ANNUAL REPORT

September

ANNUAL REPORT 2022

2022

BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

Operating

After-tax Return

Return

CAGR:

on profit	19.2%
revenue	11.4%

of the Sava Insurance Group (€m)

2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
753.6	14.9%	968.2	1.1%	3	B U S I N E S S	S U S T A I N A B I L I T Y	F I N A N C I A L	A p p e n d i c e s	R E P O R T S T A T E M E N T S

ANNUAL REPORT 2022

Insurance is about connecting.

Connecting individuals and companies to ensure security and quality of life, putting them first and making services more accessible to them through digital tools. Through reinsurance, we connect insurance companies in Slovenia and abroad. Many of them have placed their trust in us for decades.

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS WITH NOTES

Declaration of the management board

To the best of our knowledge and in accordance with the International Financial Reporting Standards, the consolidated and separate financial statements give a true and fair view of the financial position and profit or loss of the Sava Insurance Group and Sava Re d.d. The business report gives a fair view of the development and performance of the Group and the Company, and their financial position, including a description of the principal risks to which the consolidated companies are exposed.

Ljubljana, 15 March 2023

ANNUAL REPORT 2022

Polona Marko

Peter Pirš Skvarča, Jazbec, Zupančič,

Chairman	Member	Member
of the Management Board	of the Management Board	of the Management Board

BUSINESS SUSTAINABILITY

FINANCIAL STATEMENTS

REPORT WITH NOTES

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS

WITH NOTES

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY
FINANCIAL STATEMENTS
REPORT WITH NOTES

ANNUAL REPORT 2022

BUSINESS

Business is about people. It is about building relationships based on trust and taking responsibility. We are honoured by your trust and belief in our story. It is your trust that drives us, so that we do not rest at any goal we achieve, but always reach for the next one.

A N N U A L R E P O R T 2022

1

In 2022, the Group continued to strengthen its business in foreign markets, achieving strong premium and profit growth. As expected, the management board

2

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

A N N U A L R E P O R T 2022

In 2022, the Group continued to make solid progress in its development strategy of digital transformation and customer-centric business processes. At the end of the year, the Group thus adopted a sustainable development policy, which governs the sustainability management initiatives through sponsorships, donations and prevention volunteering by taking part in our Heart for the initiative.

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

In 2022, the Group's development activities were focused on the consolidation of the sustainability management system and underlines the principles of responsible development.

Company name

Sava Re, d.d.

Profile of Sava Re and the Sava Insurance Group

ANNUAL REPORT 2022

Business address

Dunajska 56, 1000 Ljubljana, Slovenia

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS REPORT WITH NOTES

Telephone (switchboard)

+386 1 47 50 200

2.2 Significant events in 2022

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS WITH NOTES

2.3 Significant events after the reporting date

A N N U A L R E P O R T 2022

14 S U S T A I N A B I L I T Y

F I N A N C I A L A p P e n d i c e s

B U S I N E S S R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

credit ratings reaffirmed

2.5 Profile of the Sava Insurance Group

ANNUAL REPORT 2022

15 SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS REPORT WITH NOTES

Zavarovalnica Sava

ANNUAL REPORT 2022

Composition

Sava	Osiguranje	IllyriaSava	Sava	OsiguŽivotruvanjeno	Osiguranje
100%	100%	93,86%	100%	100%	100%

SUSTAINABILITY FINANCIAL APPENDICES

BUSINESS subsidiary REPORT STATEMENTS REPORT WITH NOTES

Montenegro	Slovenia	Kosovo	Croatia	Sava	Serbia
Agent	IllyriaSavaSO	Sava	Poslovno	Neživotno	Life
Station	Savjetovanje	100%	100%	100%	100%

Composition

Indirect	ASISTIM	subsidiary
Sava	Car	Sava
Penzisko	Car	Društvo
(Sava	Car	MNE)
Associate	company	Sava
Infond	Vita	100%
Sava	Pokojninska	100%
TBS	Team	87,5%
DCB	40,1%

2-1, 2-2.

The percentages in the figure relate to equity stakes. The equity stakes provided for G2i, Sava Infond and DCB differ from the voting rights held by these companies. Section 2.7 “General information on Group companies as at 31 December 2022“ provides

Company names of Sava Insurance Group members

ANNUAL REPORT 2022

17 Official long name

Short name in this document

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Zavarovalna skupina Sava	Sava Insurance Group

2.7 General information on Group companies as at 31 December 2022

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

19 Registered

S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S

office

R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

Ulica Svetlane Kane Radević br. 1, 81000 Pristina, Kosovo

Sheshi Nëna Terezë 33, 10000 Pristina, Kosovo

Bulevar vojvode Mišića 51, 11040 Belgrade, Serbia

Ulica Svetlane, Podgorica, Montenegro

Sava Osiguranje (MNE)

Illyria Life (RKS)

Sava Životno Osiguranje (SRB)

Sava Car

Sava

Agent (MNE)

Sava Station (MKD)

Sava Pokojninska (SVN)

TBS Team

ANNUAL REPORT 2022

REGISTERED SUSTAINABILITY FINANCIAL

APPENDICES

BUSINESS OFFICE REPORT STATEMENTS WITH NOTES

Ulica Svetlane Kane Radević br. 1, 81000 Zagreb

br. 28A, 1000 Skopje, North Macedonia

Ulica Eve Lovše 7, 2000 Maribor, Slovenia

Ljubljanska Podgorica, Montenegro

Vita (SVN)

DCB (SVN)

G2I (GBR)

Sava Infond

ANNUAL REPORT 2022

Registered

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS OFFICE REPORT STATEMENTS WITH NOTES

Trg republike 3, 1000 Ljubljana, Slovenia

Pod Skalo 4, 4260 Bled, Slovenia

First Floor Ridgeland House 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom

2.8 Changes to the organisation

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

Shareholders and share trading

SBITOP

S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T

S TAT E M E N T S R E P O R T W I T H N O T E S

POSR

STOXX EUROPE 600 INSURANCE INDEX

Driven by the uncertain economic situation and the developments in financial market, the Sava Re share price fell by 19.7% from EUR 27.9 to EUR 22.4 in 2022. In 2022, the average price was EUR 25.3. In 2022, turnover in Sava Re shares was EUR 71,859, compared to EUR 91,863 in 2021. Average daily turnover in this period reached a high of EUR 30.4 and a low of EUR 20.1.

POSR share price performance from 1 January 2022 to 31 December 2022 compared to the SBITOP Index and the STOXX Europe 600 Insurance Index

(31 December 2021 = 100)
2022	80
	70

Basic details about the POSR share

Shareholders

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

31 Dec 2022	31 Dec 2021
Sava Re shareholder structure as at 31 December
Share capital																71,856,376	71,856,376

ANNUAL REPORT 2022

Composition of Sava Re share capital

In 2022, the 10 largest shareholders held a combined share of 67.9% of the share capital and 75.5% of rights, largely unchanged from the previous year.

Ten largest shareholders and qualifying shareholders under the Slovenian Takeover Act as at 31 December 2022

Shareholder	Percentage of Share Capital	Percentage of Voting Rights

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

Share transfer restrictions

of up to 1,721,966 own shares of the Company, representing 10% of the Company’s share capital. The Company initially acquired its own shares only on the regulated market for financial instruments, but after the general meeting authorisation to purchase shares.

S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T

S TAT E M E N T S R E P O R T W I T H N O T E S

All Sava Re shares are freely transferable.

Dividend

13. Responsibility to investors

ANNUAL REPORT 2022

27 SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS WITH NOTES

Report of the supervisory board

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

ANNUAL REPORT 2022

29

The members of the management board and the secretary of the supervisory board also participated in the discussions, whereas other professional staff assisted in the performance of the Group’s subsidiaries to the extent permitted by law.

The supervisory board also periodically reviewed other certain agenda items.

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Financial reports – interim reports

The supervisory board actively monitored the performance.

ANNUAL REPORT 2022

30

The supervisory board considers the reports prepared by the internal audit to have been independent and objective, and that the internal auditor’s recommendations and findings have been taken into account by discussing individual policies and giving its consent to the nomination process for the reappointment of Polona.

In 2022, the supervisory board also took note of the update on the periodic review of Solvency II policies, assisted by the relevant committees.

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Adoption Correspondence

ANNUAL REPORT 2022

that they have no conflicts of interest. In 2022, all regulators

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

The supervisory board took note of the management

the members of the supervisory board and its com-

board’s report on cyber risk management.

In April and August 2022, the supervisory board ap-

mittees declared themselves to be independent.

Operation in 2022

Performance-based pay for the head of the internal audit

ESEF Directive (KPMG) and the findings of the

ANNUAL REPORT 2022

The audit committee also conducted an interview with the head of the internal audit department for 2021. The audit committee also reviewed the absolute level of net assets as required.

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

The audit committee met a total of 12 times in 2022.

In accordance with the International local regulators of Brazil and Argentina (KPMG).

A N N U A L R E P O R T 2022

Cooperation with the market regulators

Further strengthening audit committee best practices

The supervisory board also believes that the composition of the audit committee is appropriate and that members have the professional and personal qualities.

In October 2022, the audit committee submitted a completed questionnaire to the Agency for Public Oversight of Auditing regarding the assessment of the quality of its work and reported to the super-

The audit committee carried out a self-assessment to maintain a high level of quality and independence.

A N N U A L R E P O R T 2022

It reviewed in detail all risk management documents meetings that the external committee member Janez carried out in 2022, in accordance with the internal.

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

submitted to it or that the supervisory board is charged Komelj was also invited to, the committee took note of and proper policy for relevant personnel. All the.

with approving: a model for monitoring inflation in the non-life portfolio of Zavarovalnica Sava. It also discussed in detail a of their independence, which was also noted by the.

A N N U A L R E P O R T 2022

35

The nominations and remuneration committee reviewed in detail the management board’s report on the personal objectives for the chairman and each member of the management board for 2023.

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

Composition in 2022

Succession policy for the senior management of Sava Insurance Group companies.

CONCLUDING FINDINGS

ANNUAL REPORT 2022

36 SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Once the pandemic subsided in 2022, global markets...

In 2022, the Sava Insurance Group completed the...

The Company’s management board submitted the...

DETERMINATION OF ANNUAL REPORT 2022

37 SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

PROPOSAL FOR APPROPRIATION OF DISTRIBUTABLE PROFIT OF SAVA RE

Corporate Governance Statement

Annual Report 2022

Statement in accordance with Article 70(5) of the Slovenian Companies Act

Sustainability

Financial Appendices

Business Report Statements with Notes

5.2.3 Relation with shareholders

5.2.4 upon the appointment of new committee members

A N N U A L R E P O R T 2022

upon their reappointment, the terms of office of external committee members are tied to the terms

S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

Recommendation 8.2: Encouragement of major share-

Recommendation 14.4: Duties of the Supervisory office of the supervisory board.

5.3 Bodies of Sava Re

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL APPENDICES

BUSINESS REPORT STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

The general meeting in 2022. At the 38 general meeting, the shareholders approved the report on the remuneration of the members. Members are appointed for a term of up to four years. The general meeting of shareholders was convened once.

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

The supervisory board members may be re-elected. The supervisory board members in 2022.

d.d. for the financial year 2021, whereas the consultation elect a chairperson from among the board’s members.

ANNUAL REPORT 2022

Commitment

to identify the tees, tasking them with specific areas, the preparation assess the impact of various types of risk on economic

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS REPORT WITH NOTES

of draft resolutions of the supervisory board, the im- and regulatory capital; existence of any conflict of interest

plementation of resolutions of the supervisory board, assess the Group’s overall risk governance framework, Before taking office and afterwards periodically (annually) thereby offering it professional support. including the risk management policy, the risk

Composition of the supervisory board in 2022

ANNUAL REPORT 2022

Full name

SUSTAINABILITY	FINANCIAL
Davor Ivan Gjivoje Jr		chairman
Keith William Morris	deputy chair
Klemen Babnik			member
Matej Gomboši			member

External member of supervisory board committees in 2022

ANNUAL REPORT 2022

Full name

SUSTAINABILITY	FINANCIAL	Appendices	BUSINESS REPORT
Katarina	W I T HSitar	Šuštar	NOTES
Dragan	Martinović
Slaven	Mićković
Janez	Komelj
Rok

Supervisory board

Audit committee

Risk committee

5.3.4 Management

The management board runs the Company and represents the Company’s policy on diversity of the management and supervisory boards. This policy is posted on the Company’s website.

A N N U A L R E P O R T 2022

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T

S TAT E M E N T S

R E P O R T W I T H N O T E S

Remunerations, compensation and other benefits

ANNUAL REPORT 2022

Composition

At its session of 25 April 2022, the Sava board in 2022 reappointed the supervisory board.

Supervisory Board Members

Full Name	Function
Marko Jazbec	Chairman
Polona Pirš Zupančič	Member
Peter Skvarča	Member
Jošt Dolničar	Member (until 4 May 2022)

SUSTAINABILITY

FINANCIAL

APPENDICES

BUSINESS REPORT

STATEMENTS WITH NOTES

Polona Pirš Zupančič, whose five-year term of office expired on 14 January 2023, as

5.4 Control and Risk Management Systems Relating to Financial Reporting

Annual Report 2022

Sustainability

Financial Appendices

Business Report Statements Report with Notes

5.5 External audit

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS

REPORT WITH NOTES

Company rules on appointment and removal of Company rules on amendments to its articles of cases involving significant changes in ownership

ANNUAL REPORT 2022

49 supervisory board members association

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Under the Sava Re articles of association, the supervisory board is composed of six members, of which the Sava Re articles of association do not contain special provisions governing their amendment. Under the agreements between an entity and the counterparty.

5.7 Governance of Sava Insurance Group members

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS WITH NOTES

Our Mission, Vision, Strategic Focus and Goals

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

We are building a customer-centric commitment with constant care, relationships.

Corporate support functions

6.2 Strategic focus of the Sava Insurance Group

ANNUAL REPORT 2022

Integral risk management

Asset management

Non-life	Managed	Non-life	Life	Mutual	Healthcare	Assistance	Pensions	International	Group	Slovenia	International accounts	Funds
52	Reinsurance	Insurance	Other				Pensions

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS

REPORT WITH NOTES

A N N U A L R E P O R T 2022

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T

S TAT E M E N T S

R E P O R T W I T H N O T E S

For the period 2023–2027, the Group has adopted a new strategy that will drive the Group forward on three key priorities:

The Planned Business Growth of the Sava Insurance Group for 2023

Annual Report 2022

Operating revenue is based on the new accounting standard IFRS 6.3.

Business Plan of the Sava Insurance Group for 2023

Insurance Contracts > 11% and IFRS > 3% “Financial Instruments”, which both came into effect on 1 January 2023.

Sustainability Financial Appendices

Business Report Statements with Notes

Non-Group reinsurance > 3% Other > 2%

The Group has set these targets.

ANNUAL REPORT 2022

Profit

Goals achieved in 2022: 25

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

Goals achieved in the Group’s Paperless business intelligence

is being extended to ad-euro and IFRSs) and started the operational support

strategic focus areas

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T

S T A T E M E N T S R E P O R T W I T H N O T E S

communication across multiple channels is being rolled out.

As for other business applications, we continued out.

Achievement of strategic goals by key Life insurance and pensions Reinsurance

ANNUAL REPORT 2022

57

As part of the expansion of the Group’s life insurance business pillar, the key priority was to further diversify geographically, as well as by market and class of insurance. The Group’s focus in 2022 was on further developing and improving protection policies and products.

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Non-life insurance developments in 2022 were strongly linked to the macroeconomic environment.

Business Environment

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS

REPORT WITH NOTES

Economic developments in markets where the Sava Insurance Group is present

ANNUAL REPORT 2022

59 SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS

REPORT WITH NOTES

Impact of the business

Slovenia

According to the latest estimates, Slovenia’s real economic growth was 5.0% in 2022 and 8.2% in 2021. GDP growth in 2022 was driven by consumption, with increases in both private and government operations of the Sava countries in the region, but estimates suggest that growth in 2022 was comparable to other countries.

North Macedonia

North Macedonia’s GDP growth in 2021 was slightly lower, at 4.0%.

