Pozavarovalnica Sava

Earnings Release • Mar 12, 2018

a SAVA RE GROUP UNAUDITED 2017 RESULTS AND PLAN FOR 2018

9 MARCH 2018

1. UNAUDITED RESULTS 2017

2017 – GOOD PERFORMANCE, BUT HEAVY LOSS BURDEN

Reaffirmed ratings and S&P outlook upgraded to positive: Standard & Poor's: A− (positive outlook); July 2017

A.M. Best: A− (stable outlook); October 2017

• The Sava Re Group hit the €500 million GPW mark in 2017.
• In 2017 Sava Re fully repaid its subordinated debt (€24 million).
• Signed acquisition deals for two companies: NLB NPF (Macedonian pension fund) and TBS Team 24 (Slovenian assistance company with international presence).
• Sava Re became the sole owner of Zavarovalnica Sava (squeeze-out of minority shareholders).

Unaudited data.

*Excluding exchange differences.

Net combined ratio. Ratio of total expenses (other than investment) to total income (other than investment). The ratio is calculated for the reinsurance and non-life insurance operating segments.

2017 – €500 MILLION GPW MARK REACHED

2017 – STRONG GROWTH IN GPW IN ALL MARKETS

Insurance and pension companies Reinsurance company

Global markets

(Sava Re reinsurance premiums in global markets) € 96.2 million extra-group GPW 17/16: +3.8%

Unaudited data.

1. PLAN FOR 2018

CHIEF DIRECTIONS FOR THE 2017–2019 PERIOD

• 1. Digitalisation and technological modernisation of operations to place the client at the centre of services and ways of working
• 2. Growth through acquisitions
• 3. Seeking opportunities in environmental/sustainable-oriented investment projects
• 4. Closing the gap between intrinsic value and market price of shares

# NEVER ALONE

WE ARE CREATING A MODERN, DIGITAL, SOCIALLY- AND SUSTAINABLE-ORIENTED INSURANCE GROUP.

2018 PLAN – MAIN TARGETS (CONSOLIDATED)

	2016	2017 plan	2017**	2018 plan
Gross written premiums	€490.2 million	€494 million	€517.2 million	> €520 million
Net combined ratio* (reinsurance + non-life)	94.6%	94.6%	95.5%	94.0%–94.5%
Net incurred loss ratio* (reinsurance + non-life)	58.2%	59.4%	60.5%	59.4%–59.9%
Net expense ratio	34.0%	32.6%	32.7%	31.4%–31.7%
Return on the investment portfolio*	2.2%	1.8%	2.0%	1.7%
Profit/loss, net of tax	€32.9 million	between €31 and €33 million	€31.1 million	between €37 and €39 million
Return on equity	11.3%	10.3%	10.1%	> 11%

*Excl. exchange differences

**Unaudited data.

THANK YOU FOR YOUR ATTENTION!

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