Pozavarovalnica Sava

Quarterly Report • May 19, 2025

Statement of Results of the Sava Insurance Group for January–March 2025

Ljubljana, May 2025

1		Financial highlights	3
2		Macroeconomic environment	3
3	Review of Group operations 4
	3.1	Non-life segment 5
	3.2	Life segment 6
	3.3	Reinsurance segment 7
	3.4	Pensions and asset management segment 7
	3.5	"Other" segment 8
4		Financial position	8
	4.1	Equity and solvency 8
	4.2	Net insurance contract liabilities 9
	4.3	Investment portfolio 10
5		Shareholder value 10
6		Risk management10
7	Progress on the business plan11
8	Significant events in the reporting period 11
9	Significant events after the reporting date12
10	About the Sava Insurance Group 12
11	Cautionary statements and notes12
	Appendices14

1 Financial highlights

EUR million	1–3/2025	1–3/2024	Change	Index
Business volume	328.7	307.8	20.9	106.8
Insurance result1	33.9	29.8	4.1	113.8
Finance result2	2.3	5.0	-2.7	46.2
Other net income3	3.1	3.2	-0.1	97.2
Net profit for the period	30.9	29.8	1.1	103.7
	31 March 2025	31 December 2024	Change	Index
Equity	681.3	648.6	32.7	105.0
Contractual service margin	183.6	175.6	8.0	104.5
Investment portfolio	1,696.2	1,666.9	29.3	101.8
Total assets	2,906.7	2,885.4	21.2	100.7
Assets under management	2,859.4	2,889.4	-30.0	99.0
	1–3/2025	1–3/2024	Change	Index
Combined ratio	83.7%	83.8%	-0.1 pp	–
Loss ratio	57.3%	57.9%	-0.6 pp	–
Expense ratio	26.3%	25.8%	+0.5 pp	–
Return on equity (ROE)	17.2%	18.0%	-0.8 pp	–
Return on investment portfolio	2.0%	2.7%	-0.7 pp	–
Solvency ratio	211%–217%	193%–199%	–	–

The terms and ratios are defined in the appended glossary.

2 Macroeconomic environment

Euro area economic activity increased by 0.1% in the fourth quarter of 2024, and the European Central Bank's (ECB) forecasts for economic growth over the next two years remain moderate (0.9% in 2025 and 1.2% in 2026). The expected moderate economic growth is mainly due to higher trade barriers and political uncertainty, which are holding back investment and consumption. Annual inflation in the euro area stabilised at 2.2% at the end of March 2025, close to the ECB's target of around 2%. A stable inflation outlook and low economic growth prompted the ECB to cut its key interest rate by 0.25 percentage points in the first quarter of the year.

According to initial estimates, economic activity in Slovenia continued to grow at a relatively favourable pace in the first quarter of this year, with inflation hovering at around 2%. Industrial production is weakening, and there are signs of a moderation in domestic spending.

In the first quarter of 2025, global equity indices fluctuated under the impact of increased uncertainty caused by the Trump administration's announcement of toughertrade policies with major US partners. This uncertainty had a negative impact on equity markets, particularly in the US.

Yields on short-term German government bonds fell sharply in the first quarter, positively impacting shorter-dated bonds, whereas yields on longer-dated bonds rose, negatively impacting the values of longer-dated bonds. There were no major changes in credit spreads affecting the value of bond investments during the first quarter.

¹ As from 2025, the Group has adjusted the insurance result to include the non-attributable expenses of its insurance companies. This brings the Group's recognition of non-attributable expenses in line with other major insurance companies. In substance, this change follows the approach used in the calculation of the combined ratio, which has included non-attributable expenses since the adoption of IFRS 17.

² As from 2025, the Group has adjusted the finance result to include the share of profit or loss of investments in subsidiaries and investments accounted for using the equity method. The Group has made this reclassification to align the presentation with the content of net investment income on the investment portfolio. In addition, the Group has also included expenses from financial liabilities in the finance result.

³ The presentation of other net income has changed in line with the changes in the insurance result and the finance result.

3 Review of Group operations

Business volume grew by 6.8% year on year to EUR 328.7 million in the first quarter of 2025, mainly driven by growth in gross written premiums in the non-life and life segments. In the non-life business, this growth was generated by rate increases in 2024 and organic business growth, and in the life business by strong sales of new policies and top-ups of existing policies. Business volume increased in all segments.

The insurance result totalled EUR 33.9 million, an increase of EUR 4.1 million, mainly driven by an 11.8% increase in revenue. Revenue grew in all segments, most notably in the non-life segment. This also led to an improvement in the combined ratio, which stood at 83.7%. The combined ratio is typically very favourable in the first quarter because of the seasonal nature of natural catastrophes, which statistically occur most frequently in the summer.

The finance result was EUR 2.3 million, down by EUR 2.7 million compared to the previous year, mainly due to a lower investment result reflecting lower income from financial investments measured at fair value through profit or loss (FVTPL) due to the less favourable developments in the financial markets.

Profit after tax increased by EUR 1.1 million to EUR 30.9 million in the first quarter of 2025.

Equity was EUR 681.3 million, up by 5.0% compared to the end of 2024, due to the profit generated in the first quarter of 2025 and the positive change in other comprehensive income.

Annualised return on equity was 17.2%, slightly down year on year as a result of the increase in equity.

The contractual service margin increased by EUR 8.0 million, particularly in the reinsurance segment, where, due to the nature of the business, most of the new contractual service margin is generated at the beginning of the year. In the life segment, the contractual service margin increased by EUR 0.8 million as a result of strong new business sales, but it was negatively impacted by adverse movements in the stock markets. New life insurance sales in the first quarter of 2025 generated a new contractual service margin of EUR 7.3 million, up by 9.6% year on year.