A N N U A L R E P O R T 2022

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T

S TAT E M E N T S

R E P O R T W I T H N O T E S

Markets

A N N U A L R E P O R T 2022

61 S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T

S T A T E M E N T S

R E P O R T W I T H N O T E S

Slovenia: Market

In 2022, the Slovenian insurance market consisted of 12 domestic insurance companies, 5 foreign branches, and 2 reinsurers. Zavarovalnica Sava and Vita ranked second among Slovenian insurers in 2022, with a market share of 19.3%.

In 2022, gross premiums written in the Slovenian insurance market grew by 7.0% (non-life premiums by 8.5% and life premiums by 3.3%). The Sava Insurance Group operates in the market with two companies, which are members of the Slovenian Insurance Association (SIA).

A N N U A L R E P O R T 2022

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T

S T A T E M E N T S W I T H N O T E S

Gross premiums written
Market share	Gross premiums written	Market share	Gross premiums written
Sava Re					44.3%	199,405,329		51.4%	190,051,724
Triglav Re					55.7%	250,292,376		48.6%	202,282,034
Total				100.0%	449,697,705	100.0%	392,333,758

Serbia:

Croatia:

Market

In 2022, the Sava Zavarovalnica market accounted for 79.7% of total non-life insurance premiums in Croatia and 20.3% for life insurance. In the first nine months of 2022, gross written premiums in the Serbian market grew by 7.8% (non-life) and by 14.3% (life premiums dropped by 4.6%).

A N N U A L R E P O R T 2022

Serbia	2018	2019	2020	2021	2022
Market Share	1.0%	0.6%	1.4%	1.0%	0.9%
Non-life Insurers	151.0%	110.6%	2.6%	2.8%	2.6%
Life Insurers	2.0%	3.0%	1.4%	3.2%	2.9%
Other Insurers	2.3%	1.7%	1.1%	1.7%	0.2%

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T

S T A T E M E N T S

R E P O R T W I T H N O T E S

Total accounted for in 2022, non-life insurance premiums in Croatia were 78.0% of total business.

The Sava Insurance Group operates on the market through a branch office of Zavarovalnica Sava, which sells non-life and life insurance (SRB) and in the Croatian market, ranked thirteenth among all companies (SRB); operating together, with a market share of 1.0% in the first nine months of 2022, with a market share of 3.2%.

Montenegro: North Market

Market Shares

2018	2019	2020	2021	2022
8%	14.7%	13.2%	3%	14.7%
13%	10.3%	3.1%	16.1%	1.7%
0%	11.2%	8.8%	8.4%

Annual Report 2022

The Montenegrin insurance market consisted of 9 non-life insurance companies and 16 life insurance companies. In 2022, total premiums accounted for 80.3% of non-life insurance and 19.7% of life insurance.

Sustainability Financial Appendices

Business Report Statements with Notes

In 2022, gross premiums in the Montenegrin market grew by 9.6% for non-life insurance and by 6.8% for life insurance. The total insurance premiums accounted for 82.2% of total premiums.

Insurance Companies

Company	Market Share
Triglav	16.1%
Lovćen	8.4%
Sava	10.3%
Uniqa	9.2%
Grawe	13.8%
Generali
Other Insurers

Kosovo: Market

Kosovo: 6% 38.6% 15.3% 12.3% 1% 1.0% 10.1 2.1 2018 In shares insurance 2022, of the Illyria 2019 market Kosovo (RKS) insurance shares and 2020 2022 Illyria market Life con- 2021 (RKS) 2022

ANNUAL REPORT 2022

4% 5% 70.4% 3% 67.7% 5% 70.0% 4.0% 731 2.3% 12.1 3.6% 14.1 5.3% 10.7 1.0% 10.1 6%.1% 1.7% 112 65

consisted of 14 insurance companies. In the first eleven months of 2022, non-life insurance business accounted for 95.2% of total insurance premiums and life insurance for 4.8%. In 2022, gross premiums written in the Montenegrin insurance market grew by 14.2%.

Non-life premiums grew by 13.5% and life premiums by 31.5%. The Sava Insurance Group is present on the market with the non-life insurance company Illyria and the life insurance company Illyria Life (RKS); together, the two insurers ranked first among all insurers on the market in 2022, with a market share of 15.3%.

Review of operations of the Sava Insurance Group

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS WITH NOTES

Summary of the consolidated income statement

A N N U A L R E P O R T 2022

A key impact on the profit for 2022 compared is the weaker underwriting performance and high claims incurred in the Slovenian non-life segment, driven by several factors: claims inflation, the subsiding.

EUR	2022	2021	Index
Net premiums earned	701,377,709	686,574,317	102.2

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Effect	Reinsurance	of	exchange differences	Non-life	on the consolidated	Life	incomePensions	and statement	AM
400.6103.7178.0413.0113.7171.34.33.5	68
2022	2021

Effect of exchange

Reinsurance

Non-life

Life

Pensions and AM

Other

Net premiums earned by class of business	Other technical income and other
EUR																								2022	2021	Index
Property																							152,792,833		147,320,253	103.7

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

ANNUAL REPORT 2022

Reinsurance

Non-life

Life

Pensions and AM

Other

Composition of net claims incurred and the change in life insurance provisions (€m)

Other technical expenses and other	46

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Composition of other technical expenses and exchange differences

Other technical expenses and exchange differences	48

ANNUAL REPORT 2022

Net	Reinsurance	operating expenses
Non-life	by segment	Life
Pensions	and AM	Other
(€m)
Income	and expenses	relating to the investment
130.7	38.0	29.6
136.1	38.3	7.1
11.4	11.4	2.5
3.1

EUR

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS WITH NOTES

Income

ANNUAL REPORT 2022

	Underwriting		Reinsurance				result			Investment		Non-life	result					Result	Life*	of	life		ResultPensions	of	pensions	AM	Other	Other
		65.452.850.216.918.5111.816.918.57.65.6-1.14.80.661.5.6-1.18.74.80.66.1	72	in 2022 was EUR -60.7 million (2021: EUR 68.7 million).

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS WITH NOTES

Composition of the gross result (excluding the effect of exchange differences).

Despite the difference between the two periods due to the adverse financial market conditions in 2022.

ANNUAL REPORT 2022

Underwriting

result	Investment	result	Other income and expenses
8.1.1	Reinsurance
Net premiums earned	€	m
-0.2	-0.14	4.6	3.7
2.6	3.1	0.0731

SUSTAINABILITY FINANCIAL APPENDICES BUSINESS REPORT STATEMENTS REPORT WITH NOTES

Net premiums earned, reinsurance

Unconsolidated operating expenses are presented in more detail in section 8.2 Sava Re.

2021

Net premiums earned

Composition of the gross income statement, reinsurance earned	Gross premiums written (excluding the effect of exchange differences) (€m)	Net premiums earned

The growth in gross premiums written was mainly driven by a 16.9% increase in premiums in non-proportional reinsurance, the aforementioned positive.

Net claims incurred

Net claims incurred, excluding the effect	EUR	Gross claims paid
Net claims incurred

The higher gross claims paid are due to payment from previous underwriting years. As these claims had favourable rate developments in the global reinsurance markets.

The investment result in 2022 was lower than claims from previous underwriting years. As a result of higher net premiums earned as a result of in 2021 owing to the change in the fair value of FVTPL paid out of established claims provisions, they had significant impact on the final result.

Net claims incurred increased at a slower rate than gross claims thanks to the structure of reinsurance protection.

50 GRI 201-02.

ANNUAL REPORT 2022

Operating expenses	Net investment income
0%	1.9%
1.4	4.6
2.6	0.5
5.1	1.6

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Expenses relating to investment portfolio

Operating costs, reinsurance income, expenses and net investment income exchange differences (reinsurance)

A N N U A L R E P O R T 2022

Net investment income 2021 was impacted by the new 2022 financial market conditions, which, in the Slovenian segment, mainly contain bond investments valued through other comprehensive income.

8.1.2 Non-life

3.5	2.2	5.7	2.3

Gross profit or loss, resulted in an increase of EUR 1.6 million in the non-life insurance (€m).

Other income and expenses of the Slovenian non-life loss from the change in fair value of assets designated.

S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

ANNUAL REPORT 2022

Unconsolidated

Gross	%	30.2%	28.6%	29.0%	%	31.3%	%	4%	15.3%	9%	4.4	0.9	0.2
			non-life
							insurance	gross		non-life	premiums	premiums	by	class	of	Savaof	business	Insurance	Group	members
																					2022	EUR	SUSTAINABILITY	FINANCIAL	A p p e n d i c e s	BUSINESS	REPORT	STATEMENTS	REPORT	WITH	NOTES	2022	2021	Index
andL	motor	vehicles	€434.8m	€477.6m	Zavarovalnica	Sava,			Slovenian		part	(non-life)								376,611,675	350,060,589	107.6

A N N U A L R E P O R T 2022

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

In the Slovenian non-life segment, costs due to rising inflation rose by EUR 10.9 million. Net claims incurred was already explained in motor insurance, as the gross result of the portfolio result.

Motor claims frequency also rose due to weather-related loss incurred in Croatia and fewer claims reported and set to events in business May, June, and August mainly 2022, reflecting a drop in property accident insurance claims. The increase of EUR 4.5 million in net claims incurred grew because of provisions due to the major settlement loss events of claims, and the exclusion of certain risks and a drop in group accident claims.

A N N U A L R E P O R T 2022

Acquisition

0.7%	2.4%	2.4%	1.0%	1.1%	1.1%
2021	Slovenia	costs	2022	increased	by
6.2%	International	2022	mainly	in	the
2021	Total	2022	non-life	Other	operating
expenses	rose	by	9.0%	in	2022

Net investment income

28.4%	44.6%	328.0%	42.4%	30.9%	1.4%
5.7	3.6	2.4	2.3	5.9	8.1
Slovenia	78	International	Total	non-life	foreign
non-life	insurers,	as	a	result	of
the	increase	driven	by	the	payout
of	a	cost-of-living	bonus	and	in-

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S

R E P O R T

S TAT E M E N T S

R E P O R T

W I T H

N O T E S

Gross investment premiums written and net investment income of the investment portfolio of non-life insurance business totalled EUR 5.9 million in 2022, down by EUR 2.2 million from 2021. Net investment income was lower mainly as a result of higher expenses grew more slowly than premiums, which is Slovenian non-life insurers and by 2.2 p.p. for foreign expenses for changes in the fair value of FVTPL assets.

why the expense ratio of the non-life segment im- non-life insurers. The investment return was 1.0% in 2022. improved by 0.5 p.p. compared to 2021, by 0.4 p.p. for

8.1.3 Life

ANNUAL REPORT 2022

Gross premiums written by Slovenian life insurers decreased by 4.9% year on year, mainly due to lower sales.

€172.2m single-premium payments at Vita compared to 2021, €178.7m net premiums earned.

Non-Slovenian life insurers managed to increase gross when they were above average due to the announced deaths and surrenders, as they were offset by new.

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

ANNUAL REPORT 2022

Unconsolidated gross life claims paid by Sava Insurance Group companies

Year	2022	2021	Index
Net claims incurred, life insurance	61,622,765	79,756,136	77.3

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

Gross expense ratio, life segment

Slovenia	International
20.3%	37.6%
37	22.6%
21.3%	21.5%
.7%

Operating expenses

Operating expenses, life segment

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T

S TAT E M E N T S R E P O R T W I T H N O T E S

2.4%

1.6 2.4%

1.6%

2021

2022

2021

2022

2021

2022

Net investment income and asset management

A N N U A L R E P O R T 2022

14.5

15.6

8.0

1.0

9.0

Slovenia 82

International

Total life

+5.5%

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T

S T A T E M E N T S

R E P O R T W I T H N O T E S

Investment return and net investment income (life insurance) (€m)

Annuity part

A N N U A L R E P O R T 2022

The liability funds of the Slovenian pension company -18.8% on mutual funds (2021: 15.9%). The negative Accumulation part generated a -5.7% return in 2022 (2021: 3.4%), and returns in 2022 are due to adverse developments in financial markets and asset management related to the war in Ukraine, recession by the North Macedonian pension company made expectations, stagflation and increases in base rates.

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T

S T A T E M E N T S R E P O R T W I T H N O T E S

A N N U A L R E P O R T 2022

8.1.5 Other

Net investment income	2021	2022
-2.0%	1.4%	-0.9%
Income relating to investment portfolio	84
Expenses relating to investment portfolio	1.8% + 2
Net investment income relating to investment portfolio	51

The following contributed to the significantly better (pensions and asset management segment) (€m)

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Gross	Net	%	2022	2021	2022	2021	2022	2021	2022	2021
premiums	premiums	premiums	earned	written	written	by class	of business	by	by	class of insurance
€199.4m	€199.4m	€165.5m	€190.1m	€190.1m	€162.7m	Non-life insurance	Fire	Land motor vehicles	Net premiums earned
Gross premiums written	Proportional	Other	Marine	premiums	damage insurance	reinsurance	to property	written	Non-proportional	Motor
General liability	liability	Facultative	Other	Other	reinsurance

EUR	2022	2021	Index
Non-Group	120,835,430	112,059,053	107.8
Group	78,569,899	77,992,670	100.7
Total	199,405,329	190,051,724	104.9

Net premiums earned	EUR							2022		2021	Index
Gross premiums written							199,405,329		190,051,724		104.9
Net premiums earned							165,480,370		162,736,587		101.7

Gross premiums written outside the Group increased by EUR 8.8 million, driven by positive price developments in global reinsurance markets and the capture of new business opportunities.

A N N U A L R E P O R T

2022

S U S T A I N A B I L I T Y

F I N A N C I A L A p P e n d i c e s

B U S I N E S S R E P O R T

S TAT E M E N T S R E P O R T W I T H N O T E S

Gross	Net	0%	58.7%	48.0.6%	73.0%	9%	25.8%	64.6%	60.9%	0%	5%	12.6%	3%	0.1%	0.1%	1.0%	19.5%	727.%	15.10.11.11.1%	.5%	115.3%	11.21.1%
claims	2022		2021	2022	2021	2022	2021	incurred	paid	paid	by	by	by	class
Net claims incurred	€106.2m	€129.2m	€129.2m	€99.2m	€99.2m	€111.6m	Gross claims paid	Non-life insurance	mio EUR	Fire	Marine insurance	Other	Land motor damage	vehicles	to property
Non-Group	70,639,487	58,451,181	120.9	Land	Proportional	Motor vehicles	vehicle	reinsurance	own liability	damage	Group	58,596,536	40,791,635	143.6	Motor	Non-proportional	General liability	liability	reinsurance
	Total															129,236,023	99,242,817	130.2	Other	Facultative	Other	reinsurance

Net claims incurred, excluding the effect of exchange differences

Gross claims paid	129,236,023	99,242,817	130.2
Net claims incurred	106,311,685	107,116,357	99.2

The higher gross claims paid are due to payment of an effective reinsurance programme to protect against claims from previous underwriting years for non-Group large claims, which thus did not have a material impact on the final result. As these were paid out of established claims provisions, they had no significant impact on the final result. Sava Re’s net incurred loss ratio was 64.5% in 2022, reflecting an improvement of 0.8 p.p. compared to the previous year.

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Operating	Net investment	expenses	income
Due to the prescribed scheme, net income and return on investment are shown be-

ANNUAL REPORT 2022

Income, Expenses and Net Investment Income of the Investment Portfolio

Compared to 2021, the investment portfolio’s income excluding the effect of exchange differences grew by EUR 1.4 million, reflecting higher interest dividends from subsidiaries. Expenses related to the investment portfolio rose by EUR 2.8 million compared to 2021.

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

EUR	2022	2021	Absolute change

Financial position of the Sava Insurance Group and Sava

ANNUAL REPORT 2022

89 SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS REPORT WITH NOTES

A N N U A L R E P O R T 2022

The investment portfolio decreased by EUR 161.4 million compared to the end of 2021, mainly due to sales and maturities. The value of shares and mutual funds also decreased because of disposals. Funds available and cash and cash equivalents were reinvested in government bonds.

The investment portfolio of the Sava Insurance Group is made up of financial investments, investment property, and financial investments in associates.

S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T

S T A T E M E N T S W I T H N O T E S

Negative change in the fair value reserve of the bondable investments is due to the increase in the balance of investment property.

A N N U A L R E P O R T 2022

9.1.1.3 Receivables of fixed-rate investments

9.1.1.4 Investment contract assets

Receivables increased by EUR 24.2 million, or 16.2%, compared to year-end 2021 (2021: a decrease of EUR 3.9 million, or 2.6%, from year-end 2020).

