Pozavarovalnica Sava

Earnings Release • Mar 2, 2020

2019 unaudited results Sava Insurance Group

28 February 2020

a

unaudited results

Highlights of 2019

Growth in GPW of 9.7%, growth in operating revenues of 10.1%

Net profit of €50.2 million and ROE of 13.8%, which includes a one-off positive effect on the reversal of badwill relating to the acquisition of Ergo of €7.5 m

Net combined ratio (excl. FX) of 93.8%, which is within the target range

v First consolidation of new companies:

• Ergo Osiguranje and Ergo Životno Osiguranje on 31 March 2019 (both portfolios were part of the Croatian branch of Zavarovalnica Sava in December 2019) and
• Sava Infond on 30 June 2019

Issue of 20-year subordinated bonds worth €75 m with first call date in 2029

Signed deals to acquire Bled Diagnostic Centre and NLB Vita

Unaudited data.

Achievement of the 2019 plan

	2018	2019 plan	2019 actual*
Group
Operating revenues	€531.3 m	> €535 m	€584.9 m
Profit or loss, net of tax	€43.0 m	> €43 m	€50.2 m
Return on equity	13.1%	> 12%	13.8%
v Investment return**	1.7%	1.7%	1.9%
(Re)insurance part (+ annuities)
Gross premiums written	€546.3 m	> €555 m	€599.3 m
Net expense ratio** (reins. + non-life + life)	33.1%	32.4‒33.0%	31.7%
Net combined ratio** (reins. + non-life)	92.9%	93.6‒94.1%	93.8%

* Unaudited data.

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** Excluding the effect of exchange differences. The investment return does not include the expenses of subordinated debt.

Development of consolidated gross premiums written

Strong growth in GPW in all insurance markets in 2019

Insurance and pension companies Reinsurance company

Global markets Sava Re reinsurance business Non-Group premiums: €90.3 m 2019/18: +1.0%

Unaudited data.

Thank you for your attention.