The investment portfolio increased to EUR 1,696.2 million. Fixed-rate financial investments remained the largest part of the portfolio (86.9%). The return on the investment portfolio decreased by 0.7 percentage points to 2.0% due to the aforementioned lower income from FVTPL investments.

Assets under management totalled EUR 2,859.4 million and decreased by 1.0%, despite positive net inflows from all companies in the pensions and asset management segment, as well as from unit-linked funds, owing to unfavourable developments in equity markets. Net inflows to the funds of the pension and asset management companies grew by 15.6% compared to the first quarter of 2024.

The estimated solvency position as at 31 March 2025 demonstrates that the Group is well capitalised, with an estimated solvency ratio between 211% and 217% (31 December 2024: 208%).

3.1 Non-life segment

EUR	1–3/2025	1–3/2024	Change	Index
Gross premiums written	203,526,046	190,152,346	13,373,700	107.0
EU	173,890,555	164,569,170	9,321,385	105.7
Non-EU	29,635,491	25,583,176	4,052,316	115.8
Insurance result	21,570,920	17,271,979	4,298,942	124.9
EU	20,620,058	16,492,622	4,127,435	125.0
Non-EU	950,862	779,356	171,506	122.0
Finance result	1,185,802	2,969,015	-1,783,212	39.9
EU	679,532	2,344,834	-1,665,302	29.0
Non-EU	506,271	624,181	-117,910	81.1
Other net income	840,859	1,695,730	-854,872	49.6
EU	658,959	1,501,293	-842,335	43.9
Non-EU	181,900	194,437	-12,537	93.6
Profit before tax	23,597,581	21,936,724	1,660,858	107.6
EU	21,958,548	20,338,750	1,619,799	108.0
Non-EU	1,639,033	1,597,974	41,059	102.6
Combined ratio	86.1%	86.9%	-0.8 pp	–
EU	84.3%	85.1%	-0.8 pp	–
Non-EU	95.7%	95.9%	-0.2 pp	–
Loss ratio	57.4%	59.1%	-1.7 pp	–
EU	57.3%	59.1%	-1.8 pp	–
Non-EU	57.8%	58.9%	-1.1 pp	–
Expense ratio	28.7%	27.8%	+0.9 pp	–
EU	27.0%	26.0%	+1.0 pp	–
Non-EU	37.9%	37.0%	+0.9 pp	–

Non-life gross written premiums increased by 7.0%. Growth was achieved in all the markets, with the EU markets up by 5.7% and the non-EU markets up by 15.8%. The largest contributor to premium growth in the EU markets was motor insurance, particularly in the private passenger car segment. This growth was due both to higher premium rates in response to the increase in the cost of car parts and repair services, as well as to the attraction of new policyholders and the increase in the number of policies sold. Premium growth was also quite strong in the property business, in both the commercial and personal lines. In the non-EU markets, motor insurance also had the largest impact on premium growth, through both rate increases and increased policy sales. Growth in property premiums was driven by stronger bancassurance sales.

The insurance result improved by EUR 4.3 million, or 24.9%, compared to the first quarter of last year. In the EU markets, the improvement was primarily driven by growth in insurance revenue, whereas in the non-EU markets it was driven by revenue growth and slightly more favourable claims experience.

The combined ratio was 86.1%, an improvement of 0.8 percentage points. There were improvements in both the EU (0.8 percentage points) and non-EU markets (0.2 percentage points). In all the markets, the combined ratio improved, driven by the loss ratio as a result of growth in insurance revenue. The expense ratio increased due to one-off other income in the first quarter of the previous year.

The finance result was EUR 1.8 million lower, especially in the EU markets, due to lower income from FVTPL investments as a result of the situation on equity markets.

Profit before tax increased by EUR 1.7 million to EUR 23.6 million.

3.2 Life segment

EUR	1–3/2025	1–3/2024	Change	Index
Gross premiums written	58,900,293	54,643,300	4,256,993	107.8
EU	55,196,752	51,345,832	3,850,919	107.5
Non-EU	3,703,541	3,297,467	406,074	112.3
Insurance result	4,043,225	3,943,055	100,171	102.5
EU	3,884,613	3,707,121	177,492	104.8
Non-EU	158,612	235,934	-77,321	67.2
Finance result	1,426,289	1,192,892	233,397	119.6
EU	1,276,908	1,075,951	200,957	118.7
Non-EU	149,381	116,941	32,440	127.7
Other net income/expenses	-60,152	-226,292	166,139	26.6
EU	-68,300	-187,850	119,550	36.4
Non-EU	8,148	-38,442	46,590	-21.2
Profit before tax	5,409,362	4,909,655	499,707	110.2
EU	5,093,221	4,595,222	497,999	110.8
Non-EU	316,141	314,433	1,708	100.5
	31 March 2025	31 December 2024	Change	Index
Contractual service margin (CSM)	161,769,329	160,952,422	816,907	100.5
EU	150,702,914	150,395,541	307,372	100.2
Non-EU	11,066,415	10,556,880	509,535	104.8

Gross written premiums of the EU-based life insurers increased by 7.5%, driven by higher sales of both life risk policies and top-up premiums on existing unit-linked policies. Our life insurers outside the EU managed to increase gross written premiums by 12.3%, reflecting very strong sales of risk products, while sales of unit-linked products also continued to grow strongly.

The insurance result improved by EUR 0.1 million due to revenue growth.

The finance result improved by EUR 0.2 million in the EU markets, reflecting lower insurance finance expenses as a result of the reduction in the traditional life portfolio. In the non-EU markets, the higher finance result was driven by higher interest income.

Profit before tax was EUR 5.4 million, up by 10.2%.

The increase in the contractual service margin was achieved through new business, partially offset by unfavourable equity market performance, which reduced the value of unit-linked assets and therefore future revenue from the management of these assets. New life insurance sales in the first quarter of 2025 generated a new contractual service margin of EUR 7.3 million, up by 9.6% year on year.