Investment contract assets comprise liability fund assets relating to the group of life cycle funds managed by the Sava Pokojninska pension company for the benefit of the group.

	As % of total	As % of total	Change in structure (p.p.)
31 Dec 2022
31 Dec 2021

S U S T A I N A B I L I T Y

F I N A N C I A L A p P e n d i c e s

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

9.1.2 Equity and liabilities

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Balance and composition of equity and liabilities

9.1.2.1 Technical provisions

9.1.2.3 Shareholders’ equity

A N N U A L R E P O R T 2022

Shareholders’ equity (1) decreased by EUR 92.1

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

Gross technical provisions (3) mainly due to a decrease in the fair value reserve result of the rise in required yields because of the

9.2.1.1 Investment portfolio

The Sava Re investment portfolio totalled EUR 687.9 million as at 31 December 2022 (31 December 2021: EUR 688.6 million). The investment portfolio is made up of financial investments (7), investments in subsidiaries and associates (6), investment property (5), and cash and cash equivalents.

Sava Re

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

The Composition of investment portfolio fixed-rate investments declined by EUR 0.7 million as part of the investment portfolio accounted for 41.9% of financial investments compared to the end of 2021. The largest change in the investments and increased compared to year-end 2021.

Change in S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T

S TAT E M E N T S R E P O R T W I T H N O T E S

Value of investments	As % of total
31 Dec 2022	31 Dec 2021
Corporate bonds
Government bonds
Alternative investments

The decrease in corporate bonds was driven by in the balance of alternative investments, specifically...

9.2.2 Equity and liabilities

9.2.2.1 Shareholders’ equity

A N N U A L R E P O R T 2022

Shareholders’ equity (1) increased by 2.9%, or EUR 10.7 million, compared to year-end 2021, due to the net profit for the period, the decrease in the fair

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

9.2.3 therO investments of Sava Re

ANNUAL REPORT 2022

97 the insurance industry

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS REPORT WITH NOTES

Sava Insurance

ANNUAL REPORT 2022

Human resources management

In the Sava Insurance Group, we are aware of our responsibility to our employees.

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Group employs 9522.

10.3 Recruitment and staffing levels

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

10.3.1 Number of employees as at

Number of employees by number of employment contracts on the last day of the year

ANNUAL REPORT 2022

Year	2022	2021
Zavarovalnica Sava (SVN)	1,277	1,297

A N N U A L R E P O R T 2022

Sava Insurance Group

S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

Number of employees	by type of employment
							part-time	full-time
as at year end												58

2022

2021

A N N U A L R E P O R T 2022

Sava Insurance Group

Sava Re

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T

S TAT E M E N T S R E P O R T W I T H N O T E S

Employees covered by collective bargaining agreements as at year end									2022			2021
											60

A N N U A L R E P O R T 2022

Employees by age group as at year end

Age Group								2021
Number of Employees	Percentage	Number of Employees	Percentage
Under 30					62	15%	58	14%
30-50	150	35%	145	36%
Over 50	200	50%	197	50%

Sava Insurance Group

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T

S TAT E M E N T S R E P O R T W I T H N O T E S

The composition is similar to previous years.

A N N U A L R E P O R T 2022

Employees by years of service in company as at year end

Sava Insurance Group

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

2022	2021	2022	2021

Absenteeism

Annual Report 2022

Sustainability Financial Appendices

Business Report Statements with Notes 2022

Absenteeism is calculated as the number of lost work-

Absenteeism rate	67
Absenteeism rate	68

Work-related injuries

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Sava Insurance Group

Overview of employee arrivals and departures by gender in current year

ANNUAL REPORT 2022

Sava Insurance Group

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Gender
Count	Percentage	Count	Percentage
Male
Female
Total

Parental Leave

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Employees on parental leave

10.4 Employee training and development

Seminar for Daat ionProtect Officers (DPOs) from all Group companies and their deputies.

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

Sava Insurance Group

Sava Re

Sava Insurance

S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

Gender	Number	Average hours of employee training
2022	110	73
2021

10.5 Management and motivation

A N N U A L R E P O R T 2022

10.5.2 Never Alone project

S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

The employment market is very competitive and created a visual brand image for internal communication and the employee value proposition for every company aspires to attract staff with relevant.

10.5.3 Employee benefits

Benefits for employees

A N N U A L R E P O R T 2022

S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

The Sava Insurance Professional Group offers numerous benefits to our employees. Each employee is necessary to recharge during their time off, which means that paid leave is offered for all employees.

A N N U A L R E P O R T 2022

10.5.4 Annual Performance Appraisal

Employees involved in annual performance appraisal from Group companies of the Sava Insurance Group brought together on 25 May in Pristina, Kosovo.

Other Group companies offer similar activities and benefits.

S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

Corporate volunteerism has been a tradition in all Sava Group companies.

Number of interviews: 78

10.5.5 Health and safety at work

In 2022, Sava Re continued to provide a sophisticated breakfast for colleagues at llyriaI Life, Kosovo.

Throughout the Sava Insurance Group, companies take improved health promotion programme. Day was again organised and attended by 105 employees (71.43%).

10.5.6 Other

10.6 Organisational structure

Office	Risk	Financial management of Reinsurance
Strategic	the Human	Risk management operations
Group	Information	Reinsurance Support Insurance Group Corporate Business control resources planning Internal Accounting & modelling
Actuarial technical	asset-liability	Reinsurance departments and operations
departments technology	centres operations	board audit
and finance	management	asset centre accounting
controlling	and management	management of compliance

A N N U A L R E P O R T 2022

115 S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

RISK MANAGEMENT

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS WITH NOTES

11.1.1

skRi management organisation

The management board of each company plays a key role and bears ultimate responsibility for the effectiveness of the processes which they are responsible for. It is conducted in a manner that ensures the operational performance of the established risk management processes and that reduces or eliminates risks, and that the framework is observed.

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

Systematic risk management includes an appropriate alignment with the Group’s standards and the works laid down in the risk strategy.

A N N U A L R E P O R T 2022

Apart from the key functions, the second line of defence was introduced in the entire Sava Insurance Group, including in non-EU based Group companies.

Second line of defence

Internal audit

Information Own assessment and management of solvency

Stress Testing

Continuous Analysis Underwriting tests

Investment

Underwriting

Poročila Register za upravljanje tveganji

ORSA

Projections of policy compliance process limits and profile analysis

Risk management processes

Risk strategy

S U S T A I N A B I L I T Y

F I N A N C I A L

A p p e n d i c e s

B U S I N E S S R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Such a committee also addresses risks at the Company levels. In the context of the risk management system, the holders are responsible for the internal audit function.

11.1.2.1 Risk strategy

The Group seeks to operate in compliance with its stress tests and scenarios, and professional judgment.

ANNUAL REPORT 2022

119

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BUSINESS REPORT STATEMENTS WITH NOTES

Risk management processes are incorporated into business strategy and meet the key strategic objectives.

Individual Group companies set operational limits, such three lines of defence of the risk management process while maintaining an adequate capital level. With this in

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120

Risk monitoring be more cost-effective than mitigation of the potential impact should the risk materialise, if the likelihood of such an event and all its financial impact are fully taken into account. This, the risk management function, in cooperation with risk managers, prepares a risk report covering the individual company’s entire risk profile.

Risk monitoring is conducted at several levels: at the level of individual organisational units and risk owners, first discussed by the company’s risk management.

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

11.2 Capital management

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121 SUSTAINABILITY

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Appendices

BUSINESS REPORT

STATEMENTS

REPORT WITH NOTES

11.3 Material risks of the Sava Insurance Group

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122 SUSTAINABILITY

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STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

This is the risk that either the technical provisions are insufficient to meet the obligations arising from (re) insurance liabilities resulting from changes in the level of long-term scenarios. Other underwriting risks, insurance contracts due to inadequate methods, inappropriate or volatility of lapse rates (rate of early contract termination), economic environment risk and policyholder behaviour.

Reserve risk

This is the risk of loss or adverse change in the value of the company.

Lapse risk

This is the risk that the Group and the company pay more attention to them also by analysing.

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

11.3.1.3 Health underwriting risk

Health underwriting risks are divided into risks arising out of health insurance pursued on a similar technical basis as non-life insurance (NSLT health insurance) and interest rate risks. This is the risk that the Group or the Company will be exposed to losses resulting from fluctuations in interest rates. These can cause a decrease in investments or an inability to meet all its financial obligations.

11.3.2.2 Liquidity risk

This is the risk that, owing to unexpected or unanticipated high obligations, the Company will not be able to meet all its financial obligations.

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124

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FINANCIAL

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BUSINESS REPORT STATEMENTS WITH NOTES

Internal Auditing in the Sava Insurance Group

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125 SUSTAINABILITY

FINANCIAL

Appendices

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STATEMENTS WITH NOTES

Development of information support

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126 SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS WITH NOTES

ANNUAL REPORT 2022

Living sustainably is living well.

We build

BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS

REPORT WITH NOTES

long-term corporate social responsibility in continuous dialogue with our stakeholders, supporting global sustainability goals, with a particular focus on climate change, the health and well-being of our customers, employees and the wider community.

Sustainability Report

Annual Report 2022

Business Financial Appendices

Sustainability Report Statements with Notes

The consolidated annual report refers to a single financial and calendar year and is prepared in accord-

14.1 Development Strategy of the ANNUAL REPORT 2022

BUSINESS FINANCIAL Appendices SUSTAINABILITY REPORT STATEMENTS WITH NOTES

Sava Insurance Group for 2020–2022

129

14.1.1

yStrateg implementation in of investment decisions on the sustainability fac- in accordance with the Taxonomy for 2021, based

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130

tors of the Sava Insurance Group was published on available data and an estimate of Taxonomy-eligible revenues from activities. The activities to ensure disclosures in the financial and financial-insurance quality and relevance of the data needed for

2022 BUSINESS FINANCIAL

A p p e n d i c e s S U S T A I N A B I L I T Y REPORT STATEMENTS REPORT WITH NOTES

Sava Re’s website, and the relevant pre-contractual

A N N U A L R E P O R T 2022

Topics

Sales

Digitalisation

Network Aspects

Assessment of Operations

In Terms of Stakeholders

By Employees

Importance of Stakeholders

For Sava Insurance Group

Relations with Stakeholders

Customer Concern for Satisfaction

The Natural Environment

Business Financial Appendices

Sustainability Report Statements

Report with Notes

Compliance

Climate Change

Products Quality

Suppliers That Are Transparent

14.2.1 Types of stakeholder involvement

ANNUAL REPORT 2022

BUSINESS FINANCIAL Appendices SUSTAINABILITY REPORT STATEMENTS REPORT WITH NOTES

We cultivate responsible and sincere relations with all our stakeholders. In doing so, we follow the recommendations and rules of

A N N U A L R E P O R T

2022

Suppliers

Tenders
Selection of the most appropriate supplier in accordance
Business Financial Appendices
Sustainability Report Statements with Notes

(services and materials)

- Invitations to participation criteria

14.3 Economic aspect

ANNUAL REPORT 2022

BUSINESS FINANCIAL Appendices SUSTAINABILITY REPORT STATEMENTS WITH NOTES

14.3.2 Guidelines for Reporting on the Principal Adverse Impacts on Sustainability

the adult entertainment industry, gambling, mining

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135 factors (the “inside-out” perspective).

energy production from coal or shale oil, the military investment

BUSINESS FINANCIAL

Appendices

SUSTAINABILITY REPORT STATEMENTS WITH NOTES

industry and controversial arms manufacturers.

The management board of Sava Re first published the

14.3.2.1 eTh Investment Process and the

ANNUAL REPORT 2022

Value 14.3.2.3 of investments

Eligibility aligned with the sustainability policy as at 31 December 2022 the transition to a circular economy;

Value of investments

Value of

BUSINESS FINANCIAL

Appendices SUSTAINABILITY REPORT STATEMENTS WITH NOTES

In 2020, Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of the protection of healthy ecosystems.

Value of non-aligned investments with

the Taxonomy

pollution prevention and control;

ANNUAL REPORT 2022

Data Guaranteed on Taxonomy UL investments eligibility

As of 31 December 2022 covering unit-linked life insurance liabilities for which insurance companies guarantee the unit value.

Table of Investments

As % of total	As % of portfolio
EUR	Value
Taxonomy eligible investments with	Taxonomy eligible investments as % of

BUSINESS FINANCIAL APPENDICES SUSTAINABILITY REPORT STATEMENTS REPORT WITH NOTES

14.3.2.4 ESG criteria for investments

The Sava Insurance Group considers ESG investments projects and promote development in accordance with (as a rule) an exclusion criterion when deciding to include bonds issued to fund green environmental their environmental and social policies. investments in funds and direct projects. Currently, projects (so-called green bonds) and sustainable bonds alternative investments in the portfolios of the

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138

BUSINESS FINANCIAL

Appendices SUSTAINABILITY REPORT STATEMENTS REPORT WITH NOTES

that these organisations invest in environment-friendly non-compliance with the ESG guidelines constitutes

A N N U A L R E P O R T 2022

Group’s ESG integrated investments as at 31 December 2022

The year 2022 was less turbulent than the previous year for the Sava Insurance Group in relation to total investments.

B U S I N E S S

F I N A N C I A L

A p p e n d i c e s

S U S T A I N A B I L I T Y R E P O R T

S T A T E M E N T S R E P O R T W I T H N O T E S

Disasters, although international reinsurance markets called up or were exposed to a number of major loss events.

Sustainability

aspects in products writing of environmental, social and governance risks in guidelines are expected to be seen in the first half

SavaSava OsiguranjeInfond (SVN): (MNE): Awards

Company presented receives by the theMoje Employers’ Finance magazine. Association

ANNUAL REPORT 2022

140 non-life insurance. 2023.

Business Financial Appendices Sustainability REPORT STATEMENTS REPORT WITH NOTES

its products with a strong sustainability component. In addition to the Group’s insurers, which will use

To achieve this goal, the management board of Sava Re expanded some of

the insurance of solar power plants already

14.3.3.2 ANNUAL REPORT 2022

The Sava Insurance Group offers the following insurance coverages:

BUSINESS

FINANCIAL

Appendices

SUSTAINABILITY REPORT STATEMENTS REPORT WITH NOTES

Consolidated gross premiums written and consolidated net premiums earned by class of business*

Consolidated gross premiums written and net premiums earned by class of business*

ANNUAL REPORT 2022

Gross premiums written	Net premiums earned
BUSINESS	FINANCIAL
A p p e n d i c e s	S U S T A I N A B I L I T Y REPORT STATEMENTS WITH NOTES
EUR	2022
Share	2022

A N N U A L R E P O R T 2022

14.3.4

ationsRel with suppliers and quarterly basis. The procurement procedure rules entire country in which its head office is situated.

have an appended questionnaire on the sustainability of the purchasing policy.

B U S I N E S S

F I N A N C I A L

A p P e n d i c e s

S U S T A I N A B I L I T Y R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

Although some of the purchases are made outside the Company, which is intended for suppliers whose their home country, they are mainly limited to bids are collected through tenders (the value of goods).

14.3.5 Financial Assistance Received

14.3.6 Definition of Other

14.3.7 Tax

104 SavaSava Re:Oiguranjes Health Day (SRB): on the Belgrade slopes. Half Marathon, a race for families.

ANNUAL REPORT 2022

144 from government 103 government incentives

BUSINESS FINANCIAL APPENDICES SUSTAINABILITY REPORT STATEMENTS REPORT WITH NOTES

In line with its sustainable development strategy

2022 ANNUAL REPORT

145 EUR

NORTH BUSINESS FINANCIAL

APPENDICES SUSTAINABILITY REPORT STATEMENTS WITH NOTES

Tax jurisdiction / type of tax	Slovenia	Croatia	Montenegro	Macedonia	Kosovo	Serbia

14.4 Social aspect

ANNUAL REPORT 2022

BUSINESS FINANCIAL Appendices

SUSTAINABILITY REPORT STATEMENTS WITH NOTES

14.4.3

Sava Insurance Group (Zavarovalnica Sava, Vita and Sava Pokojninska) provide information on the adverse impacts of their investment decisions on sustainability factors that should be taken into account by insurance intermediaries.

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147

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S TAT E M E N T S

R E P O R T W I T H N O T E S

information 108

14.4.3.1

communication and information in pre-contractual disclosures for their financial investment products as part of their duties toward insurance undertakings distributing insurance-based.

