Pozavarovalnica Sava

Investor Presentation • Nov 20, 2023

1–9/2023 unaudited results Sava Insurance Group

17 November 2023

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.

CONTENTS

• Group results
• Segment reporting
• Financial investments
• POSR share and dividend policy
• Solvency position

GROUP RESULTS

Highlights 1–9/2023

Sava Insurance Group / Group results 5 / ³¹

Growth in gross written premiums of 13.7%

strongest growth in motor business, reflecting more policies sold and higher average premiums

and in reinsurance driven by higher rates in global reinsurance markets, and the capture of new business opportunities

Net profit of €36.5 million (1–9/2022: €35.0 million)

Weaker insurance service result for nonlife, EU: this year impact of storms and floods, last year claims inflation

Better insurance service result for reinsurance: higher insurance revenue, different claims structure (major claims covered by reinsurance) and a lower impact of inflation than in the previous year

Better investment result: in 1–9/2022, a significant negative impact of financial market developments on the net investment return from fair value losses on FVTPL investments

In the summer of 2023, Slovenia and the wider region were hit by a wave of storms and floods with a significantly impact on Q3 earnings of €27.1 million

Due to the favourable development of reinsurance results in international markets, asset management and pensions, the Company estimates that the result could be closer to the original plan by the end of the year

Key figures

* Return on equity excludes accumulated other comprehensive income/loss. Investment portfolio return excludes subordinated debt expense.

million € % , except	1–9/2022	1–9/2023	plan 2023	Change 2023/2022
volume Business	625 3	711 2	800 >	13 7%
Gross premiums written	608 3	691 6		13 7%
Insurance revenue	9 447	517 7		6% 15
Profit of , net tax	35 0	36 5	53 >	5% 4
equity* Return on	8 2%	8 2%	9 5% >	-0 0 p.p.
(non -life reinsurance) Combined and ratio	92 6%	96 2%	95% <	+3 7 p.p.
portfolio* the investment Return on	0 5%	2 0%	5% 1 >	+1 5 p.p.
	31/12/2022	30/9/2023	31/12/P2023
Equity	530 6	548 2		3% 3
(CSM) contractual service margin Net	129 4	138 1		7% 6
Total portfolio investment	1 415 2 ,	1 476 6 ,		3% 4
for the benefit of policyholders who bear the risk investment Assets	498 8	561 0		5% 12
funds in pension savings Assets company	1 013 3 ,	1 119 9 ,		5% 10
under fund Assets management at management company	494 4	570 9		5% 15
liabilites from and insurance reinsurance Net contracts	1 410 1 ,	1 512 5 ,		3% 7

Continued growth across all operating segments

Sava Insurance Group / Group results 7 / ³¹

Gross premiums written by class of insurance

Business volume: organic growth and price adjustment for inflation

Adverse impact of weather events and strong profit growth in reinsurance

Adverse impact of weather events and strong profit growth in reinsurance

CSM growth across all business segments

SEGMENT REPORTING

Non-life EU: profits impacted by severe weather events in the summer

Sava Insurance Group / Segment reporting 13 / ³¹

-

Life EU: higher profit due to improved financial market developments

Sava Insurance Group / Segment reporting 14 / ³¹

• Sales stronger than last year
• Business mix shifts towards life risk products with a higher share of premiums included in insurance revenue than savings products

• Insurance service revenue higher reflecting shift in business mix (more risk policies without an investment component, which is not included in insurance revenue)
• Slightly higher incurred claims driven by higher mortality and accident frequency

• In 1–9/2022: adverse impact of change in fair value of FVTPL investments due to financial market conditions

Reinsurance: benign loss ratio

• Favourable rate developments in reinsurance markets
• Organic growth in business volume
• More than 20% increase in premiums of nonproportional reinsurance, particularly in the EU

• Higher insurance revenue reflecting growth in nonproportional business
• Different mix of major claims, which triggered the Group's reinsurance protection to a greater extent, resulting in higher cessions to reinsurers
• Impact of inflation on incurred claims in 1–9/2022

Non-life non-EU: adverse loss experience

Sava Insurance Group / Segment reporting 16 / ³¹

• Growth in motor, health and property, driven by both organic growth and price increases

-

Life non-EU: strong revenue growth

• Higher insurance revenue due to portfolio growth • Higher interest revenue reflecting portfolio growth and higher reinvestment rates

Pensions and asset management: robust growth in net fund inflows

• Negative impact in 1–9/2022 from change in fair value of FVTPL investments and provisioning for non-achievement of guaranteed returns due to adverse financial market movements

• Positive net inflows in all companies and more favourable financial market trends

"Other" segment: higher profits for healthcare and assistance services

FINANCIAL INVESTMENTS

Growth in assets under management

± x.y% – growth/decline compared to the end of the previous year.

Improved return on the investment portfolio

• Positive contribution from FVTPL portfolio driven by favourable performance of equity investments
• Higher interest revenue due to (re)investment in higher yielding investments

million €	1–9/2022	1–9/2023	Difference
effective the income interest Interest at rate	11 2	14 7	3 5
Change fair value of in FVTPL assets	-10 3	1 4	11 7
Gains/losses disposal of assets on	0 0	-0 3	-0 3
(ECL) Change expected credit losses in	0 2	0 2	-0 1
income/expenses Other from investments	4 5	8 5	3 1
investment income Net	5 6	21 8	16 2
of Rate return	0 5%	2 0%	+1 5 p.p.

million €	31/12/2022	30/9/2023	Difference
Fixed-rate investments	1 173 6 ,	1 221 9 ,	48 2
bonds Government	734 5	745 2	10 7
bonds Corporate	420 3	448 7	28 4
Deposits & CDs	18 8	28 0	9 1
Shares and funds	47 0	40 6	-6 5
Shares	24 9	23 2	-1 7
Mutual funds	22 2	17 4	-4 8
Alternative investments	93 1	95 4	2 2
Infrastructure funds	53 9	57 6	3 8
Real funds estate	16 5	15 1	-1 4
Investment property	22 8	22 6	-0 2
Cash and cash equivalents	78 3	94 2	9 15
Other	23 1	24 5	1 5
Total portfolio investment	2 1 415 ,	476 6 1 ,	61 3

Investment portfolio: 82.7% fixed-rate

• Maintaining a safe and liquid portfolio by investing in top-rated
• government and corporate bonds
• Reduced exposure to equities
• Increased focus on providing liquidity without impacting the bottom line • Q3 reinvestment yield of around 3.5% compared to 3.3% for 1–9/2023

Investment portfolio: 85.4% FVOCI assets

Sava Insurance Group / Financial investments 24 / ³¹

• No significant change in asset allocation since year-end

Secure and stable investment portfolio

Sava Insurance Group / Financial investments 25 / ³¹

POSR SHARE AND DIVIDEND POLICY

Shareholders and share trading

* Custody account.

Sava Insurance Group / POSR share and dividend policy

* Higher book value of share as a result of higher equity following transition to IFRS 17 and IFRS 9.

	30/9/2023
Share capital (€ million)	71.9
Market capitalisation (€ million)	365.7
Trading symbol	POSR
No. of shares	17,219,662
No. of own shares	1,721,966
No. of shareholders	4,357

30/6/202

Improved dividend yield

• On 5 June 2023, the general meeting of shareholders approved the dividend proposal of €24,796,313.60 or €1.60 gross per share. The dividend was paid on 21 June 2023 to shareholders registered in the share register on 20 June 2023.

Dividend policy: distribution of between 35% and 45% of the net profit of the Sava Insurance Group.

SOLVENCY POSITION

Solid solvency position

For more information: ir@sava-re.si

Thank you.