Movement in contractual service margin

3.3 Reinsurance segment

EUR	1–3/2025	1–3/2024	Change	Index
Gross premiums written	56,554,341	55,036,513	1,517,828	102.8
Insurance result	8,208,660	8,505,590	-296,930	96.5
Finance result	402,459	571,674	-169,215	70.4
Other net income/expenses	48,531	-74,749	123,280	-64.9
Profit before tax	8,659,649	9,002,514	-342,865	96.2
Combined ratio	68.4%	65.3%	+3.1 pp	–
Loss ratio	56.9%	51.2%	+5.8 pp	–
Expense ratio	11.5%	14.1%	-2.6 pp	–

Gross premiums grew by EUR 1.5 million, despite the softening in reinsurance markets, driven by organic business growth and new opportunities in certain global markets.

The insurance result was EUR 0.3 million lower due to higher incurred claims.

While the combined ratio deteriorated by 3.1 percentage points compared to the same period last year due to higher claims, it remained very favourable at 68.4%. The expense ratio improved due to methodological adjustments to acquisition costs that more accurately reflect their level.

The finance result decreased by EUR 0.2 million, reflecting higher finance expenses as a result of the increase in insurance contract liabilities.

Profit before tax was EUR 8.7 million, slightly down on last year.

EUR	1–3/2025	1–3/2024	Change	Index
Business volume	8,053,583	6,609,585	1,443,998	121.8
Asset management revenue	6,617,765	5,462,306	1,155,459	121.2
Gross premiums written (annuities)	1,435,818	1,147,279	288,539	125.1
Expenses	-4,285,169	-3,685,093	-600,076	116.3
Cost-to-income ratio (CIR)4	49.6%	53.6%	-4.0 pp	–
Profit before tax	2,668,748	2,142,851	525,897	124.5
EUR	31 March 2025	31 December 2024	Change	Index
Assets under management	2,107,553,383	2,125,101,190	-17,547,807	99.2

3.4 Pensions and asset management segment

The business volume amounted to EUR 8.1 million and grew by a remarkable 21.8%, reflecting a strong increase in asset management revenue and gross annuity premiums. The increase in asset management revenue is due to the higher value of assets under management, while gross annuity premiums increased as a result of a higher number of policies written.

Costs amounted to EUR 4.3 million, up by 16.3%, primarily due to higher distribution channel commissions as a result of higher assets under management and higher new inflows. Nevertheless, strong growth in income led to a 4.0 percentage point improvement in the cost-to-income ratio.

As a result, profit before tax increased by EUR 0.5 million to EUR 2.7 million.

⁴ The calculation methodology was changed to align it with that of other insurance groups. Commission income is included at the net amount after deduction of commission expenses, which reduces the CIR.

Assets under management totalled EUR 2.1 billion, down by EUR 17.5 million due to the adverse movements in equity markets. New net inflows amounted to EUR 51.5 million, an increase of 15.6% year on year.

3.5 "Other" segment

EUR	1–3/2025	1–3/2024	Change	Index
Revenue	2,199,316	2,118,613	80,703	103.8
Expenses	3,191,680	2,082,411	1,109,269	153.3
Profit or loss before tax	-992,365	36,202	-1,028,566	–

The pre-tax result was EUR 1.0 million lower year on year despite the higher profit from assistance services, mainly because of higher subordinated debt expenses following the issuance of a subordinated bond in October 2024.

4 Financial position

The following is a discussion of assets and liabilities that is relevant to understanding the Group's financial position.

EUR	31 March 2025	31 December 2024	Change	Index
Equity	681,254,700	648,560,456	32,694,245	105.0
Subordinated liabilities	126,426,766	125,058,474	1,368,292	101.1
Net insurance contract liabilities*, of which	1,795,164,793	1,820,525,607	-25,360,814	98.6
Contractual service margin (CSM)	183,560,426	175,577,253	7,983,173	104.5
Investment portfolio	1,696,230,003	1,666,922,164	29,307,838	101.8
Total assets	2,906,652,417	2,885,408,613	21,243,804	100.7
Assets under management	2,859,385,164	2,889,371,944	-29,986,781	99.0

* Insurance contract liabilities, net of insurance contract assets.

4.1 Equity and solvency

Equity amounted to EUR 681.3 million, up by EUR 32.7 million compared to the end of 2024. The increase is due to the profit for the first quarter of 2025 and the positive change in other comprehensive income.

The Group's estimated solvency position as at 31 March 2025 shows that the Group is well capitalised, as its solvency ratio is estimated to be in the range of 211% to 217% (31 December 2024: 208%). The Group's solvency ratio is thus significantly above the regulatory requirement of 100% and, according to internal criteria, is just above the optimal solvency ratio range of 170% to 210%.

Capital adequacy of the Sava Insurance Group

4.2 Net insurance contract liabilities

Net insurance contract liabilities amounted to EUR 1,795.2 million, down by EUR 25.4 million compared to the previous year, mainly due to a decrease in the life portfolio as a result of the maturing of the traditional life portfolio and a decrease in the value of unit-linked assets reflecting the drop in assets held in funds as a result of the adverse movements in the financial markets.

As at 31 March 2025, the contractual service margin amounted to EUR 183.6 million, with the net contractual service margin at EUR 172.1 million. The contractual service margin increased by EUR 8.0 million, most of which relates to the reinsurance segment, where, due to the nature of the business, most of the new contractual service margin is generated at the beginning of the year. In the life segment, the contractual service margin increased by EUR 0.8 million as a result of strong new business sales, but it was negatively impacted by adverse movements in the stock markets. New life insurance sales in the first quarter of 2025 generated a new contractual service margin of EUR 7.3 million, up by 9.6% year on year.

4.3 Investment portfolio

The investment portfolio of the Sava Insurance Group increased by EUR 29.3 million, or 1.8%, compared to year-end 2024. The increase was mainly driven by positive cash flow from operating activities. As at 31 March 2025, fixed-rate investments represented the largest portion of the investment portfolio, at 86.9%. Compared to the end of the previous year, they increased by EUR 20.4 million. The asset allocation did not change significantly compared to the end of 2024.