14.4.3.3 The Sava Insurance Group

In December 2021, the Sava Insurance Group made its first public appearance with its new comprehensive slogan: "Good Among People".

14.4.4 Compliance

The Sava Insurance Group is obligated to comply with our brand, especially on social media. With a number of customer satisfaction and customer relations are at the centre of every business decision in the Sava Insurance Group.

ANNUAL REPORT 2022

BUSINESS FINANCIAL

Appendices

SUSTAINABILITY REPORT

STATEMENTS WITH NOTES

14.4.4.2 Exchange of information within the reporting system established at the Group level

14.4.5 Complaint resolution

A N N U A L R E P O R T 2022

ononEnvirMentalCooperati with Clean-up Ecologists Campaign Without Borders Croatia: in Croatian Maribor colleagues on the inter- are 149 Sava Insurance Group facilitates the respective business function holders in oinedionajnatl by Plastic football Pirates players project of FC and Rudes, the whose Global main Brand sponsor Inventory, is the where Cro-

B U S I N E S S

F I N A N C I A L

A p P e n d i c e s

S U S T A I N A B I L I T Y R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

ianuesatvolnter branch use of nets Zavarovalnica to collect Sava. litter and weatr samples, providing data managing risks associated with redesigning the business.

To ensure compliance across the Group and continuous improvement of the compliance system, all compliance processes that were introduced due to amended legal requirements are relevant to raising awareness on plastic pollution.

When handling complaints submitted by policyholders.

14.4.6

airF business practices

Sava Re has also signed the Slovenian Corporate Integrity Guidelines, which commits the Group to creating and managing conflicts of interest that may arise.

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150

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R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

a work environment grounded in a culture of corporate performance of the duties and tasks of individuals.

The values and principles of ethical conduct are de-integrity, zero tolerance for illegal and unethical conduct.

the Company by establishing and implementing

14.4.8 ionProtect

The Sava Insurance Group companies have in place internal acts that prescribe the procedures and measures for the protection of personal data and the management of risks that personal data processing in business.

14.4.9 spectRe

for human rights

ANNUAL REPORT 2022

Life Employee Celebration in December: A merry December

Special prizes are awarded to the best employees.

BUSINESS

FINANCIAL

Appendices

SUSTAINABILITY REPORT STATEMENTS WITH NOTES

The Sava Insurance Group is aware of the wider societal implications.

14.5 Responsibility to the community

ANNUAL REPORT 2022

BUSINESS FINANCIAL Appendices

SUSTAINABILITY REPORT STATEMENTS WITH NOTES

Zavarovalnica Sava

A N N U A L R E P O R T 2022

In 2022, special mention should be made of donations Zavarovalnica Sava invests in prevention, mainly to help with the Ukrainian refugee crisis; companies vent fire hazards and increase road safety. At the sports at all levels – from recreation to professional in the Slovenian part of the Sava Insurance Group re- and national levels, it supports fire-fighting activities, sports.

The most notable contributions in 2022 went sponded at the start of the war in Ukraine and raised while its long-standing cooperation with the national.

14.5.3 Corporate volunteerism

Various formats of volunteerism were carried out, in- Sava Re’s code of reference is the Slovenian Corporate Governance Code for Listed Companies.

Animal Shelter:

Volunteers walk dogs, groom cats and clean, including socialising with the elderly and people with special needs, caring for animals, cleaning up the environment, lawn care and blood donations.

Heart for the World initiative

Sort food.

14.5.5 Membership in associations

14.6 Environmental aspect

ANNUAL REPORT 2022

BUSINESS FINANCIAL Appendices

SUSTAINABILITY REPORT STATEMENTS WITH NOTES

14.6.2

Energy consumption 128

The rationale behind maintaining or replacing systems for their efficient technical management.

ANNUAL REPORT 2022

isPrMaribor Animal Adventure Shelter: Playground: Volunteers Autumn bring dog projects food and and colourful feed and pre- pet 156

Investments is always also assessed in terms of energy (CNS, energy management). Property management.

Volunteers protect wooden structures and trayionssparat dogs for the winter. Volunteers rake autumn leaves.

BUSINESS FINANCIAL

Appendices

SUSTAINABILITY REPORT STATEMENTS WITH NOTES

Energy consumption and energy efficiency are envi- efficiency. is thus gradually being upgraded with a central control system that is integrated into renovations and newly.

14.6.3 bonCar footprint of the Sava

Emissions from these sources have been taken into account: Sava Re and Sava Pokojninska calculated their carbon footprint already in 2019 and were joined in 2020.

A N N U A L R E P O R T 2022

Insurance Group for 2022

B U S I N E S S

F I N A N C I A L

A p p e n d i c e s

S U S T A I N A B I L I T Y R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Direct emissions due to the use of fossil fuels for the heating of offices and fuel combustion in companies: Zavarovalnica Sava, Sava Infond and Sava Penzisko Društvo. A pilot group-wide carbon footprint calculation.

A N N U A L R E P O R T 2022

Percentage 44% 32% 24 expected, Electricity of mainly emissions sources Heating due to by the from emission Use resurgence of electricity private volume of Air business consumption, transport in all travel companies Travel in heating the using post-pandemic and Travel business – taxi, period, travel Public our passenger carbon footprint increased in 2022 compared to 2021.

Index

SCOPE	2022	2021	2022/2021
1. Electricity consumption	1,278.70	1,165.65	110
1.1 Heating	371.83	331.53	112
1.2 Business travel	906.87	834.12	109
2. Indirect emissions – Scope 2	2,058.88	2,145.94	96
2.1 Electricity consumption (for electrical and electronic equipment, lighting, space heating and cooling)	1,583.18	1,664.23	95
2.2 District heating consumption for space heating	475.71	481.71	99
3. Indirect emissions – Scope 3	263.05	60.15	437
3.1 Business travel using vehicles not owned by the reporting entity	263.05	60.15	437
3.1.1 Motor vehicles	116.52	49.38	236
3.1.2 Aircraft	144.89	10.39	1394
3.1.3 Public passenger transport – bus and rail	0.64	0.12	519
3.1.4 Taxi, shuttle	1.00	0.26	384
Total	3,600.64	3,371.74	107

14.7 Development Strategy of the Sava Insurance Group for 2023–2027

ANNUAL REPORT 2022

BUSINESS

FINANCIAL

Appendices

SUSTAINABILITY REPORT

STATEMENTS REPORT WITH NOTES

159

Select sustainability performance indicators

ANNUAL REPORT 2022

160 BUSINESS

FINANCIAL

Appendices

SUSTAINABILITY REPORT STATEMENTS REPORT WITH NOTES

Select Sava Insurance Group sustainability performance indicators

Select Sava Re sustainability performance

ANNUAL REPORT 2022

FINANCIAL

Among good people everyone counts. No

BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS WITH NOTES

One is just a number here. As we take stock of another successful year, we are proud to say that we measure our success not only by our bottom line, but also by the payouts we make to our customers, providing them with financial security and helping them get back on their feet.

STATEMENT OF MANAGEMENT’S RESPONSIBILITY

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

report

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS

REPORT WITH NOTES

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS

REPORT WITH NOTES

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS

REPORT WITH NOTES

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS

REPORT WITH NOTES

Financial Statements

Annual Report 2022

Business Sustainability

Appendices

Financial Report Statements Report with Notes

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Receivables	17.8.11	174,160,961	149,940,870	91,271,934	79,803,172

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

Unearned premiums	229,798,730	207,022,452	52,992,395	52,775,034

16.2 Income statement

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Change in other technical provisions					17.8.34	EUR
						2022			2021	2022	2021
							18,514,205			23,872,769	-190,091			723,39

Sava Insurance Group

Sava Re

16.3 Statement of other comprehensive income

ANNUAL REPORT 2022

173 BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

16.4 Cash flow statement

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

174

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

Change in other liabilities (except unearned premiums)	-5,640,174	10,721,974	55,904

Sava Insurance Group

Sava Re

EUR

Note	2022	2021	2022

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Net cash from/used in investing activities (a + b)	-21,620,305	-97,019,419	22,631,063

Sava Insurance Group

Sava Re

Note	2022	2021

16.5 Statement of changes in equity for 2022

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

III. Profit reserves

ANNUAL REPORT 2022

178

Legal reserves

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

and reserves

16.6 Statement of changes in equity for 2021

ANNUAL REPORT 2022

179 BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

III. Profit reserves

ANNUAL REPORT 2022

Legal reserves

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

and reserves

ANNUAL REPORT 2022

Notes to the financial statements

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Educational Profile of Employees

ANNUAL REPORT 2022

182

Sava Insurance Group

Sava Re

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

2022	2021	2022	2021

17.2 Business combinations and overview of Group companies

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Subsidiaries as at 31 Dec 2021

ANNUAL REPORT 2022

Equity as at

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Activity	Country of incorporation	Assets	Liabilities	31 Dec 2021

Overview of companies with non-controlling interests

ANNUAL REPORT 2022

185 Sava Osiguruvanje

Sava Station

TBS Team

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	2022	2021	2022	2021	2022

17.3 Consolidation principles

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

17.4 Significant accounting policies

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

17.4.4

of major accounting Financial investments, investment contract assets based on information gathered in renewal packs and assets held for the benefit of policyholders who then revised quarterly based on experience. Tak estimates, sources of

A N N U A L R E P O R T

2022

188

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

bear the investment risk: Classification, recogni-tion, measurement and derecognition, investment premiums are estimated as the difference between

17.4.7 Goodwill

The discount rate is determined as the cost of equity (COE), using the capital asset pricing model (CAPM). The bases for the testing of value in use are prepared in several phases: In phase one, the Company prepares five-year projections of performance results for the testing of value in use.

Goodwill arises on the acquisition of subsidiaries. In equity premium, and insurance business prospects ap-company as part of the regular planning process.

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

A N N U A L R E P O R T 2022

17.4.8

eProperty, Right-of-use assets and equipment and lease amount, the underlying asset is not impaired. On subsequent measurement, in use is as assessed the initial cost of a right-of-use cash-generating asset unit, is reduced with any accumulated depreciation constituting a cash-generating unit.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

Items of property, plant and equipment are initially adjusted for any remeasurement of impairment losses and any accumulated as a whole.

A N N U A L R E P O R T 2022

17.4.10

The lessee’s incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the additional asset were leased on a stand-alone basis. A lease modification is deemed a separate lease only if it involves the addition of the right to use one or more current non-assets held at a price that would apply if the sale.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

17.4.12 Investment property

17.4.13 Financial investments

If impairment is necessary, an impairment test is carried out for each individual investment by calculating the recoverable amount of the cash-generating subsidiaries and associates.

ANNUAL REPORT 2022

Investment property comprises assets not used directly based on the value in use. Cash flow projections.

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

Financial assets are derecognised when the contractual premiums is retained by cedants as guarantee for pay rights to the cash flows from the financial assets held for the benefit of policyholders who bear the ment of future claims, and generally released after one year. These deposits bear contractually agreed interest. qualifies for derecognition in accordance with IAS.

Business Sustainability

Appendices

Financial Report Statements Report With Notes

A N N U A L R E P O R T 2022

For the valuation the Company uses the closing price. Assets and liabilities are classified in accordance with quoted prices for similar financial investments on the stock exchange or the published CBBT bid IFRS 13 based primarily on the availability of market markets that are not active.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Price for debt investments (according to the defined information, which is determined by the relative levels quoted prices for identical or similar financial investments Bloomberg methodology) as the unadjusted quoted of trading identical or similar instruments in the mar- vestments in markets that are not active.

17.4.14.4 Impairment losses on investments

Unquoted shares

If the second condition above is met, an impairment loss on a financial asset other than at fair value through profit or loss is recognised in profit or loss as the difference between the potential payment out of the bankruptcy estate and the cost of the investment. An impairment loss is incurred only if there is objective evidence of impairment as a result of liquidation and the Group can demonstrate that they do not have shares for any regulated securities market.

A N N U A L R E P O R T 2022

195

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

A N N U A L R E P O R T 2022

17.4.15 s’Reinsurer share of technical

17.4.16 mentInvest contract assets

Sava Pokojninska initially recognises investment property assets in respect of pension fund business under provisions and liabilities.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

Investment contract assets using the cost model, any transaction costs. The following measurements

17.4.17 Receivables

Recourse receivables are recognised as assets provided that, on the basis of a recourse claim, an appropriate legal basis exists (a final order of attachment, a written agreement with or payments by the policyholder or valuation). In case of litigation, such receivables are recognised that disputable; allowances are established for such receivables.

A N N U A L R E P O R T 2022

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S

R E P O R T W I T H N O T E S

Receivables consist mainly of premium receivables due and charged against operating expenses from agreement with or payments by the policyholder.

17.4.21 Fair values of assets

ANNUAL REPORT 2022

198 BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Determination of fair values

A N N U A L R E P O R T 2022

17.4.22

Shareholders’ equity Profit reserves also include catastrophe equalisation reinsurance policies, which are insurance contracts.

reserves set aside pursuant to the rules on technical pro-non-proportional reinsurance contracts provide visions and capital reserves as calculated by appointed actuaries. These are tied-up reserves and their distribution in case of significant additional pay-outs in case of loss events, they also qualify as insurance contracts.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

A N N U A L R E P O R T 2022

Provisions for outstanding claims (claims provision)

Provisions are established in the amount of expected liabilities for in-business and form of reinsurance as well as development benefit of life insurance.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

These comprise provisions both for reported incurred but not settled claims, including loss adjustment triangles for underwriting years by accounting quarters; policyholders who bear expenses.

The IBNR provision is then established at the amount of

A N N U A L R E P O R T 2022

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

The liability adequacy test is performed on the policy flows, the entire deficiency is recognised in profit or loss. For future periods, cash flows for expenses have and/or product level. If the test is performed at the policy level, the results are shown at the product-level, with an additional provision established.

Mortality is usually based on data supplied by the local products grouped by class of business. A company gen-

17.4.28 Other provisions

The probability of an employee staying with the Group

17.4.31 Net premiums earned

A N N U A L R E P O R T 2022

includes both the probability of death and the probability of termination of employment relationship.

Employee benefits

include severance pay upon re-

Group companies use the accrual basis method

Assumptions

relating to future increases in salaries,

17.4.33

Investment income and Investment expenses include:

17.4.34

Operating expenses

ANNUAL REPORT 2022

interest expense;

expenses

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

net exchange losses;

Operating expenses include:

expenses due to changes in fair value and losses

ANNUAL REPORT 2022

204

Other income comprises income from investment property, income from property, plant and equipment.

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Income tax expense for the year comprises current and deferred tax expense.

Segment reporting: Operating segments as disclosed and monitored.

Asset items by operating segment as at 31 December 2022

ANNUAL REPORT 2022

205 Sava Insurance Group

Non-life
Life

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

EUR

Asset items by operating segment as at 31 December 2021

ANNUAL REPORT 2022

206 Sava Insurance Group

Non-life

Life

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR

Equity and liabilities items by operating segment as at 31 December 2022

ANNUAL REPORT 2022

207 Sava Insurance Group

Non-life

Life

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

EUR

Equity and liabilities items by operating segment as at 31 December 2021

ANNUAL REPORT 2022

208 Sava Insurance Group

Non-life

Life

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

EUR

Income statement items by operating segment 2022

ANNUAL REPORT 2022

Sava Insurance Group

Non-life	Life
EUR

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

Sava Insurance Group

Annual Report 2022

Business Sustainability

Financial Report Statements with Notes 2022

						Reinsurance	Slovenia	International	Total
EUR	EUR	EUR	EUR

Income statement items by operating segment 2021

ANNUAL REPORT 2022

Sava Insurance Group

Non-life BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR

Sava Insurance Group

Non-life Annual Report 2022

EUR 212

Business Sustainability

Appendices

Financial Report Statements Report with Notes

2021

Reinsurance	Slovenia	International	Total
Slovenia	International

ANNUAL REPORT 2022

Inter-segment business	Reinsurance	Non-life	Life
	2022	2021	2022	2021	2022	2021
SUSTAINABILITY
APPENDICES
FINANCIAL REPORT STATEMENTS WITH NOTES

17.5

sardtandS

and interpretations issued but not yet effective,

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

and new standards and interpretations

Standards and amendments to the Amendments to IFRS 17 “Insurance Contracts”

Amendments to IAS 12 “Income Taxes”

ANNUAL REPORT 2022

215

– Initial Application of IFRS 17 and IFRS 9

existing standards adopted that will become effective at a later date and

Deferred Tax related to Assets and Liabilities arising

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Comparative Information adopted by the EU on from a Single Transaction adopted by the IASB

8 September 2022 (effective for annual periods begin-

11 August 2022 (effective for annual periods beginning

IFRS

“Regulatory Deferral Accounts”

Management assesses that the application of hedge accounting to a portfolio of financial assets or liabilities have been for no annual changes periods that would have a significant effect on the satisfaction of this condition on 31 December 2015.

