Pozavarovalnica Sava

Investor Presentation • Nov 25, 2024

Presentation of results 1–9/2024 Sava Insurance Group

22 November 2024

CONTENTS

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

GROUP RESULTS

Performance highlights

Sava Insurance Group / Presentation of results 1–9/2024 / Group results 4

Growth in gross premiums written of 14.5%

primarily in the motor business due to growth in average premiums and the number of policies sold

and in the life business due to increased sales of new policies and top-up premiums on existing policies

Better insurance service result: increased revenues and reduced impact from severe weather events, as well as better claims experience in the reinsurance and life segments

Better investment result: higher interest rates and more favourable financial market movements

Other significant events in 1–9/2024 and after 30/9/2024

Credit ratings reaffirmed: S&P Global Ratings and AM Best reaffirm Sava Re's "A" ratings (stable)

Subordinated bond issue: in October, Sava Re issues €50m in 5-year subordinated bonds with an annual coupon of 5.2%.

Net profit of €62.1m (1–9/2024: €36.5m)

€m % , except	1–9/2023	1–9/2024	plan 2024	Change 2024/2023
volume Business	710 3	814 7	925 >	7% 14
premiums written Gross	691 6	791 6		5% 14
Profit of , net tax	36 5	62 1	70 >	70 0%
equity* Return on	8 2%	12 9%	10 5% >	6 +4 pp
(non reinsurance) Combined -life and ratio	3% 96	7% 91	95% <	-4 5 pp
the portfolio* Return investment on	0% 2	5% 2	2% 2	+0 5 pp
	31/12/2023	30/9/2024	P31/12/2024
Equity	585 7	619 6		8% 5
(CSM) contractual service margin Net	149 4	165 0		4% 10
Total portfolio investment	1 503 3 ,	1 596 3 ,		6 2%
for benefit of the policyholders who bear the risk investment Assets	608 5	716 6		8% 17
funds in pension savings Assets company	1 174 7 ,	1 322 1 ,		5% 12
under fund Assets management at management company	541 8	674 8		24 6%

€m %	1–9/2023	1–9/2024	2024	Change
, except			plan	2024/2023
volume Business	710 3	814 7	925 >	7% 14
premiums written Gross	691 6	791 6		5% 14
Profit of , net tax	36 5	62 1	70 >	0% 70
equity* Return on	8 2%	12 9%	10 5% >	6 +4 pp
(non reinsurance) Combined -life and ratio	3% 96	7% 91	95% <	-4 5 pp
the portfolio* Return investment on	0% 2	5% 2	2% 2	+0 5 pp
	31/12/2023	30/9/2024	P31/12/2024
Equity	585 7	619 6		8% 5
(CSM) contractual service margin Net	149 4	165 0		4% 10
Total portfolio investment	1 503 3 ,	1 596 3 ,		6 2%
for the benefit of policyholders who bear the risk investment Assets	608 5	716 6		8% 17
funds in pension savings Assets company	1 174 7 ,	1 322 1 ,		5% 12
under fund Assets management at management company	541 8	674 8		6% 24

Key figures

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

Significant growth across all operating segments

Sava Insurance Group / Presentation of results 1–9/2024 / Group results 6

Gross premiums written by class of insurance

Business volume: inflationary price adjustments and organic growth

Sava Insurance Group / Presentation of results 1–9/2024 / Group results 7

Profit before tax: high revenue growth and favourable claims experience

Sava Insurance Group / Presentation of results 1–9/2024 / Group results 8

Profit before tax by segment (€m)

Profit before tax: substantial improvement in the EU non-life segment

Sava Insurance Group / Presentation of results 1–9/2024 / Group results 9

Impact of natural catastrophe losses on result

Sava Insurance Group / Presentation of results 1–9/2024 / Group results 10

Natural catastrophe claims (€m)

Includes net claims affecting the (re)insurance portfolios of the Group companies resulting from natural perils (such as windstorm, flood, earthquake and hail).

Growth in CSM

Sava Insurance Group / Presentation of results 1–9/2024 / Group results 11

CSM by segment (€m)

SEGMENT REPORTING

Non-life EU: premium growth and more favourable claims experience

Sava Insurance Group / Presentation of results 1–9/2024 / Segment reporting 13

- by price adjustments in line with inflation and an

-

Life EU: robust growth in unit-linked premiums

Reinsurance: no major loss events

Sava Insurance Group / Presentation of results 1–9/2024 / Segment reporting 15

Combined ratio Loss ratio Expense ratio

Non-life non-EU: deteriorated claims experience

Sava Insurance Group / Presentation of results 1–9/2024 / Segment reporting 16

-

and growth in the property business driven by bancassurance sales, an increase in premiums from policies, reflecting the acquisition of new policyholders

Life non-EU: revenue growth

Sava Insurance Group / Presentation of results 1–9/2024 / Segment reporting 17

growth

Pensions and asset management: robust growth in net fund inflows

Sava Insurance Group / Presentation of results 1–9/2024 / Segment reporting 18

"Other" segment

Sava Insurance Group / Presentation of results 1–9/2024 / Segment reporting 19

FINANCIAL INVESTMENTS

Growth in Group investment portfolio and assets under management

Sava Insurance Group / Presentation of results 1–9/2024 / Financial investments 21