EUR	31 March 2025	31 December 2024	Change	Index
Investment portfolio position	1,696,230,003	1,666,922,164	29,307,839	101.8
EUR	1–3/2025	1–3/2024	Change	Index
Net investment income on investment portfolio	8,410,065	9,926,016	-1,515,951	84.7
Interest income	7,536,430	6,434,535	1,101,895	117.1
Change in fair value of FVTPL investments	129,726	2,124,545	-1,994,819	6.1
Dividends from equity investments and income from alternative funds	289,135	645,635	-356,500	44.8
Income from associate companies	488,653	774,574	-285,921	63.1
Other investment income or expenses	-33,879	-53,273	19,394	63.6
Return on investment portfolio	2.0%	2.7%	-0.7 pp	–

Investment portfolio⁵ , net investment income and investment return

Net investment income and the return on the investment portfolio are lower compared to 2024, mainly due to the negative revaluation of alternative and mutual funds, as US equity markets ended the first quarter in negative territory. Notwithstanding the above, the change in the fair value of FVTPL investments was positive, supported by the revaluation of unquoted shares. Net investment income for the period was EUR 8.4 million, representing a return of 2.0%.

5 Shareholder value

Earnings per share

Earnings per share increased to EUR 1.99 in the first quarter of 2025 (up by 3.6% compared to the first quarter of 2024).

	1–3/2025	1–3/2024
Number of issued shares (excluding treasury shares)	15,497,696	15,497,696
Net earnings per share (EUR)	1.99	1.92
Book value per share at end of period (EUR)	43.96	39.40
Share price at end of period (EUR)	48.40	31.40

Return on equity

Annualised return on equity was 17.2%, slightly down year on year as a result of the increase in equity.

6 Risk management

In the first quarter, financial and strategic risks were negatively impacted by uncertain macroeconomic conditions and related stock market developments. Other risks to which the Group is exposed did not change significantly in the first quarter of 2025 compared to the same period in 2024.

⁵ A more detailed breakdown of the investment portfolio is provided in appendix 6.

The macroeconomic and geopolitical environment remained uncertain in the first quarter of 2025, and we expect increased uncertainty later in the year. We are therefore closely monitoring the situation within the Group and responding as appropriate. For more information on the macroeconomic environment, please refer to section 2 Macroeconomic environment. Financial risks were at a high level in the first quarter of 2025.

With regard to underwriting risks, the Group did not experience any significant impact on its business results from loss events in the first quarter of 2025. Underwriting risks are among the most significant risks and are therefore carefully managed by the Group.

In the first quarter of 2025, the Group's exposure to strategic and operational risks was at a comparable level to the previous year, and the Group sought to mitigate these risks appropriately. The Group also successfully managed and controlled liquidity risk.

7 Progress on the business plan

In the first quarter of 2025, the Sava Insurance Group successfully implemented its 2025 business plan, achieving approximately 30% of the planned business volume for the full year 2025. Net profit for the period was EUR 30.9 million, representing 36.8% of the lower end of the 2025 full-year target range for net profit. All other key performance indicators were also well ahead of their (pro-rata) annual targets.

There were no major loss events (such as hailstorms, windstorms or floods) in the first quarter of 2025, but such events typically occur every year and are therefore factored into the Group's business plan. Statistically, natural catastrophes have the greatest impact on the Group's performance in the second and third quarters. The Group remains exposed to major losses and increased loss frequency throughout the year, as well as financial market volatility and other potential environmental factors. Therefore, despite the favourable first quarter, it is premature to make any changes to the full-year profit guidance that would deviate from the Group's 2025 business plan.

EUR million	1–3/2025	2025 plan	As % of plan
Business volume growth	6.8%	> 5%	✓
Return on equity	17.2%	> 11%	✓
Profit, net of tax	30.9	> 84	36.8%
Solvency ratio	211%–217%	170%–210%	✓
Combined ratio	83.7%	< 94%	✓

Actuals versus targets in 2025

8 Significant events in the reporting period

• In early 2025, the subsidiary Vita S Holding established the private healthcare provider PZU Vita S Skopje.
• In January 2025, a petition was filed to initiate the dissolution of Asistim under the summary procedure without liquidation. In March 2025, the company was struck off the register of companies.
• Davor I. Gjivoje Jr began his third four-year term of office as a member of the supervisory board on 9 March 2025. The supervisory board of Sava Re re-elected him as chairman of the supervisory board for the new term of office.

9 Significant events after the reporting date

• In April 2025, the notice of the 41st general meeting of shareholders to be held on 26 May 2025 was published.
• In April 2025, Sava Re received notification that Croatia Osiguranje d.d. had acquired 838,197 POSR shares from its parent company Adris Grupa d.d. on 4 April 2025. The total shareholding of related parties of Adris Grupa in Sava Re remained unchanged after the transaction and amounted to 19.04%.

10 About the Sava Insurance Group

The Sava Insurance Group is a customer-centric, flexible and sustainability-oriented insurance group doing business in over 120 insurance and reinsurance markets worldwide. The Group is a provider of primary insurance, reinsurance, asset management and retirement solutions. Sava Re d.d., the parent company and reinsurer, serves more than 500 clients worldwide. With a presence in six countries in the Adriatic region, the Group is one of the larger insurance groups based in south-eastern Europe. Sava Re has an "A" financial strength rating and issuer credit rating from both S&P Global Ratings (A/positive/) and AM Best (A/stable/). For more information about the Sava Insurance Group, please visit www.sava-re.si/en-si/sava-insurance-group/profile.

11 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, forward-looking 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 forward-looking 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.