A N N U A L R E P O R T 2022

Effective January 1, 2016. The European Commission has decided not to launch the endorsement process pursuant to IAS 39 “Financial Instruments: Recognition and Measurement” since compliance with the conditions and disclosures would not have had a significant effect then.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

Sava Insurance Group

Annual Report 2022

As % of total

Business Sustainability

Appendices

Financial Report Statements with Notes

EUR	31 Dec 2022	31 Dec 2021
liabilities

A N N U A L R E P O R T 2022

218

The table below provides an analysis of the fair value of financial assets. They are divided into assets whose contractual cash flows consist solely of payments of principal and interest (SPPI financial assets), excluding financial assets held for trading, and other financial assets.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Sava Insurance Group

A N N U A L R E P O R T 2022

219

The Sava Insurance Group below shows the carrying amounts of the assets whose contractual cash flows consist solely of payments of principal and interest on the principal amounts outstanding, of their credit risk rating.

EUR	Fair value as at 31 Dec 2022	Carrying amount as at 31 Dec 2022
B U S I N E S S	S U S T A I N A B I L I T Y	A p p e n d i c e s
F I N A N C I A L	R E P O R T	S TAT E M E N T S
R E P O R T	W I T H	N O T E S
Sava Insurance Group	Debt securities	166,105,116
	Debt securities	168,646,994

17.6

ctmpaI of the new standards IFRS 17 “Insurance Contracts” and

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

IFRS 9 “Financial Instruments”

17.6.2 SIFR

Insurance Contracts

the introduction of new measurement models: the introduction of the other comprehensive

ANNUAL REPORT 2022

the general measurement model of insurance come option to be used for measuring insurance

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

contracts issued and reinsurance contracts held, liabilities, which reduces some volatility in profit

On 13 May 2022, the European Securities and Mar-

based on the prospective method; loss for insurers where financial assets are measured

17.6.2.3 Level of aggregation of insurance

17.6.2.4 Contract boundaries

An insurance contract may contain one or more components that would be within the scope of another standard if they were separate contracts. These components include:

A N N U A L R E P O R T 2022

B U S I N E S S S U S T A I N A B I L I T Y

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

The Group and the Company include in the measure-

17.6.2.5

tialIni recognition of insurance and the beginning of the coverage period of a group the contractual terms specify that the policyhold-

ANNUAL REPORT 2022

223

reinsurance contracts of reinsurance contracts held by the Group or the er participates in a share of a clearly defined

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Company; assets; Insurance contracts the date on which the underlying group of onerous the contract issuer expects the policyholder

A N N U A L R E P O R T 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

The contractual service margin (CSM) represents the unearned profit under insurance contracts, which will be recognised during the provision of insurance services. In the event of identified future losses arising out of a group of insurance contracts, when the net present value of future cash flows is negative, the loss is recognised in the current period. Changes related to future service or current or past service from these contracts in the future.

Changes related to future service.

Changes related to current or past service.

17.6.2.6.3 Premium allocation approach (PAA)

17.6.2.6.4 Group reinsurance

The risk adjustment for non-financial risk for reinsur-

A N N U A L R E P O R T 2022

For insurance contracts with a duration of cover of one year or less and for contracts, for which the Group and the same as for insurance contracts. The valuation methods for reinsurance contracts are ance contracts represents the amount of risk being transferred by the insurer to the reinsurer. The Company reasonably expects that such simplifica-

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

A N N U A L R E P O R T 2022

BUSINESS SUSTAINABILITY

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

When estimating future cash flows, the Group and the RA – risk adjustment for non-financial risk identifying the coverage units in the group. The Company primarily use forecasts based on deterministic forecasting models. For certain groups of contracts, the risk adjustment for non-financial risk is the compensation the Group and the Company require for stochastic techniques for modelling future cash flows.

Determined by considering the number of coverage units in a group is the quantity of insurance contract services provided by the contracts in the group, bearing the uncertainty related to the amount and.

Discount rates

If the investment component and the insurance component are interrelated, both components are valued in the Group and the Company adjust their estimates. The statement of financial position will present the scope of IFRS 17, and the effect of the investment of expected cash flows for the time value of money.

Rately the carrying amounts of the following portfolios:

Part is excluded from the insurance revenue and insurance and financial risks associated with these cash flows. Insurance contracts issued that are assets;

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Finance

income and expenses

17.6.2.9 Transition

Modified retrospective approach

ANNUAL REPORT 2022

228

Finance income and expenses arising from insurance

The Group and the Company performed an evaluation. The objective of the modified retrospective approach

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

and reinsurance contracts comprise the change in the for each unit of account in order to assess the possible to achieve the closest outcome to the full retrospective carrying amount of a group of contracts resulting from transitional approaches provided by the standard. As approach; therefore, the Group and the Company

17.6.3 IFRS

A N N U A L R E P O R T 2022

“Financial Instruments”

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

at amortised cost (AC)

at fair value through other comprehensive income (FVOCI) and at fair value through profit or loss (FVTPL).

The business model is determined based on a consideration of the main factors mentioned above that reference the purpose of achieving the asset management objectives.

A N N U A L R E P O R T 2022

Equity instruments

Equity instruments are primarily classified for measurement through fair value through profit and loss.

Debt instruments, such as bonds, that were classified as available for sale (AFS) under IAS 39, will be

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Notwithstanding the above provisions, an entity may make an irrevocable election, at initial recognition, for the SPPI test. A financial asset passes the SPPI test.

Under IAS 39, the Group and the Company classify most of their financial assets in the form of debt securities as available for sale (AFS). Under IFRS 9, the

Estimated classification of financial assets (Sava Re)

ANNUAL REPORT 2022

231 Classification of financial investments under IAS 38

Remeasurement

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

Value under IAS 39 as	EUR million
Classification of financial investments under IFRS 9 at 31 Dec 2021	Stage

Estimated classification of financial assets (Sava Insurance Group)

ANNUAL REPORT 2022

232 Classification of financial investments under IAS 38

Remeasurement

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Value under IAS 39 as

EUR million	Classification of financial investments under IFRS 9 at 31 Dec 2021	Stage

17.6.3.2 Classification of financial liabilities

IFRS 9 also provides that an entity must not reclassify amount of the financial asset in the statement of A N N U A L R E P O R T 2022 233.

The provisions for classifying financial liabilities are the same under IAS 39 and IFRS 9. In accordance with the standard, at each reporting date, the Group and the Company classify all financial liabilities.

Subject to the standard, Impact assessment:

17.6.3.3.2 Measurement of expected credit losses

Expected credit losses are calculated. The approach required by the standard provides no guidance on how to determine the lifetime expected credit loss. Expected credit losses are a probability-weighted estimate of credit losses (i.e. the present value of all cash losses). The standard provides no guidance on how to determine default, thus achieving the forward-looking economic situation.

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Stage 3: for assets that are credit-impaired or in default, the lifetime expected credit loss is calculated.

17.6.3.4 Transition

Such assessment or designation will be made on the basis of the facts and circumstances that exist at the revaluation of investments in the amount of EUR million refers to investments that, according to the Group and the Company will first apply IFRS 9 on 1 January 2022. The Group and the Company will also date of initial application. The Group and the Company prepare comparative financial statements for the 2022 will apply this classification retrospectively. 9, will be reclassified from investments available.

A N N U A L R E P O R T 2022

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

17.7 Risk management

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

17.7.1

challenges and associated Macroeconomic volatility resulting from rapidly rising and reporting through regular risk reports. Inflation

A N N U A L R E P O R T 2022

interest rates was reflected above all in the valuation ary pressures have also been perceived in other risks

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S

R E P O R T W I T H N O T E S

of debt-based assets, which recorded their historically kets where the Group operates and in the reinsurance

17.7.1.1

Macroeconomic and geopolitical highest fall in value in 2022. The precarious economic segment, which therefore remains one of the main

A N N U A L R E P O R T 2022

As part of ORSA, the Group also analysed the impact are those that arise from the transition to a low-carbon reporting. Much attention was also paid to the efficiency of increased geopolitical and economic risks on its business and climate-resilient economy.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Given its activity, physical risks are extremely important under the scenarios of a higher inflation rate, negative developments in the business operations and solvency.

A N N U A L R E P O R T 2022

Further Solvency deterioration ratio levels in the line with internal and geopolitical situation. Thus, the Group’s estimated solvency position as at 31 December 2022 indicates that the Group is well capitalised, with a solvency ratio expected within the range of 177% to 187% (31 December 2021: 198%).

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

Additional Seeking Potential Measures defined by the Group to safeguard capital could also have an adverse impact on the restructuring strategy.

Suboptimal Acceptable Optimal Warning Over- capitalisations not needed.

Sava Insurance Group and Sava Re’s assets and liabilities.

A N N U A L R E P O R T 2022

Solvency ratio

Due	Capital	Capital	Lower	Lower	Upper	to bound	bound	bound	300%	220%	the adequacy	of	of	of	previously optimal	capitalization	capitalisation	capitalisation	of	of	described	Save	Sava	ReInsurance	adverse as at	31 December 2021	Throughout 2022	and in 2021	the Company’s capital adequacy	in 2022	31.12.2021	the year-end	31.3.2022	solvency ratio	30.6.2022	estimate	2022	for 30.9.2022	2022	quacy	31.12.2022	was consistently assessed to be above the	B U S I N E S S S U S T A I N A B I L I T Y	A p p e n d i c e s	F I N A N C I A L R E P O R T S T A T E M E N T S	R E P O R T WITH NOTES	the Sava Insurance Group stands at a slightly low-solvency ratio floor defined in the risk strategy	than the solvency ratio at year-end 2021, (more than 200%)	and significantly above regula-

A N N U A L R E P O R T 2022

17.7.3 Underwriting risks

The Group and Sava Re are exposed to non-life, life and health underwriting risks. Accepted life reinsurance business of non-Group cedants, including accident reinsurance business, is classified as health reinsurance risk. Due to their one-year duration and according to the nature of their coverage, this life reinsurance business is comparable to accepted accident reinsurance business.

First, we present underwriting risks arising out of non-life business. This is followed by risks arising out of life and health insurance business.

17.7.3.1 Non-life underwriting risk

The Group’s exposure to non-life underwriting risk, measured by the volume of consolidated net premiums earned by insurance class, is shown in the graph on the right.

Motor vehicle liability	Land motor vehicles	Fire and natural damage	Other	Personal accident	General liability	Assistance	Other
123.5	128.9	140.7	106.4	47.8	324.9	28.3	126.1
44.3	36.4	20.9	22.4	97.2	5.2	18.3	29.1

The figure includes health insurance business, provided on a similar basis as non-life insurance business. Those risks are addressed in section 17.7.3.3 Health underwriting risk.

ANNUAL REPORT 2022

Motor vehicle liability

Land motor vehicles

Fire and natural forces

Sava Re net

Other non-life damage to premiums

Personal accident by class of business

General liability

Other

The breakdown of the Group’s net non-life premiums earned did not change significantly in 2022.

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

The Group sources the largest premium volume in the Adriatic region, where its direct insurance subsidiaries operate; exposure to Slovenia is predominant. Diversification in 2022 remains similar to that of the previous year. Other exposures of Sava Re in other areas are relatively well diversified globally.

Because the Group as a whole has an adequate retrocession programme in place, it is not exposed to the risk of a sharp increase in net claims, not even in the case of catastrophic losses. More likely is an increase in net claims due to a mass of small adverse developments (an increase in claims or expenses or decrease in premiums), which would affect the net combined ratio.

A change in the Group’s net combined ratio by 1 p.p. due to higher/lower realised underwriting risks would result in a decrease/increase in net profit before tax of EUR 5.5 million (2021: EUR 5.3 million).

Sava Re’s exposure to non-life underwriting risk, measured by the volume of consolidated net premiums earned by insurance class, is shown in the graph on the right. The figure includes health insurance business, provided on a similar basis as non-life insurance business. Those risks are addressed in section 17.7.3.3 Health underwriting risk.

A N N U A L R E P O R T 2022

Premium risk

The breakdown of Sava Re’s net non-life (re)insurance premiums earned did not change significantly in 2022. The Group seeks to mitigate price risk before launching a product by making in-depth market analyses, and is estimated as moderate. The Group’s premium risk was slightly higher than in 2021 and is estimated as moderate.

We further assess this risk in Sava Re by monitoring informed (media, competitors, clients), and having applicable regulations and associated requirements.

A change in Sava Re’s net combined ratio by 1 p.p. due to that this risk in Sava Re is also moderate.

A N N U A L R E P O R T 2022

Reserve risk

The Group’s and Sava Re’s reserve risk is estimated as moderate and is slightly higher than in 2021 due to claims inflation. Such controls include:

Business Sustainability

Appendices

Financial Report Statements Report With Notes

Reserve risk assumptions in 2022 was shaped by the increased claims. For the same reason, Zavarovalnica peer review of actuarial methods and assumptions show positive results despite the 2022 counting records, run-off analyses for provisions established reconciliation of technical provision items with increase.

Adequacy analysis of gross claims provisions for the Sava Insurance Group’s non-life insurance business

ANNUAL REPORT 2022

245 EUR thousand

Year ended 31 Dec

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Estimate of gross liabilities	2012	2013	2014	2015	2016	2017	2018

ANNUAL REPORT 2022

The Group cannot use triangles organised by accident after, data on losses for proportional reinsurance con- late to claims that have already been incurred (report year data for recording claims provisions in respect of tracts is only broken down by underwriting year. Furthermore, some markets renew treaty business during covered by the claims provision, and claims arising companies report claims under proportional treaties the year, resulting in additional discrepancies between accepted contracts that have not yet been incurred.

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

A N N U A L R E P O R T 2022

When establishing technical provisions, the Group takes into account any under-reserved technical provisions identified on the subsidiary company level, recognising any identified deficiencies at the Group level. As at 31 December 2022, there were no aforementioned deficiencies.

B U S I N E S S S U S T A I N A B I L I T Y

A p P e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

A N N U A L R E P O R T 2022

Similarly, we can monitor the analysis of the run-off of the net provision for outstanding claims or technical provisions, which is also divided into primary insurance and accepted reinsurance business. As the ceded reinsurance of primary insurance has already been deducted from net provisions, accepted reinsurance for the purposes of the analysis of the Group and for purposes of the analysis of Sava Re is the same.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

248

Analysis of the amount of net technical provisions for accepted reinsurance or net technical provisions of Save Re

A N N U A L R E P O R T 2022

Year ended 31 Dec

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Estimate of liabilities	2012	2013	2014	2015	2016	2017	2018
EUR thousand

A N N U A L R E P O R T 2022

An appropriate reinsurance programme is important with other reinsurers to further disperse risks. Exposure to Slovenia was lower than the previous for managing the underwriting risk to which the Group is exposed. A more significant decrease was also recorded.

B U S I N E S S S U S T A I N A B I L I T Y

We consider natural catastrophe risk to be the biggest risk for the Company’s and the Group’s exposure. Sava Re uses retrocession treaties to diversify risk appropriately. The reinsurance programme also addresses catastrophe risk for Croatia and China.

A p p e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

A N N U A L R E P O R T 2022

17.7.3.2 Life underwriting risk

Other than for the aforementioned reduced priority of Sava Re’s exposure to life underwriting risk is low.

Insurance Group by line of business

The main life underwriting risks relevant for Sava Re 2022, net premiums earned from the reinsurance of cedants, the reinsurance programme remains and the Group are the mortality risk, life expense risk traditional life insurance amounted to EUR 759 more or less the same as the previous year. In this way, and lapse risk (which includes terminations due to sur- sand (2021: EUR 548 thousand) and net premiums.

Business Sustainability

Appendices

Financial Report Statements Report With Notes

(EUR million)

17.7.3.3 Health underwriting risk

17.7.4 Financial risks

Most of the exposure in health underwriting relates to accident insurance classified as NSLT health insurance, following balance sheet items: financial investments, portfolio, the insurance company assumes the exposure to SLT health insurance is very low.