€ m	31/12/2023	30/9/2024	Change	Index
portfolio Investment	1 503 3 ,	1 596 3 ,	93 0	106 2
€ m	1–9/2023	1–9/2024	Change	Index
investment income Net	21 8	28 6	6 8	131 0
income Interest	15 4	19 9	4 6	129 8
Change fair value of in FVTPL assets	1 4	3 0	1 7	218 6
Dividends and of alternative funds income	2 7	2 8	0 1	104 1
from associate companies Income	2 1	1 6	-0 5	76 9
income/expenses Other from investments	0 2	1 1	0 9	582 4
of Rate return	0% 2	5% 2	0 5 pp	-

31/12/2023	30/9/2024	Change	Index
1,503.3	1,596.3	93.0	106.2
1-9/2023	1-9/2024	Change	Index
21.8	23.6	6.8	1.31.0
15.4	19.9	4.6	129.8
1.4	3.0	1.7	218.6
2.7	2.8	0.1	104.1
2.1	1.6	-0.5	76.9
0.2	1.1	0.9	582.4
2.0%	2.5%	0.5 pp

Improved return on investment portfolio

Sava Insurance Group / Presentation of results 1–9/2024 / Financial investments 22

• The increase in interest income reflects higher interest rates and the reinvestment of maturing, lower yielding investments at higher yields
• Positive contribution from FVTPL portfolio driven by favourable equity and debt market performance

The investment portfolio and net investment income are shown net of the assets held for the benefit of policyholders who bear the investment risk.

€m	31/12/2023	30/9/2024	Difference
Fixed-rate investments	302 1 4 ,	381 6 1 ,	79 1
bonds Government	819 1	861 3	42 2
and financial bonds Corporate	457 7	493 2	35 4
& Deposits CDs	25 6	27 1	1 5
Shares and mutual funds	40 3	44 5	2 4
Shares	21 8	23 8	2 0
Mutual funds	18 6	20 8	2 2
funds Alternative	71 2	71 7	0 4
Investment property	24 9	24 3	-0 6
Cash and cash equivalents	39 8	48 2	8 4
associated in companies Investments	23 8	25 5	1 6
Other	0 8	0 6	-0 2
Total portfolio investment	503 3 1 ,	596 3 1 ,	93 0

Large share of fixed-rate investments

Sava Insurance Group / Presentation of results 1–9/2024 / Financial investments 23

• Investing in highly rated government and corporate bonds to maintain a safe and liquid portfolio • Reinvestment yield for the third quarter at approximately 2.8%

The investment portfolio is shown net of the assets held for the benefit of policyholders who bear the investment risk.

€m	31/12/2023	30/9/2024	Difference
Fixed-rate investments	1 302 4 ,	1 381 6 ,	79 1
bonds Government	819 1	861 3	42 2
and financial bonds Corporate	374 7	414 9	40 2
Covered bonds	52 4	6 54	2 2
Subordinated bonds	30 5	23 7	-6 9
& Deposits CDs	25 6	27 1	1 5

Large share of government bonds

Sava Insurance Group / Presentation of results 1–9/2024 / Financial investments 24

Composition of fixed-rate investments

The fixed-rate investment portfolio is shown net of the assets held for the benefit of policyholders who bear the investment risk.

The fixed-rate investment portfolio is shown net of the assets held for the benefit of policyholders who bear the investment risk.

Sava Insurance Group / Presentation of results 1–9/2024 / Financial investments 25

SAVA RE SHARE AND DIVIDEND POLICY

Shareholders and share trading

Sava Insurance Group / Presentation of results 1–9/2024 / Sava Re share and dividend policy

	30/9/2024
Trading symbol	POSR
Market capitalisation (€m)	616.8
No. of shares issued	17,219,662
No. of treasury shares	1,721,966
No. of shareholders	4,371

High dividend yield

Sava Insurance Group / Presentation of results 1–9/2024 / Sava Re share and dividend policy 28

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

• On 27 May 2024, the general meeting of shareholders approved the dividend proposal of €27,120,968 or €1.75 gross per share. The dividend was paid on 12 June 2024 to shareholders of record on 11 June 2024.

SOLVENCY POSITION

Solid solvency position

For more information: ir@sava-re.si

Thank you.

Cautionary statements and notes

Forward-looking statements

This document may contain forward-looking statements relating to the expectations, plans or goals of the Sava Insurance Group (the Group), which are based on estimates and assumptions made by the management of Sava Re (the Company). By their nature, forwardlooking statements involve known and unknown risks and uncertainties. As a result, actual developments, in particular performance, may differ materially from the expectations, plans and goals set out in this document; therefore, persons should not rely on forwardlooking statements.

Duty to update

The Group and the Company assume no obligation to update or revise any forward-looking statements or other information contained in this document, except to the extent required by applicable laws and regulations.

Alternative performance measures

This document may contain certain alternative performance measures used by the Company's management to monitor the business, financial performance and financial position of the Group and to provide investors with additional information that management believes may be useful and relevant to understanding the Group's results. These alternative performance measures or benchmarks generally do not have a standardised meaning and therefore may not be comparable to similarly defined benchmarks used by other companies. Therefore, such measures should not be considered in isolation from, or in place of, the Group's consolidated financial statements and the related notes prepared in accordance with IFRS standards.

Data not audited

The consolidated financial statements presented in this document are unaudited.

Rounding

All calculations are based on exact figures, including decimals, which is why rounding differences may occur.