Legal basis for the preparation of this document

This document has been prepared on the basis of the Market in Financial Instruments Act, the rules of the Ljubljana Stock Exchange, and other laws and regulations applicable in Slovenia.

The Company's supervisory board reviewed this document at its session on 15 May 2025. The document is available on the Company's website.

Translation

This document was originally prepared in Slovenian. While every effort has been made to ensure a complete and accurate translation into English, some linguistic inconsistencies may still occur in such translations. Please note that only the Slovenian original is binding.

Appendices

1. Consolidated income statement by operating segment

EUR												Pensions and asset
	Non-life, EU Non-life, non-EU		Life, EU Life, non-EU			Reinsurance		management		Other		Total
	1–3/2025	1–3/2024	1–3/2025	1–3/2024	1–3/2025	1–3/2024	1–3/2025	1–3/2024	1–3/2025	1–3/2024	1–3/2025	1–3/2024	1–3/2025	1–3/2024	1–3/2025	1–3/2024
Insurance revenue		135,466,392 120,615,968	26,186,731	23,769,778	17,904,041	15,661,935	2,276,388	1,680,702	26,117,856	24,276,972	150,034	134,565	0	0	208,101,442	186,139,920
Insurance service expenses, including non
attributable expenses		-111,178,778 -93,873,598 -23,382,691 -21,717,099 -13,895,063 -11,903,705 -2,119,732							-1,444,768 -15,884,953 -13,981,435		-56,438	-51,474	0		0 -166,517,656 -142,972,080
Claims incurred		-72,234,482 -59,704,833 -13,347,705 -12,611,159			-4,399,648	-3,982,961	-885,837		-509,016 -11,885,331	-9,644,635	-29,088	-24,289	0		0 -102,782,090	-86,476,893
Operating expenses, including
non-attributable expenses		-37,195,075 -32,817,863 -10,106,062		-9,000,110	-9,583,840		-7,855,958 -1,296,350	-1,051,009	-3,044,931	-3,352,206	-31,062	-29,200	0	0	-61,257,321	-54,106,347
Onerous contracts	-1,749,221	-1,350,902	71,075	-105,830	88,425	-64,786	62,455	115,257	-954,692	-984,594	3,712	2,015	0	0	-2,478,246	-2,388,840
Result before reinsurance	24,287,614	26,742,370	2,804,040	2,052,679	4,008,978	3,758,230	156,656	235,934	10,232,903	10,295,537	93,596	83,091	0	0	41,583,786	43,167,840
Reinsurance result		-3,667,556 -10,249,747	-1,853,178	-1,273,323	-124,365	-51,109	1,957	0	-2,024,243	-1,789,947	0	0	0	0	-7,667,385	-13,364,126
Insurance result	20,620,058	16,492,622	950,862	779,356	3,884,613	3,707,121	158,612	235,934	8,208,660	8,505,590	93,596	83,091	0	0	33,916,401	29,803,714
	0	0	0	0	0	0	0	0	0	0					0	0
Investment result	2,328,007	3,169,705	869,716	895,806	1,818,203	2,154,395	292,652	231,913	2,234,678	2,281,755	378,155	417,868	488,653	774,574	8,410,065	9,926,016
Net insurance finance result	-1,533,437	-849,273	-326,774	-223,536	-533,568	-1,068,170	-146,215	-111,687	-1,603,238	-1,461,631	-205,538	-180,436	0	0	-4,348,770	-3,894,734
Expenses from financial liabilities	-32,156	-29,940	-45,936	-46,217	-7,663	-10,193	-2,469	-2,024	-1,021	-1,061	-74	-241	-1,381,341	-709,344	-1,470,659	-799,020
Net foreign exchange gains/losses	-82,883	54,341	9,264	-1,871	-65	-81	5,412	-1,261	-227,961	-247,389	33,716	166	0	0	-262,517	-196,095
Finance result	679,532	2,344,834	506,271	624,181	1,276,908	1,075,951	149,381	116,941	402,459	571,674	206,259	237,357	-892,688	65,230	2,328,120	5,036,167
	0	0	0	0	0	0	0	0	0	0					0	0
Non-insurance revenue	0	0	0	0	0	0	0	0	0	0	6,617,765	5,462,306	1,673,003	1,290,805	8,290,768	6,753,111
Non-insurance expenses	-508,761	-483,620	-476,192	-356,492	-186,405	-350,961	0	0	0	0	-4,254,107	-3,655,893	-1,805,496	-1,319,708	-7,230,960	-6,166,673
Other net income/expenses	1,167,719	1,984,913	658,092	550,929	118,105	163,111	8,148	-38,442	48,531	-74,749	5,235	15,990	32,817	-125	2,038,647	2,601,627
Profit or loss before tax	21,958,548	20,338,750	1,639,033	1,597,974	5,093,221	4,595,222	316,141	314,433	8,659,649	9,002,514	2,668,748	2,142,851	-992,365	36,202	39,342,976	38,027,946
Income tax expense															-8,442,998	-8,224,265
Net profit for the period															30,899,978	29,803,681

Adjusted income statement

The income statement, which is used for the review of business operations in the business report, has been adjusted to present certain categories more clearly and to shorten the line items, as shown in the following table.