A N N U A L R E P O R T 2022

Investments supporting the liabilities of unit-linked life business for which the insurer provides guaranteed unit values. For this part of the investment, the value of the investment portfolio includes the guaranteed unit values.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S

R E P O R T W I T H N O T E S

Value and structure of the investment portfolio in terms of financial risk assumption as at 31 December 2022

ANNUAL REPORT 2022

253 Sava Insurance Group

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Policyholder’s Investments

Value and structure of the investment portfolio in terms of financial risk assumption as at 31 December 2021

ANNUAL REPORT 2022

254 Sava Insurance Group

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Policyholder Investments

A N N U A L R E P O R T 2022

As at 31 December 2022, the Sava Re investment portfolio totalled EUR 687.9 million (31 December 2021: EUR 688.6 million) and consists of:

cash and cash equivalents (2022: EUR 23.9 million; 2021: EUR 28.8 million).

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

In 2022, the value of Sava Re’s investment portfolio ex- financial investments (2022: EUR 333.3 million; 2021:

17.7.4.1 Market risk

ANNUAL REPORT 2022

The following table shows the Group’s investments exposed to market risk

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Group financial investments exposed to market risk

ANNUAL REPORT 2022

Sava Re

Financial Investments Exposed to Market Risk

Type of investment	As % of total	As % of total
31 Dec 2022	Financial Report Statements
31 Dec 2022	31 Dec 2021
Absolute change

Business Sustainability

Appendices

A N N U A L R E P O R T 2022

The sensitivity analysis of the non-life segment as at 31 December 2022 showed that in the event of an interest rate increase of 1 p.p., the value of the interest rate sensitive investments would drop by EUR 21.2 million (31 December 2021: EUR 29.4 million) or 3.1% (31 December 2021: 4.0%). The table below shows in greater detail how the value of investments, loans and deposits, and the impact on the financial statements, where the impact on equity is classified as at fair value through other comprehensive income.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

A N N U A L R E P O R T 2022

The sensitivity analysis of interest rate sensitive life insurance shows in greater detail how the value of investments changes deposits, whereas the impact on investments showed that in case of a 1 p.p. increase in interest rates, the value would decrease by EUR 24.3 million or financial statements, where the impact on equity is a result of 4.3% (31 December 2021: 35.1 million; 5.2%).

B U S I N E S S

S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

available-for-sale	held-to-maturity	assets	loans

A N N U A L R E P O R T 2022

As at 31 December 2022, the value of the mathematically calculated provisions included in the sensitivity analysis on the mathematical provisions in accordance with the LAT would increase by EUR 9.9 million, using an interest rate that is 1 p.p. higher, 2.3% (31 December 2021: EUR 20.4 million; 4.6%).

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Liabilities side amounted to EUR 422.7 million (31 December 2021: EUR 443.6 million). The sensitivity analysis includes the results of the test which would decrease by EUR 8.4 million, or 2.0%, (31 December 2021: EUR 17.4 million; 3.9%). By contrast, the test set out in section 17.4.27 “Liability adequacy” would decrease by EUR 8.4 million, or 2.0%.

A N N U A L R E P O R T 2022

Sava Re interest rate risk sensitive technical provisions, changes in market includes government and corporate interest rates are only reflected in the value of the investment and convertible mutual funds with given that according to the prescribed methodology for the

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

The interest-rate sensitive investment portfolio in mutual funds with a weight of 0.5. calculation of technical provisions, Sava Re does not have in-

17.7.4.1.2 Investment property risk

The sensitivity analysis showed that an increase in interest rates would lower the value of the investment portfolio included in the analysis by EUR 8.2 million (31 December 2021: EUR 10.6 million) or 2.8% (31 December 2021: 3.7%).

The Group and Sava Re are exposed to investment property risk within investment portfolio risks. In addition to investment property, real estate funds shown as alternative investments under financial investments are also exposed to this.

ANNUAL REPORT 2022

262

ANNUAL REPORT 2022

Sava Insurance Group

31 Dec 2022

31 Dec 2021

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	Value	Post-stress value	Change in value	Value	Post-stress value	Change in value
Estimated value of investment property taking account of the shock

Equity investments included in the sensitivity analysis

ANNUAL REPORT 2022

Sava Insurance Group

As % of total portfolio	As % of total portfolio	Absolute change
B U S I N E S S	S U S T A I N A B I L I T Y	A p p e n d i c e s
F I N A N C I A L	R E P O R T	S TAT E M E N T S
R E P O R T	W I T H	N O T E S
as at 31 December 2022

Equity investments included in the sensitivity analysis

ANNUAL REPORT 2022

265

Sava Re	As % of total	As % of total	Absolute change
BUSINESS SUSTAINABILITY	FINANCIAL REPORT STATEMENTS	REPORT WITH NOTES
portfolio	portfolio	31 Dec 2022	– Change in structure

Assessed sensitivity of Sava Insurance Group’s investments in associates

ANNUAL REPORT 2022

31 Dec 2022

31 Dec 2021

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	Value	Post-stress value	Change in value	Value	Post-stress value	Change

17.7.4.1.4 Currency (mis)match Currency risk as at 31 December 2021 (all amounts currency translated matching to euros)

As at 31 December 2022, the Sava Insurance Group

A N N U A L R E P O R T 2022

Matched liabilities

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Currency	Assets	Equity and liabilities	Mismatch (%)
Foreign currency	9.0%	nominated in a foreign currency	(2021: 8.6%)

Transaction Impact of a 10-percent currency (mis)match increase or decrease at 31 December 2021 in the exchange rate (all amounts as at 31 December 2022 translated to euros)

ANNUAL REPORT 2022

268

(all amounts translated into euros)

Sava Insurance Group

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Currency	Assets	Equity and liabilities	Mismatch (%)
Sava Insurance Group
Assets less equity and
Effect of 10% rise in
Effect of 10% drop in

A N N U A L R E P O R T 2022

Currency (mis)match as at 31 December 2021

Sava Re is the largest member of the Sava Insurance Group with the largest exposure to currency risk. The Company assesses the ability of currency matching in the primary currency, and if this is not possible, the transaction currency is to be used for matching.

Currency Assets

As at 31 December 2022, the Company’s liabilities used for matching 140.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

A N N U A L R E P O R T 2022

Transaction currency (mis)match as at 31 December 2021 (all amounts translated to euros)

Sava Re	Matched liabilities
													Assets	Equity and liabilities	Mismatch (%)
Sava Re

Impact of a 10-percent increase or decrease

Effect of exchange differences on the income statement

The Company also uses a stochastic analysis to measure currency risk and to predict the average surplus funds as well as the 5th percentile of surplus funds after one year from the risk valuation date.

A N N U A L R E P O R T 2022

Sava Insurance Group

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Statement of financial position

Exchange differences

17.7.4.2 Liquidity risk

Liquidity risk assumed by an individual Group company maintains a liquidity buffer of highly liquid assets. Individual Group companies manage liquidity risk in line with the guidelines laid down in the liquidity risk management policy. Each Group member is also reduced by the regular measurement and monitoring of selected liquidity indicators. The maturity matching of financial assets and liabilities is one of the key components to meet any extraordinary liquidity requirements and provide liquidity.

A N N U A L R E P O R T 2022

272

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Sava Insurance Group

ANNUAL REPORT 2022

Carrying amount as at 31 Dec 2021

EUR										Callable	Up to 1 year	1–5 years
Financial investments								1,472,688,443			0		235,336,192		596,389,507

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

Maturity profile of financial assets and liabilities

ANNUAL REPORT 2022

274 Sava Re

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Carrying amount as at	EUR	31 Dec 2022
Callable	Up to 1 year	1–5 years

Sava

ANNUAL REPORT 2022

Carrying amount as at 31 Dec 2021

EUR										Callable	Up to 1 year	1–5 years
Financial investments								327,784,595			0			61,698,421	146,698,011

17.7.4.3 Credit risk

Sava Re’s exposure to credit risk posits with cedants, bond and convertible mutual funds,

ANNUAL REPORT 2022

276

Assets exposed to credit risk include financial investments (deposit investments, bonds, loans granted, receivables due from Sava Re and other receivables.

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

A N N U A L R E P O R T 2022

Fixed-rate investments as at 31 December 2022

Fixed-rate investments by issuer credit rating* rated 2022 compared with the previous year. Fixed-rate investments “A” or better accounted for 65.6% of the total fixed-rate investments with no credit rating available accounted for the share 7.7% of fixed-rate investments.

Sava Insurance Group

31 Dec 2022	31 Dec 2021
62.8%	Change in the best-rated investments increased somewhat in

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Diversification of financial investments

In terms of credit risk management, the Company Sava Re mitigates credit risk with other investments. A N N U A L R E P O R T 2022

strives to ensure that a material part of debt-based as- through a high degree of diversification and by investing in investments rated “A-” or better. As ing in liquid securities.

at 31 December 2022, debt investments rated “A” or

Diversification of financial investments by region

A N N U A L R E P O R T 2022

Sava Re’s largest exposure is to EU Member States

31 December 2022: 58.2%, 31 December 2021: 56.0%, with the exposure spread among 22 countries.

Sava Insurance Group

	31 Dec 2022	31 Dec 2021
Business Sustainability
Financial Report Statements
Report with Notes

This is followed by the exposure to Slovenia-based.

Exposure to Slovenia by asset type

ANNUAL REPORT 2022

280 Sava Re

31 Dec 2022

31 Dec 2021

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	Change in

Receivables ageing analysis

ANNUAL REPORT 2022

Sava Insurance Group

31 Dec 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	Gross amount												Allowance	Receivables	Not past due	Past due up to	Past due from
Not past due	30 days	to 60 days	to 90 days

Sava Insurance Group

31 Dec 2021

ANNUAL REPORT 2022

Past due up to	Past due from 31	Not past due
30 days	to 60 days	to 90 days
B U S I N E S S S U S T A I N A B I L I T Y	Receivables due from policyholders											146,939,903		-20,410,622			126,529,281		98,895,556				9,440,530							4,465,130						3,143,952

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

A N N U A L R E P O R T 2022

The Group assessed its receivables for impairment. Allowances were established for receivables that need to be impaired. Receivables are discussed in greater detail in note 17.8.11. The parent company takes action if a subsidiary gets into trouble.

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Receivables ageing analysis

ANNUAL REPORT 2022

284

Sava Re

31 Dec 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Past due up to	Past due from 31
Gross amount												Allowance	Receivables
Not past due	30 days	to 60 days	to 90 days

A N N U A L R E P O R T 2022

Sava assessed its receivables for impairment. As at 31 December 2022, the total exposure of Sava to credit risk relating to reinsurers was EUR 63.8 million (31 December 2021: EUR 53.1 million). Receivables are discussed in greater detail in note 17.8.11. Of this, EUR 55.5 million (31 December 2021: EUR 48.5 million) were established for receivables that needed to be impaired.

17.7.4.4

The risk of failing to realise guaranteed returns in the accumulation phase. Investment contract liabilities are not included in the consolidated technical provisions item, and are, therefore, not included in the policyholder assets and liabilities, an appropriate management strategy, an adequate level of the company’s.

A N N U A L R E P O R T 2022

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

The Group is also exposed to the risk of failing to achieve guaranteed returns, specifically with traditional presentation of underwriting risk.

17.7.5 Operational risks

personal data breaches in EU companies increased

ANNUAL REPORT 2022

The key operational risks of Save Re in 2022, ranked (from highest to lowest) are set out below. Risks that increased because of the high fines imposed by the regulator, according to their rating in the risk register:

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS

REPORT WITH NOTES

Operational risk is the risk of loss arising from inadequate or failed internal processes, people and systems or from external events (including cyber-attack, increased due to the war in Ukraine and the related increase in cyber threats).

A N N U A L R E P O R T 2022

288

Group companies have established processes for identifying, measuring, monitoring, managing and reporting on such risks for the effective management of operability (increased because of the situation), the risk of a deterioration in macroeconomic conditions and the resulting decrease in the Group’s profitability.

B U S I N E S S S U S T A I N A B I L I T Y

A p P e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Group companies and the Group are exposed to a variety of risks. Operational risk management processes address the risk of significant changes in local accounting.

A N N U A L R E P O R T 2022

The key strategic risks of Save Re in 2022, ranked according to their rating in the risk register (from highest to lowest) are set out below.

Changes in the level of risk were mainly a result of the competent organisational units in Group companies. Strategic risks are identified and managed by management functions and the key function holders.

Risks that increased in 2022 are marked as such:

The effect of Covid-19 on risks declined significantly in 2022, and the increased political tensions.

17.7.6.2 Sustainability Risk and Climate Change

Monitoring of sustainability-related legislative changes the risk of reduced availability and less unaffordable.

ANNUAL REPORT 2022

Risk and promptly adapts its business also by offering more sustainable reinsurance/retrocession due to the increased.

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Sustainable products and by actively learning about its frequency of causation and the strength of natural climate change risks customers’ new needs. The Group has implemented its catastrophes.

ANNUAL REPORT 2022

17.8 Notes to the financial statements

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Sava Insurance Group

Annual Report 2022

Deferred acquisition

Intangible assets

Business Sustainability

Appendices

Financial Report Statements Report with Notes

EUR	Software	Goodwill	Costs	Other intangible assets	Progress

Sava Re

ANNUAL REPORT 2022

Other intangible assets in Sava Re

EUR	Software assets	Progress	Total	EUR
Cost

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Goodwill Movement

Impairment in Goodwill Testing

Annual Report 2022

In the impairment testing of goodwill arising out of the acquired mutual fund management company in relation to the macroeconomic environment, demographic trends, projected trends in growth of assets under management of the pension and mutual fund companies listed at the beginning of this section, the recoverable amount of each cash-generating unit as at 31 December 2022 inflows and outflows, and returns in relation to expected de-

17.8.2 Property, plant and equipment

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Movement in cost and accumulated depreciation / impairment losses of property, plant and equipment assets

Sava Insurance Group

Annual Report 2022

Business Sustainability

Financial Report Statements with Notes

Property	Land	Buildings	Equipment	Equipment	In progress
Other items of

ANNUAL REPORT 2022

Other items of

PROPERTY, PLANT AND EQUIPMENT

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

EUR	Land	Buildings	Equipment	Equipment	In progress

ANNUAL REPORT 2022

Other items of

PROPERTY, PLANT AND EQUIPMENT

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	Land	Buildings	Equipment	Equipment	In progress

17.8.3 Right-of-use assets and liabilities

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Movement in cost and accumulated amortisation / impairment losses of right-of-use assets

Sava Insurance Group

Sava Re

ANNUAL REPORT 2022

300 EUR

2022	2021	2022	2021
B U S I N E S S	S U S T A I N A B I L I T Y	A p P e n d i c e s	F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S
Depreciation/amortisation	2,125,693	2,011,756	74,135
		74,585
31 Dec 2021

17.8.4 Deferred tax assets and liabilities

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Sava Insurance Group	Netted value as at	Included in income statement	Included in other comprehensive income	Offset value as at
EUR	31 Dec 2022			31 Dec 2021
Deferred tax assets

ANNUAL REPORT 2022

302

Sava	Re	Netted value as at	Included in income	Included in other	Offset value as at
EUR		31 Dec 2022	statement	comprehensive income	31 Dec 2021
Deferred tax assets
Long-term financial investments and investment property	1,244,584	-485,886	5,179,499	5,938,197	6,633,504

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

17.8.5 Investment property

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

Movement in cost and accumulated depreciation of investment property

Sava Insurance Group

Annual Report 2022

304 EUR

Business Sustainability

Appendices

Financial Report Statements

Report with Notes

Land	Buildings	Equipment	Total

Cost

Sava A N N U A L Re R E P O R T 2022

The increase of EUR 8.5 million in investment relates mainly to the new office building of Zavarov- Sava, which will be leased out in 2023, largely.

