality investment portfolio (2020)

• Debt instruments
• Equities
• Investment property
• Deposits with banks
• Loans given
• Other

Two Tier Governance System

	Andrej Slapar	Uroš Ivanc	Tadej Čoroli	Barbara Smolnikar	David Benedek	Marica Makoter
	President	Member	Member	Member	Member	Member and Employee Representative
	CEO	CFO	Non-life &Sales	Life & Pensions	Triglav Group subsidiaries, Investments	HRM, Operations, IT, Fraud prevention
The first start/end of term of office:	2013 – 2024	2014 – 2024	2014 – 2024	2017 – 2022	2019 – 2024	2011 – 2026
Employed at Triglav since:	1997	2001	2001	2017	2014	2001

About Triglav Group

High "A" Credit Ratings /Stable

A.M. Best	A	stable	13 -Oct
S&P Global Ratings	A	stable	13 -Sept
A.M. Best	A	stable	16 -Oct
S&P Global Ratings	A	stable	11 -Sept
A.M. Best	A	stable	19 -Nov
S&P Global Ratings	A	stable	31 -Jul
A.M. Best	A	stable	30 -Nov
S&P Global Ratings	A	stable	7 -Sep
A.M. Best	A	stable	30 -Oct
S&P Global Ratings	A	stable	8 -Sep
A.M. Best	A	stable	28 -Oct
S&P Global Ratings	A	stable	1 -Jul
A.M. Best	A -	positive	16 -Oct
S&P Global Ratings	A -	positive	29 -Aug
A.M. Best	A -	positive	3 -Oct
S&P Global Ratings	A -	stable	26 -Sep
S&P Global Ratings	A -	stable	7 -Jul
A.M. Best	A -	stable	17 -Oct
S&P Global Ratings	A -	stable	4 -Jul
A.M. Best	A -	stable	21 -Mar
S&P Global Ratings	BBB+	positive	14 -Feb
S&P Global Ratings	A -	negative	8 -Aug
S&P Global Ratings	A	negative	21 -Nov
S&P Global Ratings	A	stable	25 -Nov
S&P Global Ratings	A	stable	25 -Aug
S&P Global Ratings	A	stable	25 -Sep

2008

2021

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

Business risk profile - strong

Financial risk profile - very strong

Adequate reinsurance protection

About Triglav Group

Disciplined Capital Management

> 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

Solvency Ratio of Triglav Group

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

Dividend Policy

Gross DPS (in €) and Pay-out Ratio (% consolidated net profit) in last 10 years

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

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

Three objectives are followed in a balanced manner:

• to ensure prudent capital management of Triglav Group and its financial stability,
• to reinvest net profit in the implementation of the strategy of growth and development of Triglav Group and
• to pay out attractive dividends to the shareholders.

0

0,5

1

1,5

2

2,5

3

3,5

4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

*In 2020: Regulator's call upon insurance companies in Slovenia to suspend payout of dividends. Accumulated profit at yearend 2019 remains undistributed.

**In 2021: Expectations of regulator that dividend payment be suspended until end of Sept 2021 but some exceptions are allowed. AGM confirmed MB and SB proposal of dividend payment in the amount of EUR 1.7 GDS (53% dividend payout).

Triglav Group Strategy

About Triglav Group

Our vision

We set the standard for an outstanding user experience – anytime, anywhere.

Our mission

We build a safer future.

Our values

Responsiveness, simplicity and reliability are reflected in our day-to-day operations.

Triglav Group upgraded its strategy to 2025 to reflect the goals of further growth and development and its client-centric approach.

Triglav Group is continuing with digital transformation and development of serviceoriented business models and ecosystems that address interrelated client needs.

By being committed to business sustainability, Triglav Group remains a development-oriented environment for its employees, connected with its partners, and stable, safe and profitable investment for investors.

Operations of Triglav Group, leading insurance-financial group in Adria region, are planned to remain profitable and safe. In strategic period, 10% return on equity (ROE) is planned and in 2025 total income is projected to exceed EUR 1.6 billion.

Stable Shareholder Structure

Stable Structure of Top 10 (as at 31 Dec 2020) 31% shares are Free floating (as at 31 Dec 2020)

Free float shareholder structure by country of origin of subscriber in the share register:

ZPIZ Slovenije, Ljubljana		34.47%
SDH d.d., Ljubljana		28.09%
Addiko Bank, d.d., Pension fund 1 - fid. account, Croatia	6.57%	Two state-owned funds
Unicredit Bank Austria - fiduciary account, Austria	2.73%	predominant shareholders. Around 12.400
Citibank - fiduciary account, Great Britain	1.32%	shareholders. International shareholders
Hrvatska poštanska banka - fiduciary account, Croatia	1.02%	from 35 countries with 17% stake (2008: 4%) or 33% of free float.
East Capital - East Capital Balkans, Luxembourg	0.84%
Sava Re, d.d., Ljubljana	0.79%
The Bank of New York Mellon - fiduciary account, USA	0.73%

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