EUR	Income statement			Income statement (adjusted)
	1–3/2025	1–3/2024		1–3/2025	1–3/2024
Insurance revenue	208,101,442	186,139,920	Insurance revenue	208,101,442	186,139,920
Insurance service expenses			Insurance service expenses, including non
	-159,639,943	-137,584,595	attributable expenses	-166,517,656	-142,972,080
Insurance service result from insurance contracts issued	48,461,499	48,555,325	Result before reinsurance	41,583,786	43,167,840
Revenue from reinsurance contracts held	5,438,170	-1,685,378
Expenses from reinsurance contracts held	-13,105,555	-11,678,748
Net result from reinsurance contracts held	-7,667,385	-13,364,126	Reinsurance result	-7,667,385	-13,364,126
Insurance service result	40,794,114	35,191,199	Insurance result	33,916,401	29,803,714
Net investment result	-25,324,908	53,014,185	Investment result	8,410,065	9,926,016
Finance result from insurance contracts	28,184,564	-49,296,036
Finance result from reinsurance contracts	454,749	1,342,434
Net insurance finance income or expenses	28,639,313	-47,953,602	Net insurance finance result	-4,348,770	-3,894,734
			Expenses from financial liabilities	-1,470,659	-799,020
			Net foreign exchange gains/losses	-262,517	-196,095
Net insurance and finance result	3,314,404	5,060,583	Finance result	2,328,120	5,036,167
Asset management revenue	6,617,765	5,462,306	Non-insurance revenue	8,290,768	6,753,111
Non-attributable operating expenses	-7,669,949	-6,006,580	Non-insurance expenses	-7,230,960	-6,166,673
Net impairment losses and reversals of impairment losses on non
financial assets	-23,035	142,402
Finance costs	-1,470,659	-799,020
Share of profit or loss of investments accounted for using equity
method	488,653	774,574
Net income and expenses from subsidiaries and associates	0	0
Gains or losses on disposal of discontinued operations	11,614	0
Net other operating income and expenses	-2,719,931	-1,797,518	Other net income/expenses	2,038,647	2,601,627
Profit before tax	39,342,976	38,027,946	Profit before tax	39,342,976	38,027,946
Income tax expense	-8,442,998	-8,224,265	Income tax expense	-8,442,998	-8,224,265
Net profit for the period	30,899,978	29,803,681	Net profit for the period	30,899,978	29,803,681

The following reclassifications have been made:

• Exchange differences on investments, insurance contract liabilities and other items have been reclassified from the investment result, net insurance finance result and the result of the "other" segment to net foreign exchange gains.
• Investment income on life insurance policies where policyholders bear the investment risk has been reclassified from the investment result to the net insurance finance result.
• Asset management revenue and income from other Group companies included in net other operating income and expenses are reported together as noninsurance revenue.
• Non-attributable expenses of the Group's insurance companies are recognised in the item "insurance service expenses, including non-attributable expenses". This brings the Group's recognition of non-attributable expenses in line with other major insurance companies as from 2025. In substance, this change follows the approach used in the calculation of the combined ratio, which also includes non-attributable expenses since the adoption of IFRS 17.
• The operating expenses of non-insurance companies that are part of net other operating income and expenses, and non-attributable expenses are together reported as non-insurance expenses.
• The share of profit or loss of investments accounted for using the equity method and net income and expenses from subsidiaries and associates have been combined and presented under the line item investment result. As from 2025, the Group has thus aligned this presentation with the content of net investment income on the investment portfolio.
• Expenses from financial liabilities included in finance costs are included in the finance result.
• Gains or losses on disposal of discontinued operations are included in other net income.