EUR	Land	Buildings	Equipment	Total
Cost

B U S I N E S S S U S T A I N A B I L I T Y

A p P e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

17.8.6 Financial investments in subsidiaries and associates

ANNUAL REPORT 2022

306 BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Sava Insurance Group

Sava Re

ANNUAL REPORT 2022

Acquisition

31 Dec 2020

31 Dec 2021

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	Holding	Value	Holding	Value
recapitalisation

Financial investments in associates

ANNUAL REPORT 2022

308 Sava Insurance Group

31 Dec 2021

31 Dec 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Attributed Share of voting rights (%)	EUR Holding	Value	Profit or loss

Sava Insurance Group

Annual Report 2022

309 EUR

31 Dec 2022	31 Dec 2021

Business Sustainability

Appendices

Financial Report Statements

Report with Notes

DCB (formerly ZTSR)

17.8.7 Financial investments

ANNUAL REPORT 2022

310 BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Sava Insurance Group

At F V T P L

Sava Insurance Group

Annual Report 2022

Business Sustainability

Appendices

Financial Report Statements

Report with Notes

311 EUR

Non-derivative

ANNUAL REPORT 2022

EUR

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Non-derivative

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS

REPORT WITH NOTES

Non-derivative

Movement in financial investments

ANNUAL REPORT 2022

Sava Insurance Group

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	Equity securities	Debt securities	Deposits	Loans	Deposits with cedants

Sava Insurance Group

Annual Report 2022

315 EUR

Business Sustainability

Appendices

Financial Report Statements Report with Notes

Balance as at 1 Jan 2021	118,692,147	1,279,661,013	22,415,443	2,119,569	7,261,165

Sava

ANNUAL REPORT 2022

316

EUR	Equity securities	Debt securities	Deposits	Loans	Deposits with cedants
BUSINESS SUSTAINABILITY
FINANCIAL REPORT STATEMENTS REPORT WITH NOTES
Balance as at 1 Jan 2022	31,840,575	283,760,710	0	2,572,974	9,610,337

Sava

ANNUAL REPORT 2022

317

EUR	Equity securities	Debt securities*	Deposits	Loans	Deposits with cedants
BUSINESS SUSTAINABILITY
FINANCIAL REPORT STATEMENTS REPORT WITH NOTES
Balance as at 1 Jan 2021	25,643,576	231,665,408	4,967,639	7,261,165	269,537,788

17.8.8

Asset held for the benefit of policyholders who bear the investment risk

ANNUAL REPORT 2022

318

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Sava Insurance Group

Investments for the benefit of life-insurance policyholders who bear the investment risk are investments placed by the

ANNUAL REPORT 2022

Group insurer in line with requests of life insurance policyholders.

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Movement in financial investments

17.8.9

17.8.10 A N N U A L R E P O R T 2022

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Investment contract assets and liabilities relate to the Življenjskega Cikla (MY life-cycle funds), relating to

Sava Insurance Group

Annual Report 2022

Business Sustainability

Appendices

Financial Report Statements

Report with Notes

Non-derivative

Investment Contract Assets by Level of the Fair Value Hierarchy

ANNUAL REPORT 2022

322 Sava Insurance Group

Fair Value

Business Sustainability

Appendices

Financial Report Statements Report with Notes

EUR

Sava Insurance Group

Annual Report 2022

Fair value

Business Sustainability

Appendices

Financial Report Statements with Notes

31 Dec 2021	Carrying amount	Level 1	Level 2	Level
EUR 323

Investment Contract Liabilities

ANNUAL REPORT 2022

Sava Insurance Group

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

EUR	31 Dec 2022	31 Dec 2021

Movement in investments, and income and expenses relating to investment contract assets measured at fair value – level 3

ANNUAL REPORT 2022

325 Sava Insurance Group

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	Debt instruments	Investments in infrastructure funds	Investments in real-estate funds

Investment

ANNUAL REPORT 2022

Net investment income for the financial period (EUR)

Annuity contracts	326
BUSINESS SUSTAINABILITY
FINANCIAL REPORT STATEMENTS REPORT WITH NOTES
Finance income	3,856,905
	161,301

Receivables by type

A N N U A L R E P O R T 2022

Sava Insurance Group

31 Dec 2022

31 Dec 2021

B U S I N E S S S U S T A I N A B I L I T Y

A p P e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Receivables increased by EUR 24.2 million at the

Gross amount	Allowance	Receivables
Gross amount	Allowance	Receivables

Net Receivables Ageing Analysis

Annual Report 2022

Sava Insurance Group

Business Sustainability

Appendices

Financial Report Statements Report with Notes

EUR	Past due up to			Past due from

Sava Insurance Group

Annual Report 2022

Business Sustainability

Financial Report Statements Report with Notes

Past due up to	Past due from
Not past due	180 days	180 days to 1 year
Past due over 1 year			Total
31 Dec 2021

Sava

ANNUAL REPORT 2022

B U S I N E S S S U S T A I N A B I L I T Y

A p P e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Receivables due from policyholders	Past due																																Total
Not past due	up to 180 days	from 180 days to 1 year	over 1 year
												62,496,337					13,790,972							2,685,384						1,622,719			80,595,413

Movement in allowance for receivables

ANNUAL REPORT 2022

Sava Insurance Group

Exchange

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	31 Dec 2021	Additions	Collection	Write-offs	differences	31 Dec 2022

Sava Exchange

ANNUAL REPORT 2022

EUR

31 Dec 2021										Additions	Collection differences	31 Dec 2022
								-656,690		-103,144
											24,007		-8,557		-744,384

BUSINESS SUSTAINABILITY

APPENDICES

FINANCIAL REPORT STATEMENTS WITH NOTES

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Deferred	acquisition	cash equivalents	costs

Sava Insurance Group

ANNUAL REPORT 2022

Business Sustainability

Appendices

Financial Report Statements

Report with Notes

Movement in capital reserves

As at 31 December 2022, the parent’s share capital

lCapitaShare	capital	reserves
17.8.16	17.8.17

A N N U A L R E P O R T 2022

17.8.19

17.8.21

tOwnNe profit or loss and retained earnings a EUR 22.1 million decline in that of the Company (2021: decrease of EUR 2.4 million). The table shows the net change in the fair value reserve, which is an equity component.

B U S I N E S S S U S T A I N A B I L I T Y

A p P e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

As of December 31, 2022, the net profit attributable to the Company owners held a total.

The Company ended the 2022 financial year with a net.

A N N U A L R E P O R T 2022

Retained earnings as at 31 December 2022 grew by EUR 26.4 million from 31 December 2021 (2021: EUR 13,173,042). The distributable profit for 2022 totals EUR 41.8 million (2021: EUR 42.8 million).

B U S I N E S S

S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

Non-controlling interests in equity EUR 37.1 million.

17.8.24 calTechni

provisions

and the technical provision for the benefit of life insurance policyholders who bear the investment

ANNUAL REPORT 2022

337 BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Movement in gross technical provisions and the technical provision for the benefit of life insurance policyholders who bear the investment risk

Sava Exchange

ANNUAL REPORT 2022

EUR 31 Dec 2021

Additions	Uses	Reversals	Differences
B U S I N E S S S U S T A I N A B I L I T Y	Gross unearned premiums	52,775,034	50,385,473
	-49,738,955	0	-429,156

Composition of the provision for outstanding claims

ANNUAL REPORT 2022

339 Sava Insurance Group

Sava Re

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

The provision for bonuses, rebates and cancellations is a small part of technical provisions; it mainly

	EUR	31 Dec 2022	31 Dec 2021	31 Dec 2022	31 Dec 2021

Calculation of the gross provision for unexpired risks by class of insurance

ANNUAL REPORT 2022

EUR	EUR
B U S I N E S S	S U S T A I N A B I L I T Y
A p p e n d i c e s	F I N A N C I A L R E P O R T S T A T E M E N T S
R E P O R T	W I T H N O T E S
31 Dec 2022	Primary insurance
Sava Re	31 Dec 2021

A N N U A L R E P O R T 2022

Movement in net technical provisions

We also present the movement in net technical provisions for the Group and Sava Re for 2022 and 2021.

B U S I N E S S S U S T A I N A B I L I T Y

A p P e n d i c e s

F I N A N C I A L R E P O R T

S T A T E M E N T S

W I T H N O T E S

...and the technical provision for the benefit of life insurance policyholders who bear the investment risk.

Sava

Additions

ANNUAL REPORT 2022

342

acquisition of BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	31 Dec 2021	Additions	Uses	Reversals	subsidiary

Sensitivity of the Group’s gross non-life insurance claims provision (CP) as at 31 December 2022

ANNUAL REPORT 2022

343 Scenario

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

EUR	Base CP	Post-stress CP	Stress impact	Stress impact (%)

17.8.25 Annual Report 2022

344 Business Sustainability

Appendices

Financial Report Statements

Report with Notes

Sava Insurance Group

Sava Re

Sava Insurance Group

Sava Re

ANNUAL REPORT 2022

345 Provision for Business Sustainability

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Provision for severance pay upon retirement benefits	Total retirement benefits
Provision for jubilee severance pay upon retirement benefits	Total retirement benefits

Sava Insurance Group

ANNUAL REPORT 2022

Provision for severance pay upon retirement

jubilee benefits

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Impact on the level of provisions (EUR)

	31 Dec 2022	31 Dec 2021
Impact on the level of provisions (EUR)

17.8.26 Liabilities from operating activities

ANNUAL REPORT 2022

347 BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Sava Insurance Group

Sava Re

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

FINANCIAL REPORT STATEMENTS WITH NOTES

Contractual maturity

Liabilities to policyholders	Up to 1 year	From 1 to 5 years																Total
															23,004,071	1,468,577		24,472,648

31 Dec 2022

ANNUAL REPORT 2022

Diverse other liabilities

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

Other liabilities by maturity

EUR	31 Dec 2022	31 Dec 2021
Diverse	other liabilities	Diverse	other liabilities
17.8.27					herOt

Change in short-term provisions

ANNUAL REPORT 2022

Short-term accrued expenses

Exchange BUSINESS SUSTAINABILITY Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	31 Dec 2021	Additions	Uses	Reversals	differences	31 Dec 2022

17.8.28 A N N U A L R E P O R T 2022

351 B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Financial assets by level of the fair value hierarchy

Sava Insurance Group

Annual Report 2022

Fair value

Business Sustainability

Appendices

Financial Report Statements with Notes

31 Dec 2021	Carrying amount	Level 1	Level 2
EUR

Sava

Annual Report 2022

Business Sustainability

Appendices

Financial Report Statements

Report with Notes

31 Dec 2022	Carrying amount	Level 1	Level 2
EUR
Fair value

Sava

Annual Report 2022

354 EUR

Business Sustainability

Appendices

Financial Report Statements

Report with Notes

31 Dec 2021	Carrying amount	Level 1	Level 2

Movement in investments, income and expenses measured at fair value – level 3

ANNUAL REPORT 2022

355 Sava Insurance Group

Debt instruments

Equity instruments

Investments in infrastructure funds

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	31 Dec 2022	31 Dec 2021	31 Dec 2022	31 Dec 2021	31 Dec 2022	31 Dec 2021

Reclassification of assets and financial liabilities between levels

ANNUAL REPORT 2022

Sava Insurance Group

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	31 Dec 2022	Level 1	Level 2	Level 3

Mutual funds and listed equity securities that meet

Sava ANNUAL REPORT 2022

357

criteria of an active market, as well as debt securities

EUR

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

31 Dec 2022

Level 1

Level 2

Level 3

valued at BVAL bid prices that meet the relevant quality criteria, are also classified into this level.

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Net premiums earned

Sava Insurance Group

Annual Report 2022

2021

Premiums written for Reinsurers’ and co-	Change in gross unearned
B U S I N E S S S U S T A I N A B I L I T Y	A p p e n d i c e s
F I N A N C I A L R E P O R T S T A T E M E N T S	REPORT WITH NOTES
EUR	Gross premiums written assumed co-insurance insurers’ shares (-) premiums (+/-)

ANNUAL REPORT 2022

Change in unearned premiums, reinsurers’ and co-insurers’ shares

BUSINESS SUSTAINABILITY

FINANCIAL REPORT STATEMENTS WITH NOTES

EUR	Gross premiums written	insurers’ shares (-)	premiums (+/-)	co-insurers’ shares (+/-)

ANNUAL REPORT 2022

Change in unearned premiums, reinsurers’ and co-insurers’ shares

BUSINESS SUSTAINABILITY

FINANCIAL REPORT STATEMENTS WITH NOTES

EUR	Gross premiums written	insurers’ shares (-)	premiums (+/-)	co-insurers’ shares (+/-)
2021
2022

17.8.30

17.8.31 Investment Income and Expenses

ANNUAL REPORT 2022

362 relating to investments in BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Investment income by IFRS categories subsidiaries and associates

Income from A N N U A L R E P O R T 2022

363

Interest income	at	Change in fair value	Gains on disposal	dividends and
2022	B U S I N E S S	S U S T A I N A B I L I T Y	A p P e n d i c e s	F I N A N C I A L R E P O R T S T A T E M E N T S
R E P O R T	W I T H	N O T E S
effective interest	and gains on disposal	of other IFRS	asset shares	– other
EUR
rate	F V T P L	assets	categories	investments
Exchange

Sava Insurance Group

Income from A N N U A L R E P O R T 2022

Interest income at	Change in fair value	Gains on disposal	Dividends and
2021	B U S I N E S S S U S T A I N A B I L I T Y	A p p e n d i c e s	F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S
Effective interest	and gains on disposal of other IFRS assets	Shares – other	EUR
Rate	F V T P L assets	Categories	Investments
Exchange

ANNUAL REPORT 2022

Financial Report Statements with Notes

Sava	Re
Change in fair value	Gains on disposal	Income from dividends
Interest income at and gains on disposal of other IFRS asset and shares – other
Effective interest rate	FVTPL assets	Categories investments

ANNUAL REPORT 2022

Financial Report Statements with Notes

Sava	Re
Change in fair value	Gains on disposal	Income from dividends
2021	Interest income at and gains on disposal of other IFRS asset and shares – other	effective interest rate
EUR	FVTPL assets	categories investments

Investment expenses by IFRS categories

ANNUAL REPORT 2022

Sava Insurance Group

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

Sava Insurance Group

Annual Report 2022

Business Sustainability

Appendices

Financial Report Statements with Notes

2021

Change in fair value	Losses on disposal	and losses on disposal of other IFRS asset	Impairment losses on

A N N U A L R E P O R T 2022

Change in fair value

Losses on disposal

and losses on disposal of other IFRS asset

Impairment losses on

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

EUR

Interest expenses of F V T P L assets

categories investments

Exchange losses

Net investment income

ANNUAL REPORT 2022

Sava Insurance Group

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Change in fair value and Gains/losses on Income from dividends	Impairment	Foreign Interest income/ gains/losses on disposal of disposal of other IFRS and shares – other losses on exchange
2022

Sava Insurance Group

Income from A N N U A L R E P O R T 2022

Change in fair value and Gains/losses on dividends and Impairment	Foreign	Interest income/ gains/losses on disposal of other IFRS shares – other losses on exchange
371	2021

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

EUR	expenses	F V T P L assets	asset categories	investments	losses

ANNUAL REPORT 2022

Net unrealised gains and losses on investments of life

policyholders that bear investment risk include all gains and gains/losses on disposal of dividends and

2022 BUSINESS SUSTAINABILITY Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Change in fair value	Gains/losses	Income from
Interest income/disposal of FVTPL	other IFRS asset shares – other	Foreign exchange
Other income/expenses
Total

the balance sheet as assets of policyholders who bear

ANNUAL REPORT 2022

Change in fair value and gains/losses

Income from	2021	2022
dividends and
Impairment
Foreign
Interest income/
losses on disposal
other IFRS
asset shares – other
losses on exchange
gains/Other income/
expenses of FVTPL
assets categories
investments
losses
expenses
Total

ANNUAL REPORT 2022

Net Investment income of non-life insurance business totalled EUR 15.1 million in 2022 (2021: EUR 28.3 million).

Liability fund

Sava Insurance Group

Sava Re

BUSINESS SUSTAINABILITY

FINANCIAL REPORT STATEMENTS WITH NOTES

The main factor contributing to the lower return compared to the previous year was the net negative change.

