Pozavarovalnica Sava

Earnings Release • Mar 7, 2022

Sava Insurance Group

unaudited results

March 2022

unaudited results

Highlights of 2021

Growth in operating revenue of 7.6%

Record net profit of €76.2 million, which exceeds planned net profit by 43.8%

Net expense ratio of 29.0% (last year 29.5%)

Net combined ratio (excluding FX differences) of 88.3% (last year 93.9%)

All segments ended the year with a profit, except for the "other" segment, which includes subordinated debt expenses

Improved performance of non-life segments due to favourable claims development, improved performance of the Pensions & AM segment due to higher inflows and favourable conditions on the stock markets with a positive impact on the amount of AUM

S&P and AM Best "A" ratings, stable outlook, affirmed

Unaudited data.

Achievement of the 2021 plan

	2020 actual	2021 plan	2021 actual*
Group
Operating revenue	€680.8 m	> €685 m	€732.7 m
Profit, net of tax	€56.4 m	> €53 m	€76.2 m
Return on equity (ROE)	13.3%	>= 11.5%	15.8%
Net expense ratio**	29.5%	32‒33%	29.0%
Investment return**	1.6%	1.5%	1.8%
Gross premiums written	€679.7 m	> €685 m	€729.9 m
Net incurred loss ratio** (reins. + non-life)	61.6%	59‒60%	55.6%
Net combined ratio** (reins. + non-life)	93.9%	< 94%	88.3%

* Unaudited data.

** Impact of exchange rate differences excluded. The investment return does not include subordinated debt expenses. The net expense ratio does not include amortisation of contractual relationships with clients. The Group net expense ratio in 2020 does not include the positive difference between the fair value of net assets acquired and the purchase price of the investment in Vita.

2021 financial position

€ million	31/12/2020	31/12/2021*	Change
			2021/2020
Group
Total assets	2,467.3	2,658.3	7.7%
Shareholders' equity	460.2	504.1	9.5%
Net technical provisions	1,600.3	1,703.9	6.5%
Book value per share (€)	29.70	32.53	9.5%

* Unaudited data.

Development of consolidated GPW

Development of consolidated GPW by insurance market

Global markets Sava Re reinsurance business Non-Group premiums: €112.1 m 2021/20: +5.0%

Unaudited data.

whole year 2020: +2.2%).

Structure of the investment portfolio

	31/12/2020	31/12/2021*
(€ million) portfolio Investment	1 535 3 ,	1 581 4 ,
bonds Government	0% 43	4% 45
bonds Corporate	40 3%	37 4%
Cash cash equivalents and	8% 4	7% 4
Infrastructure funds	1 8%	2 8%
Mutual funds	5% 2	3% 2
Shares	2 5%	2 3%
Deposits & CDs	5% 1	2% 1
Real funds estate	0 9%	1 0%
Investment property	1% 1	0 9%
Other	1 6%	2 0%
Total portfolio investment	100 0%	100 0%

Investment grade assets accounted for 84.5 % of fixed rate investments.

* Unaudited data.

2022 plan

Major development areas in 2022

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Key group performance metrics

	2020 actual	2021 actual*	2022 plan
Operating revenues	€680.8 m	€732.7 m	> €700 m
Profit, net of tax	€56.4 m	€76.2 m	> €60 m
Return on equity (ROE)	13.3%	15.8%	>= 11.5%
Net expense ratio**	29.5%	29.0%	31‒32%
Investment return**	1.6%	1.8%	1.4%
Net combined ratio** (reins. + non-life)	93.9%	88.3%	< 94%

* Unaudited data.

** Impact of exchange rate differences excluded. The investment return does not include subordinated debt expenses. The net expense ratio does not include amortisation of contractual relationships with clients. The Group net expense ratio in 2020 does not include the positive difference between the fair value of net assets acquired and the purchase price of the investment in Vita.

This plan is based on autumn forecasts for GDP growth in the countries where the Group is present and on expected relatively stable financial markets. It also assumes there will be no new lockdowns in 2022 or restrictions on movement like those imposed in these countries in 2020 and 2021.

Operating revenue by segment

Thank you for your attention.

Disclaimer

Forward-looking statements

This document may contain forward-looking statements relating to Sava Reʾs expectations, plans or goals, which are based on assumptions made by Sava Re management. By their nature, forward-looking statements involve risk and uncertainty. As a result, actual developments, in particular performance, may differ materially from expectations, plans and goals set out in this document; therefore, persons should not rely on forward-looking statements.

Duty to update

Sava Re assumes no obligation to adjust any forward-looking statements or other information contained in this document to future events or developments.