EUR											Pensions and asset
	Non-life, EU		Non-life, non-EU		Life, EU		Life, non-EU			Reinsurance	management		Other		Total
	31 March	31 December	31 March	31 December	31 March	31 December	31 March	31 December	31 March	31 December	31 March	31 December	31 March	31 December	31 March	31 December
	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
ASSETS
Intangible assets and goodwill	13,028,609	13,351,199	9,715,915	9,670,001	4,098,256	4,210,978	211,801	209,139	6,767,181	6,482,386	27,493,510	27,731,796	3,857,054	3,907,428	65,172,326	65,562,925
Property, plant and equipment	36,809,213	36,735,677	11,020,497	11,094,370	4,810,435	4,850,185	1,038,769	1,058,168	2,485,977	2,550,365	964,403	877,089	1,625,455	1,564,707	58,754,749	58,730,561
Investment property	10,270,403	11,168,035	5,502,891	5,515,791	31,222	31,558	0	0	7,394,298	7,431,872	0	0	163,393	0	23,362,208	24,147,256
Right-of-use assets	4,416,253	4,554,639	3,720,636	3,638,723	996,747	1,031,429	198,094	213,523	488,907	204,768	9,416	1,151,582	724,974	0	10,555,027	10,794,664
Investments in associates and
joint ventures	0	0	0	0	0	0	0	0	0	0	0	0	26,104,348	25,615,695	26,104,348	25,615,695
Deferred tax assets	3,414,544	3,761,244	0	0	-2,784,390	-2,748,165	0	0	4,071,317	4,018,394	-566,414	-602,281	0	0	4,135,056	4,429,192
Financial investments	648,635,927	630,295,606	106,098,655		102,268,899 1,172,898,112 1,192,202,055		36,251,810	35,164,660	317,288,921	309,292,893	61,365,335	59,856,090	0		0 2,342,538,760 2,329,080,204
Investment contract assets	0	0	0	0	0	0	0	0	0	0	199,675,524	201,171,005	0	0	199,675,524	201,171,005
Insurance contract assets	3,140,637	3,235,064	8,333	7,603	1,530,488	2,109,892	454,872	406,701	5,526,854	5,083,103	0	0	0	0	10,661,183	10,842,363
Reinsurance contract assets	57,207,236	57,833,926	6,331,257	5,540,858	199,302	263,935	11,249	0	15,106,989	13,880,033	0	0	0	0	78,856,033	77,518,752
Current tax assets	213,828	136,843	202,008	186,523	1,704,429	1,171,826	1,683	1,683	1,012,429	671,315	0	0	0	0	3,134,377	2,168,191
Trade and other receivables	4,573,383	3,645,458	6,744,247	6,541,448	1,244,409	831,491	659,525	622,469	246,993	245,648	1,746,392	1,720,463	1,902,158	3,107,828	17,117,106	16,714,805
Non-current assets held for sale	400,000	400,000	25,395	68,892	0	757,000	0	0	0	0	0	0	0	0	425,395	1,225,892
Cash and cash equivalents	21,914,567	18,211,265	4,651,238	5,756,901	12,323,759	11,553,212	1,046,497	1,138,412	9,292,232	10,302,262	3,949,766	2,107,796	2,878,408	3,279,918	56,056,467	52,349,765
Other assets	4,109,402	1,439,578	568,601	647,296	402,860	447,201	40,173	42,470	2,241,704	994,736	1,082,873	974,886	1,658,242	511,177	10,103,856	5,057,343
Total assets	808,134,004	784,768,533	154,589,671		150,937,304 1,197,455,629 1,216,712,596		39,914,473	38,857,225	371,923,802	361,157,776	295,720,806	294,988,426	38,914,031		37,986,752 2,906,652,417 2,885,408,613
LIABILITIES
Subordinated liabilities	0	0	0	0	0	0	0	0	0	0	0	0	126,426,766	125,058,474	126,426,766	125,058,474
Deferred tax liabilities	4,463	-6,526	642,726	651,432	212,400	194,871	773,971	678,346	0	0	1,710,824	1,725,931	192,281	201,365	3,536,666	3,445,418
Insurance contract liabilities	490,856,249	487,071,711	77,558,184		75,723,627 1,022,535,278 1,049,626,652		21,043,146	21,092,392	164,730,733	170,061,985	29,102,387	27,791,602	0		0 1,805,825,977 1,831,367,970
Reinsurance contract liabilities	2,128,281	-1,407,458	1,944,434	1,491,924	339,599	-29,544	0	22,557	1,653,122	3,905,726	0	0	0	0	6,065,436	3,983,205
Investment contract liabilities	0	0	0	0	0	0	0	0	0	0	199,487,101	200,954,895	0	0	199,487,101	200,954,895
Provisions	6,115,860	5,899,082	381,072	378,983	1,256,366	1,214,865	25,692	25,736	535,554	474,263	517,533	508,557	80,930	80,930	8,913,007	8,582,417
Lease liability	4,591,360	4,722,144	3,862,524	3,774,424	1,016,477	1,048,557	202,921	218,191	492,845	208,372	9,589	1,165,014	728,754	0	10,904,469	11,136,702
Other financial liabilities	7,159	7,157	486,145	422,556	0	0	547	1,941	-1	1	99,743	1	0	0	593,594	431,656
Current tax liabilities	3,602,118	0	401,571	679,602	0	0	88,913	63,866	838,114	0	401,374	593,705	134,673	134,151	5,466,763	1,471,324
Other liabilities	23,857,370	24,256,743	6,973,297	7,612,310	3,853,646	3,517,485	1,380,656	1,247,144	13,869,232	6,027,362	2,639,255	2,421,749	5,604,481	5,333,303	58,177,939	50,416,096
Total liabilities	531,162,859	520,542,853	92,249,953		90,734,860 1,029,213,766 1,055,572,885		23,515,846	23,350,174	182,119,601	180,677,711	233,967,806	235,161,453	133,167,885		130,808,222 2,225,397,717 2,236,848,157
Total equity															681,254,700	648,560,456
Total liabilities and equity															2,906,652,417 2,885,408,613

2. Consolidated statement of financial position by operating segment

3. Non-life segment

	Gross premiums written – non-life insurance
--	---------------------------------------------	--

EUR	1–3/2025	1–3/2024	Change	Index
Slovenia	168,359,044	159,392,699	8,966,345	105.6
Croatia	5,531,511	5,176,471	355,040	106.9
EU	173,890,555	164,569,170	9,321,385	105.7
Serbia	12,313,103	9,902,262	2,410,842	124.3
North Macedonia	5,861,823	5,348,051	513,772	109.6
Montenegro	6,295,559	5,675,639	619,920	110.9
Kosovo	5,165,006	4,657,223	507,783	110.9
Non-EU	29,635,491	25,583,175	4,052,316	115.8
Total non-life	203,526,046	190,152,345	13,373,701	107.0

Gross non-life insurance premiums by class of business

4. Life segment

Gross premiums written – life insurance

EUR	1–3/2025	1–3/2024	Change	Index
Slovenia	54,645,586	50,781,356	3,864,230	107.6
Croatia	551,166	564,477	-13,311	97.6
EU	55,196,752	51,345,832	3,850,919	107.5
Serbia	2,448,085	2,064,386	383,699	118.6
Kosovo	1,255,456	1,233,082	22,375	101.8
Non-EU	3,703,541	3,297,467	406,074	112.3
Total life	58,900,293	54,643,300	4,256,993	107.8

Gross life insurance premiums by class of business

5. Pensions and asset management segment

Performance of funds under management (accumulation part)

EUR	1–3/2025	1–3/2024	Index
Opening balance of fund assets (1 January)	2,125,101,190	1,716,417,279	123.8
Fund inflows	74,043,585	62,852,634	117.8
Fund outflows	-21,261,685	-14,221,301	149.5
Asset transfers	-1,259,049	-4,054,890	31.1
Net investment income on funds	-68,497,966	89,547,007	–
Entry and exit charges	-545,032	-531,570	102.5
Exchange differences and fair value reserve	-27,660	-938,340	2.9
Closing balance of fund assets (31 March)	2,107,553,383	1,849,070,819	114.0
Index versus period start	99.2	107.7	–

Closing balance of funds under management (accumulation part)

EUR		31 March 2025	31 December 2024	Index
Slovenia		908,473,226	942,984,814	96.3
North Macedonia		1,199,080,157	1,182,116,375	101.4
Total		2,107,553,383	2,125,101,190	99.2

