Pozavarovalnica Sava

Annual / Quarterly Financial Statement • Mar 7, 2022

Unaudited financial statements of the Sava Insurance Group 2021

Ljubljana, 4 March 2022

Key unaudited figures of the Sava Insurance Group

EUR, except percentages	2021	2020
Total of all operating segments
Operating revenue	732,714,051	680,801,492
Year-on-year change	7.6%	15.5%
Profit or loss before tax	93,535,270	67,746,714
Year-on-year change	38.1%	11.5%
Profit or loss, net of tax	76,167,178	56,386,299
Year-on-year change	35.1%	12.3%
Comprehensive income	57,585,416	75,783,096
Year-on-year change	-24.0%	27.2%
Return on revenue*	10.5%	8.6%
Net expense ratio, including operating revenue/**	29.0%	29.5%
Return on equity	15.8%	13.3%
Earnings or loss per share	4.91	3.63
Return on the investment portfolio/*	1.8%	1.6%
Reinsurance + non-life
Gross premiums written	546,925,838	546,242,406
Year-on-year change	0.1%	7.4%
Net incurred loss ratio*	55.6%	61.6%
Net expense ratio	31.6%	31.1%
Net combined ratio*	88.3%	93.9%
Profit or loss before tax	72,204,759	41,069,220
Year-on-year change	75.8%	1.5%
Life
Gross premiums written	178,707,830	130,266,058
Year-on-year change	37.2%	48.6%
Net expense ratio	21.4%	23.0%
Profit or loss before tax	16,761,225	27,284,252
Year-on-year change	-38.6%	64.4%
Total of all operating segments	31 December 2021	31 December 2020
Total assets	2,658,322,359	2,467,251,303
Change on 31 December of prior year	7.7%	30.8%
Shareholders' equity	504,077,018	460,214,488
Change on 31 December of prior year	9.5%	19.6%
Net technical provisions	1,703,916,399	1,600,307,265
Change on 31 December of prior year	6.5%	43.4%
Book value per share	32.53	29.70
Number of employees (full-time equivalent basis)	2,698.9	2,701.0
Solvency ratio under Solvency II rules	198%1	198%

* Excluding the effect of exchange differences.

** Subordinated debt expenses are excluded. In 2020, impairment losses on goodwill are also excluded.

*** The amortisation charge for a customer list is excluded. The Group net expense ratio in 2020 does not include the positive difference between the fair value of net assets acquired and the purchase price of the investment in Vita.

¹ The ratio is calculated using the Group's estimated eligible own funds for 2021 and the estimated SCR, both as at 31 December 2021. During the preparation of the audited annual report, the Sava Insurance Group is yet to obtain reviewed capital adequacy data for 2021 from their certified auditor. The audited annual report will include an unaudited final calculation as at 31 December 2021. An auditorreviewed annual calculation will be published in the Group's solvency and financial condition report for 2021 to be released on 20 May 2022.