	2022	2021
EUR	15.1 million	28.3 million

Investment Expenses for income financial – life assets insurance and liabilities business – non-life business

ANNUAL REPORT 2022

Sava Liability Insurance fund Group

Sava Insurance Group

Long-term business Sava Refund

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	EUR	2022	2021	2022	2022	2021	2021

A N N U A L R E P O R T 2022

Sava Insurance Group

Long-term business

Sava Refund

B U S I N E S S S U S T A I N A B I L I T Y

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Expenses Net	Investment	Financial Income	Assets from	Non-life Liabilities	Life–Life Business	Business
EUR	EUR	2022	2021	2022	2021	2021

17.8.32 ANNUAL REPORT 2022

377 BUSINESS SUSTAINABILITY

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Other	Reinsurance	technical	commission	income	income

Other

technical income

expenses

A N N U A L

technical

R E P O R T

expenses

2022

include

foreign

exchange losses

based on the gross principle, whereas in the f i -

Sava

Insurance Group

Sava

ReRe

B U S I N E S S S U S T A I N A B I L I T Y

A p P e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

nancial statements

they are included based on the net

EUR	EUR
2022	2022
2021	2021

17.8.33 A N N U A L R E P O R T 2022

379 B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

Net claims incurred

Sava Insurance Group

Gross amounts

ANNUAL REPORT 2022

2021

Reinsurers’ share of Business Sustainability

Co-insurers’ share of Change

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

EUR	Claims	Subrogation recoveries	claims (-)	claims (-)

ANNUAL REPORT 2022

Reinsurers’ share of Change in the gross claims and

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

EUR	Claims	Recourse receivables	claims (-)	provision (+/-)	the claims
Gross amounts

ANNUAL REPORT 2022

Gross amounts

Reinsurers’ share of Change in the gross claims and

BUSINESS SUSTAINABILITY

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	Claims	Subrogation recoveries claims (-)	provision (+/-)	the claims

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

The Group classifies operating expenses by nature. Compared to 2021, these expenses rose by 3.8%, or EUR 8.4 million.

A N N U A L R E P O R T 2022

Sava Insurance Group

B U S I N E S S S U S T A I N A B I L I T Y

A p P e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

The Audit main fees items of other operating expenses, excluding audit expenses, are as follows.

Sava Insurance Group	EUR	2022	2021
EUR	2022	2021

17.8.36 Income tax expense

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Tax expense recognised in the income statement

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

FINANCIAL REPORT STATEMENTS WITH NOTES

Long-term financial investments and investment property												2022						2021
Before taxes													Tax	After taxes	Before taxes	Tax	After taxes
											-27,260,529		5,179,499		-22,081,030		-2,987,782		567,678

17.9 Contingent assets and liabilities

ANNUAL REPORT 2022

387 BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Remuneration of management board members in 2022

17.10 Related party disclosures

ANNUAL REPORT 2022

388

Gross salary – fixed	Gross salary – variable	Benefits in kind – insurance premiums	Benefits in kind – use of company car	Total
EUR

A N N U A L R E P O R T 2022

Liabilities to management board members based on gross remuneration

EUR	31 Dec 2022	31 Dec 2021
Marko Jazbec	18,000	16,500

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

Remuneration of the supervisory board and its committees in 2022

ANNUAL REPORT 2022

390

Remuneration for Reimbursement

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

performing the of expenses and Benefits in kind –

Remuneration for Reimbursement

ANNUAL REPORT 2022

391

performing the of expenses and Benefits in kind –

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

EUR	Attendance fees	function	training	insurance premiums	Total

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS WITH NOTES

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS

REPORT WITH NOTES

Employee remuneration not subject to the tariff section of the collective agreement for 2022

Subsidiaries

ANNUAL REPORT 2022

Benefits in BUSINESS SUSTAINABILITY

Appendices

FINANCIAL REPORT STATEMENTS REPORT WITH NOTES

Investments in and amounts due from Group companies

Gross salary –	Gross salary – kind and other

Liabilities

Income and expenses

Group companies relating to by Group maturity

A N N U A L R E P O R T 2022

EUR

Sava Re

B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Contractual maturity

EUR

2022	2021

Receivables

Characteristics

due of from loans the granted state and to subsidiaries majority state-owned companies

A N N U A L R E P O R T 2022

396

Sava Re

Insurance Group

Sava Re

B U S I N E S S S U S T A I N A B I L I T Y

A p P e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

Borrower	Principal	Type of loan	Maturity	Interest rate
EUR	31 Dec 2022	31 Dec 2021	31 Dec 2022	31 Dec 2021

A N N U A L R E P O R T 2022

397 B U S I N E S S S U S T A I N A B I L I T Y

A p p e n d i c e s

F I N A N C I A L R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

Significant Events After the Reporting Date

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

FINANCIAL STATEMENTS WITH NOTES

Every person is unique, leaves a unique footprint and makes a unique contribution. Among good people, we want to create an environment where everyone can thrive, fulfill their aspirations and become the best version of themselves. That's why we will continue to be a support you can rely on, with a network of services and continuous development aimed at the well-being of each individual and the community.

Appendices

Appendix

A – Sava

Re performance indicators

147

ANNUAL REPORT 2022

399

BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS

REPORT WITH NOTES

Development of gross claims paid Loss ratios

ANNUAL REPORT 2022

400	2022	2021	Index
BUSINESS SUSTAINABILITY	FINANCIAL	Appendices	REPORT STATEMENTS WITH NOTES
EUR

EUR, except percentages

A N N U A L R E P O R T 2022

Administrative expenses as percentage of gross premiums written

Acquisition costs (commission) as percentage

Gross premiums

Operating

B U S I N E S S S U S T A I N A B I L I T Y

F I N A N C I A L A p P e n d i c e s

R E P O R T S T A T E M E N T S W I T H N O T E S

EUR, except percentages	1	2	2/1	1/2
Gross premiums written	expenses*	2022	Index

ANNUAL REPORT 2022

Net paid loss ratio

Combined loss ratio for non-life insurance

Net premiums earned	Net claims incurred	Administrative expenses
EUR, except percentages	1	2
2/1	2021

BUSINESS SUSTAINABILITY

FINANCIAL STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

BUSINESS SUSTAINABILITY

FINANCIAL STATEMENTS

REPORT WITH NOTES

Net provisions for outstanding claims as percentage of net earned premiums	Gross profit or loss for the period as percentage
Net provision	Gross profit/loss	Net premiums earned
																												1								2

A N N U A L R E P O R T 2022

Receivables arising out of reinsurance business and reinsurers’ share of technical provisions as percentage of equity (EUR, except percentages)

Reinsurers’ share of technical

B U S I N E S S S U S T A I N A B I L I T Y

F I N A N C I A L A p P e n d i c e s

R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

Reinsurance receivables	provisions	Equity	2022

Appendix

A N N U A L R E P O R T 2022

B U S I N E S S S U S T A I N A B I L I T Y

F I N A N C I A L A p p e n d i c e s

R E P O R T S T A T E M E N T S W I T H N O T E S

of the Sava Insurance Group pursuant to Insurance Supervision Agency

Consolidated statement of financial position – equity and liabilities

ANNUAL REPORT 2022

EUR

	31 Dec 2022	31 Dec 2021	Index	EUR
EQUITY AND LIABILITIES				2,534,002,659
				2,658,322,359
				95.3
Investment contract liabilities

Consolidated Income Statement

Annual Report 2022

EUR	2022	2021	Index	EUR
Net premiums earned	701,377,709	686,574,317	102.2
Expenses for bonuses and rebates

Consolidated Statement of Other Comprehensive Income

Annual Report 2022

EUR	2022	2021
Business Sustainability	Financial	Appendices
Report Statements	With Notes
Technical Account – Non-life Insurance Business	Other than Health Insurance Business

ANNUAL REPORT 2022

V. Change in other net technical provisions (+/-)

EUR 2022: 2,226,940

EUR 2021: -1,381,815

BUSINESS SUSTAINABILITY FINANCIAL

Appendices

REPORT STATEMENTS WITH NOTES

VI. Net expenses for bonuses and rebates

EUR 2022: 302,347

EUR 2021: 276,004

ANNUAL REPORT 2022

Business Sustainability

Financial Appendices

Report Statements with Notes

Gross reinsurance premiums written	2022	2021
(-)	-346,381	-357,149
Gross reinsurance premiums written for other companies	-346,381	-357,149

ANNUAL REPORT 2022

EUR				2022	2021
1.1. Change in the gross mathematical provision (+/-)				-45,060,407	92,573,876
B U S I N E S S S U S T A I N A B I L I T Y		F I N A N C I A L	A p p e n d i c e s
REPORT STATEMENTS WITH NOTES	VIII. Net operating expenses			39,042,185	38,844,244

ANNUAL REPORT 2022

II. Balance on the technical account – life business (B XIII)

2022: 16,221,393

2021: 15,665,783

BUSINESS SUSTAINABILITY

FINANCIAL A p P e n d i c e s

REPORT STATEMENTS WITH NOTES

III. Investment income

2022: 31,000,701

2021: 24,559,238

ANNUAL REPORT 2022

EUR																		2022	2021
		1.	Other income from non-life business other than health business															15,266,317	16,075,470
		2.	Other income from life business															143,027	124,473

BUSINESS SUSTAINABILITY

FINANCIAL APPENDICES

REPORT STATEMENTS WITH NOTES

ANNUAL REPORT 2022

EUR																				2022	2021
		5.	Other items that will not be reclassified subsequently to profit or loss																	946,933	335,805
		6.	Tax on items that will not be reclassified subsequently to profit or loss																	-154,398	741

BUSINESS SUSTAINABILITY

FINANCIAL APPENDICES

REPORT STATEMENTS WITH NOTES

Consolidated Statement of Cash Flows

Annual Report 2022

EUR	2022	2021
Business Sustainability
Financial Appendices
Report Statements with Notes
A.	Cash flows from operating activities

ANNUAL REPORT 2022

Cash flows from investing activities

B. BUSINESS SUSTAINABILITY FINANCIAL Appendices

a)	Cash receipts from investing activities	2022	2021
		380,529,252	681,772,670

Appendix

Annual Report 2022

Business Sustainability Financial Appendices

Report Statements with Notes

Agency

Disclosure of off-balance sheet items

ANNUAL REPORT 2022

Net claims incurred

Sava Re

BUSINESS SUSTAINABILITY

FINANCIAL Apendices

REPORT STATEMENTS WITH NOTES

EUR	2022	2021
- Gross claims payments

Statement of other comprehensive income

ANNUAL REPORT 2022

EUR	2022	2021
BUSINESS SUSTAINABILITY	FINANCIAL	A p p e n d i c e s
REPORT STATEMENTS WITH NOTES
Technical account – non-life insurance business other than health insurance business

ANNUAL REPORT 2022

VIII. Other net technical expenses

EUR	2022	2021
Expenses for loss prevention activities	275,581	277,953

BUSINESS SUSTAINABILITY FINANCIAL APPENDICES

REPORT STATEMENTS WITH NOTES

12

ANNUAL REPORT 2022

Asset management expenses, interest expenses and other financial expenses	2022	2021
EUR	2,909,171	2,900,022
Financial expenses from revaluation	16,035,623	6,161,660

BUSINESS SUSTAINABILITY

FINANCIAL APPENDICES

REPORT STATEMENTS WITH NOTES

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

FINANCIAL STATEMENTS

REPORT WITH NOTES

Other items that will not be reclassified subsequently to profit or loss																					2022	2021
																					55,904	49,958
Items that may be reclassified subsequently to profit or loss																					-22,081,029	-2,420,104

ANNUAL REPORT 2022

8.	Change in liabilities arising out of reinsurance business	3,455,268	1,769,265
9.	Change in other operating liabilities	2,045,319	2,711,773

Appendix C2 – Glossary of selected terms and calculation methods for indicators

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY FINANCIAL

Appendices

REPORT STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

Gross expense ratio

The ratio of operating expenses as a percentage of gross premiums written. The Group’s ratio is calculated for Net (insurance) premiums earned.

Net premiums written

the reinsurance, 425 non-life insurance and life insurance operating segments.

Net claims incurred

Net claims payments, net of income.

B U S I N E S S S U S T A I N A B I L I T Y

F I N A N C I A L A p P e n d i c e s

R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

Gross incurred loss ratio

Gross claims paid, including the change in the gross provision for outstanding claims, as a percentage of the change in the net provision for outstanding claims.

A N N U A L R E P O R T 2022

Operational limits for particular areas are determined on the basis of expressed risk tolerance limits. In absolute terms, this is the maximum amount acceptable for a particular risk so that the Company remains within its risk appetite framework.

B U S I N E S S S U S T A I N A B I L I T Y

F I N A N C I A L R E P O R T

A p p e n d i c e s

R E P O R T S T A T E M E N T S

R E P O R T W I T H N O T E S

Operational risk. Risk of loss arising from inadequate or failed internal processes, personnel or systems, or from external events.

It includes the following statement of financial assets. It includes associates, financial investments, and cash and cash reporting date and as at the end of the prior year.

Appendix

– GRI index

148

ANNUAL REPORT 2022

427

BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS WITH NOTES

ANNUAL REPORT 2022

428

GRI 2-23

Policy commitments

5, 6.1, 14

BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS WITH NOTES

GRI 2-27

Compliance with laws and regulations

GRI 1

used

GRI 1: Foundation 2021

ANNUAL REPORT 2022

GRI 204: Procurement practices

GRI 3-3 Management of material topics

BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS WITH NOTES

204-01 Proportion of spending on local suppliers

GRI 1 used

GRI 1: Foundation 2021

ANNUAL REPORT 2022

Percentage of employees receiving regular performance and career development reviews

10.5.1 BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS WITH NOTES

GRI	405:	Diversity and equal
GRI	3-3	Management of material topics
GRI	1	used
GRI	1:	Foundation 2021

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

FINANCIAL APPENDICES

REPORT STATEMENTS WITH NOTES

Annual report of the Sava Insurance Group and Sava Re d.d. for 2022

Published by Sava Re d.d.

Texts by Sava Re d.d. and AV studio d.o.o.

Designed and produced by AV studio d.o.o.

Photographs by Matej Vranič, Nik Jarh, Shutterstock, Blanka Savšek and Jerneja Ažman (Sava Re Health Day), archives of Sava Re and the Sava Insurance Group

Original version in Slovenian.

Translation by Sava Re in cooperation with Veris d.o.o.

Ljubljana, March 2023

Sava Re, d.d.

Dunajska cesta 56, P.O.B. 318

SI-1001 Ljubljana, Slovenia

T +386 1 47 50 200

[email protected]

www.sava-re.si

NO_CONTENT_HERE

AI Terminal

Pozavarovalnica Sava

ANNUAL REPORT

September

ANNUAL REPORT 2022

2022

BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS WITH NOTES

A N N U A L R E P O R T 2022

Operating

After-tax Return

Return

CAGR:

CAGR:

of the Sava Insurance Group (€m)

ANNUAL REPORT 2022

Insurance is about connecting.

Connecting individuals and companies to ensure security and quality of life, putting them first and making services more accessible to them through digital tools. Through reinsurance, we connect insurance companies in Slovenia and abroad. Many of them have placed their trust in us for decades.

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS WITH NOTES

Declaration of the management board

Ljubljana, 15 March 2023

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

FINANCIAL STATEMENTS

REPORT WITH NOTES

ANNUAL REPORT 2022

BUSINESS SUSTAINABILITY

FINANCIAL

Appendices

REPORT STATEMENTS

WITH NOTES

ANNUAL REPORT 2022

CONTENTS

ANNUAL REPORT 2022

BUSINESS

Business is about people. It is about building relationships based on trust and taking responsibility. We are honoured by your trust and belief in our story. It is your trust that drives us, so that we do not rest at any goal we achieve, but always reach for the next one.

A N N U A L R E P O R T 2022

1

2

B U S I N E S S R E P O R T S TAT E M E N T S R E P O R T W I T H N O T E S

A N N U A L R E P O R T 2022

S U S T A I N A B I L I T Y

F I N A N C I A L

A p P e n d i c e s

B U S I N E S S R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

In 2022, the Group's development activities were focused on the consolidation of the sustainability management system and underlines the principles of responsible development.

Company name

Profile of Sava Re and the Sava Insurance Group

ANNUAL REPORT 2022

Business address

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT STATEMENTS REPORT WITH NOTES

Telephone (switchboard)

+386 1 47 50 200

2.2 Significant events in 2022

ANNUAL REPORT 2022

SUSTAINABILITY

FINANCIAL

Appendices

BUSINESS REPORT

STATEMENTS WITH NOTES

2.3 Significant events after the reporting date

A N N U A L R E P O R T 2022

14 S U S T A I N A B I L I T Y

F I N A N C I A L A p P e n d i c e s

B U S I N E S S R E P O R T S T A T E M E N T S R E P O R T W I T H N O T E S

credit ratings reaffirmed

2.5 Profile of the Sava Insurance Group

ANNUAL REPORT 2022

15 SUSTAINABILITY

FINANCIAL

Appendices