6. Investment portfolio of the Sava Insurance Group

EUR	31 March 2025	Share 31 March 2025	31 December 2024	Share 31 December 2024	Change
Fixed-rate investments	1,473,901,584	86.9%	1,453,477,573	87.2%	20,424,011
Government bonds	933,444,668	55.0%	922,745,930	55.4%	10,698,738
Corporate bonds	511,742,863	30.2%	503,431,690	30.2%	8,311,174
Deposits	28,714,052	1.7%	27,299,953	1.6%	1,414,099
Shares and mutual funds	49,657,068	2.9%	44,408,674	2.7%	5,248,394
Shares	26,099,178	1.5%	23,464,857	1.4%	2,634,321
Mutual funds	23,557,890	1.4%	20,943,817	1.3%	2,614,073
Alternative funds	72,423,384	4.3%	72,361,306	4.3%	62,078
Investment property	23,362,208	1.4%	24,147,256	1.4%	-785,048
Cash and cash equivalents	50,181,002	3.0%	46,243,890	2.8%	3,937,112
Investments in associates	26,104,348	1.5%	25,615,695	1.5%	488,653
Other*	600,409	0.0%	667,771	0.0%	-67,362
Total investment portfolio	1,696,230,003	100.0%	1,666,922,164	100.0%	29,307,839

Balance and composition of the investment portfolio

* The "other" item includes loans granted.

Balance and composition of fixed-rate financial investments

EUR	31 March 2025	Share 31 March 2025	31 December 2024	Share 31 December 2024	Change
Government bonds	933,444,668	63.3%	922,745,930	63.5%	-0.2
Corporate and financial bonds	511,742,863	34.7%	503,431,690	34.6%	0.1
Regular corporate bonds	437,134,845	29.7%	427,219,544	29.4%	0.3
Subordinated bonds	17,980,466	1.2%	18,994,378	1.3%	-0.1
Covered bonds	56,627,552	3.8%	57,217,768	3.9%	-0.1
Deposits	28,714,052	1.9%	27,299,953	1.9%	0.1
Total	1,473,901,583	100.0%	1,453,477,573	100.0%	0.0

7. Glossary of selected terms and calculation methods for indicators

Adriatic region. The countries of south-eastern Europe along the Adriatic Sea.

Assets under management. Assets of the pension companies' pension funds, the assets of mutual funds managed by the Group's asset management company and the assets of the policyholders who bear the investment risk.

Book value per share. Ratio of total equity to the weighted average number of shares outstanding.

Business volume. Gross premiums written and non-insurance revenue.

Combined ratio. The sum of the loss ratio and the expense ratio. The Group's ratio is calculated for the reinsurance and non-life insurance operating segments.

Contractual Service Margin (CSM). An estimate of the unearned profit on groups of insurance contracts that has not been recognised in the income statement at a reporting date because it relates to future services.

Cost-to-Income Ratio (CIR). Administrative expenses as a percentage of net operating revenue and net other income/expenses.

Dividend yield. Ratio of the dividend per share to the rolling 12-month average share price.

Emerging risks. New risks, or risks that have been identified previously but which arise in new or unknown circumstances and the impact of which is not fully understood.

Expense ratio. Attributable expenses plus non-attributable expenses plus net operating income or expenses plus net other income or expenses plus net impairment losses and reversals of impairment losses on non-financial assets as a percentage of insurance revenue. The Group's ratio is calculated for the reinsurance and non-life insurance operating segments.

Finance result. Net insurance and finance result, including finance costs and share of profit or loss of investments accounted for using equity method.

FVTPL (Fair Value Through Profit or Loss) investments. Financial investments measured at fair value through profit or loss.

Gross premiums written. The total premiums from all policies written or renewed during a given period, regardless of what portions have been earned.

Highly liquid assets. Highly liquid investments include L1A assets (ECB methodology), investments in US bonds, investments in sovereign and supranational issuers rated AA+ or better, and cash and cash equivalents.

IBOR (Interbank Offered Rate). An interbank reference interest rate is the average interest rate at which banks borrow money (e.g., LIBOR, EURIBOR).

Insurance result. Insurance service result, excluding non-attributable operating expenses of insurance companies.

Investment portfolio. It includes investment property; investments in associates and subsidiaries; financial investments other than unitlinked assets; and cash and cash equivalents other than those related to unit-linked life insurance contracts.

Net contractual service margin. Contractual service margin, net of reinsurance.

Net earnings or loss per share. Ratio of net profit or loss attributable to equity holders of the controlling company as a percentage of the weighted average number of shares outstanding. The Company and the Group have no potentially dilutive ordinary shares, therefore basic earnings per share equal diluted earnings per share.

Net investment income on investment portfolio. The net investment result plus the share of the profit or loss of subsidiaries and associates. It excludes the return on life insurance policies where policyholders bear the investment risk, the impact of foreign exchange differences and the cost of subordinated debt.

NSLT health insurance. Health insurance provided on a technical basis similar to that of non-life insurance.

Own risk and solvency assessment (ORSA). Own assessment of the risks associated with a company's or the Group's business and strategic plan and assessment of the adequacy of own funds to cover them.

Return on equity. Net profit for the period as a percentage of average equity during the period, excluding accumulated other comprehensive income. Annualised returns are shown in the interim reports.

Return on the investment portfolio. The ratio of net investment income on the investment portfolio to average invested assets. The investment portfolio position includes the following items of the statement of financial position: investment property, investments in associates and subsidiaries, financial investments other than unit-linked assets, and cash and cash equivalents other than those related to unit-linked life insurance contracts. The average balance is calculated on the basis of the investment portfolio over the last five quarters. SLT health insurance. Health insurance provided on a technical basis similar to that of life insurance.

Solvency ratio. The ratio of eligible own funds to the solvency capital requirement, expressed as a percentage. A solvency ratio greater than 100% indicates that the company has sufficient resources to meet the solvency capital requirement.

Total shareholder return. The ratio of the difference between the share price at the end and beginning of the period, plus the dividend, to the share price at the beginning of the period.

Ultimate loss. Total amount of loss after all claims have been paid. Prior to final settlement, the estimated ultimate loss includes reported claims and provisions for incurred but not reported (IBNR) claims.