Unaudited financial statements of the Sava Insurance Group

EUR	31 December 2021	31 December 2020
ASSETS	2,658,322,359	2,467,251,303
Intangible assets	67,306,775	64,278,611
Property, plant and equipment	56,337,174	48,336,491
Right-of-use assets	7,386,426	8,648,594
Deferred tax assets	5,487,403	4,924,819
Investment property	14,281,192	16,121,079
Financial investments in subsidiaries and associates	20,479,729	15,056,143
Financial investments:	1,472,688,443	1,430,149,336
- Loans and deposits	29,846,572	31,796,178
- Held to maturity	40,023,124	43,679,425
- Available for sale	1,368,432,673	1,327,264,062
- At fair value through profit or loss	34,386,074	27,409,671
Assets held for the benefit of policyholders who bear the investment risk	517,439,592	411,224,812
Reinsurers' share of technical provisions	57,767,056	42,609,217
Investment contract assets	172,836,349	158,765,028
Receivables	149,940,870	153,871,498
Receivables arising out of primary insurance business	128,544,723	135,285,588
Receivables arising out of reinsurance and co-insurance business	9,077,165	6,054,576
Current tax assets	330,518	529,831
Other receivables	11,988,464	12,001,503
Deferred acquisition costs	22,572,741	24,278,003
Other assets	4,380,387	4,240,414
Cash and cash equivalents	88,647,678	83,458,594
Non-current assets held for sale	770,544	1,288,664
EQUITY AND LIABILITIES	2,658,322,359	2,467,251,303
Shareholders' equity	504,077,018	460,214,488
Share capital	71,856,376	71,856,376
Capital reserves	42,702,320	43,035,948
Profit reserves	229,008,079	202,285,580
Own shares	-24,938,709	-24,938,709
Fair value reserve	21,246,888	40,173,090
Reserve due to fair value revaluation	1,300,871	964,485
Retained earnings	116,166,406	73,413,529
Net profit or loss for the period	49,623,843	56,197,540
Translation reserve	-3,256,354	-3,266,013
Equity attributable to owners of the controlling company	503,709,720	459,721,826
Non-controlling interests in equity	367,298	492,662
Subordinated liabilities	74,863,524	74,804,974
Technical provisions	1,237,500,117	1,233,312,054
Unearned premiums	207,022,452	210,614,842
Technical provisions for life insurance business	443,577,279	465,641,679
Provision for outstanding claims	578,713,597	547,764,679
Other technical provisions	8,186,789	9,290,854
Technical provisions for the benefit of life insurance policyholders who bear the
investment risk	524,183,338	409,604,428
Other provisions	9,018,106	9,287,735
Deferred tax liabilities	11,387,395	14,901,575
Investment contract liabilities	172,660,266	158,596,453
Other financial liabilities	584,924	470,937
Liabilities from operating activities	54,783,379	58,412,273
Liabilities from primary insurance business	41,669,619	46,269,833
Liabilities from reinsurance and co-insurance business	10,109,076	6,837,159
Current income tax liabilities	3,004,684	5,305,281
Lease liability	7,224,138	8,255,225
Other liabilities	62,040,154	39,391,161

Unaudited statement of financial position

Unaudited income statement

EUR
	2021	2020
Net premiums earned	686,574,317	635,361,568
Gross premiums written	729,898,408	679,749,305
Written premiums ceded to reinsurers and co-insurers	-46,115,953	-41,050,900
Change in gross unearned premiums	3,425,874	-2,216,711
Change in unearned premiums, reinsurers' and co-insurers' shares	-634,012	-1,120,126
Income from investments in subsidiaries and associates	772,886	142,088
Profit from investments in equity-accounted associate companies	772,886	142,088
Investment income	34,057,270	26,449,203
Interest income	16,842,749	16,151,438
Other investment income	17,214,521	10,297,765
Net realised and unrealised gains on investments of life insurance policyholders who bear
the investment risk	68,719,103	23,043,525
Other technical income	19,101,970	14,544,056
Commission income	8,640,223	5,899,388
Other technical income	10,461,747	8,644,668
Other income	27,037,764	30,895,868
Net claims incurred	-408,814,273	-426,695,412
Gross claims payments, net of income from recourse receivables	-406,908,665	-399,532,382
Reinsurers' and co-insurers' shares	12,632,236	5,199,171
Change in the gross provision for outstanding claims	-30,461,435	-36,154,019
Change in the provision for outstanding claims, reinsurers' and co-insurers' shares	15,923,591	3,791,818
Change in other technical provisions	23,872,769	40,613,572
Change in technical provisions for policyholders who bear the investment risk	-115,064,830	-35,479,642
Expenses for bonuses and rebates	-276,004	-103,253
Operating expenses	-219,931,765	-203,216,146
Acquisition costs	-77,684,219	-74,410,866
Change in deferred acquisition costs	-1,926,381	1,561,215
Other operating expenses	-140,321,165	-130,366,495
Expenses for investments in subsidiaries and associates and impairment losses on
goodwill	0	-2,096,868
Impairment loss on goodwill	0	-2,096,868
Expenses for financial assets and liabilities	-5,710,086	-13,122,281
Impairment losses on financial assets not at fair value through profit or loss	-161,960	-1,099,794
Interest expense	-3,128,936	-3,152,597
Other investment expenses	-2,419,190	-8,869,890
Other technical expenses	-14,337,516	-19,324,402
Other expenses	-2,466,335	-3,265,162
Profit or loss before tax	93,535,270	67,746,714
Income tax expense	-17,368,092	-11,360,415
Net profit or loss for the period	76,167,178	56,386,299
Net profit or loss attributable to owners of the controlling company	76,074,720	56,222,528
Net profit/loss attributable to non-controlling interests	92,457	163,771
Earnings per share (basic and diluted)	4.91	3.63