Zavarovalnica Triglav

Quarterly Report • May 20, 2022

Unaudited Interim Report of the Triglav Group and Zavarovalnica Triglav d.d. for the period from 1 January 2022 to 31 March 2022

Net profit before tax in EUR million

2

Credit rating

"A"

of the Triglav Group with a stable medium-term outlook

Dear shareholders, business partner and colleagues,

The COVID-19 pandemic, which has affected the Triglav Group's operations for the past two years, is easing, but our business environment remains very challenging. This year, it has been also shaped by the broader consequences of the war in Ukraine and the restrictive measures imposed against Russia and Belarus by the European Union, with which we are fully and consistently complying. In this regard, Triglav Group's exposure to the situation is assessed as limited and low.

Despite this situation, we performed well in the first quarter of the year. We maintained our financial strength with capital adequacy in the target range and earned a consolidated profit of EUR 38.1 million before tax, which is 20% more than in the same period last year. Taking into account the business conditions anticipated until the end of

the year, it is estimated that the Group's annual profit will be within the planned range.

The amount of quarterly profit generated was affected by good underwriting results, the results of client asset management and negative returns on the investment portfolio. The latter are an expected consequence of the unfavourable situation on the financial markets and the impairment of Russian bonds in our portfolio, which we anticipated. As we have done thus far, we managed the investment portfolio relatively conservatively and did not significantly change its composition in the first quarter.

The Triglav Group's total revenue increased by 12% to EUR 442.9 million year-on-year, and the volume of gross written premium increased by 10% to EUR 407.1 million. Our prudent underwriting discipline resulted in premium growth in all three insurance segments and in all insurance markets. Growth in premium volume also had an effect on the increased volume of claims, while claims growth was also influenced by last year's restrictions due to the pandemic and higher prices of materials and services. There were almost no major CAT events in the first quarter of 2022. The combined ratio in non-life and health insurance was favourable, standing at 87.3%. As always, we were prudent in managing costs and conservative in managing insurance technical provisions. In the reporting period, additional insurance technical provisions were formed at a reduced level in the health insurance segment, whereas a part of them was released in the life and pension insurance segment.

The regular General Meeting of Shareholders of Zavarovalnica Triglav is coming up. The Management Board and the Supervisory Board propose the dividend of EUR 3.70 gross per share, which accounts for 74% of consolidated net profit. The proposed dividend amount also includes the additional amount provided by the level of the Group's available capital and arises from the uniqueness or exceptionality of some segments of the Group's operations in the past two years.

We began 2022 with a revised strategy that is focused on development and sustainability. We are satisfied with our performance in the first quarter. The credit goes to our team of over 5,000 Triglav employees, whom I thank for their dedicated and committed work.

Andrej Slapar

President of the Management Board of Zavarovalnica Triglav

Business Report

1.	Financial highlights in the first quarter of 20226
2.	Governance of Zavarovalnica Triglav	11
3.	The share and the shareholders of Zavarovalnica Triglav	13
4.	Operations in the period from 1 January to 31 March 2022	20
5.	Financial result and financial position	38
6.	Risk management	46
7.	Employees of the Triglav Group	47

5

1. Financial highlights in the first quarter of 2022

1.1 Financial highlights of the Triglav Group

			in EUR million
	Q1 2022	Q1 2021	Index 2022/2021
Total revenue	442.9	396.0	112
Gross written premium from insurance, coinsurance and reinsurance
contracts	407.1	371.7	110
Net premium income	283.5	264.7	107
Gross claims paid*	196.7	171.3	115
Net claims incurred	185.5	171.2	108
Gross operating expenses	83.8	75.8	111
Profit before tax	38.1	31.8	120
Net profit	33.2	26.5	125
Net profit attributable to the controlling company	33.3	26.6	125
	31 March 2022	31 December 2021	Index 2022/2021
Insurance technical provisions	3,219.5	3,198.7	101
Equity	899.4	933.0	96
Equity attributable to the controlling company	897.1	930.5	96
Number of employees	5,278	5,264	100

*Gross claims paid include gross claims paid from inward reinsurance

Key performance indicators of the Triglav Group

	Q1 2022	Q1 2021
ROE annualised	15.5%	12.8%
Loss ratio	61.0%	62.3%
Expense ratio	26.3%	25.6%
Combined ratio	87.3%	87.9%
Ratio of gross operating expenses to gross written premium		18.4%

1.2 Financial highlights of Zavarovalnica Triglav

			in EUR million
	Q1 2022	Q1 2021	Index 2022/2021
Total revenue	264.1	239.4	110
Gross written premium from insurance, coinsurance and reinsurance
contracts	244.9	226.1	108
Net premium income	150.6	141.3	107
Gross claims paid*	105.3	93.3	113
Net claims incurred	94.4	90.0	105
Gross operating expenses	48.4	44.7	108
Profit before tax	26.1	18.5	142
Net profit	22.5	15.1	149
	31 March 2022	31 December 2021	Index 2022/2021
Insurance technical provisions	2,292.0	2,280.5	101
Equity	649.5	675.2	96
Number of employees	2,220	2,246	99

*Gross claims paid include gross claims paid from inward reinsurance

Key performance indicators of Zavarovalnica Triglav

	Q1 2022	Q1 2021
ROE annualised	14.5%	9.8%
Loss ratio	51.2%	53.0%
Expense ratio	27.6%	29.6%
Combined ratio	78.8%	82.6%
Ratio of gross operating expenses to gross written premium		19.7%

1.3 Activities, markets and position of the Triglav Group

The Triglav Group is the leading insurance/financial group in Slovenia and the Adria region as well as one of the leading groups in South-East Europe. The Group operates in seven markets in six countries. Furthermore, it operates in the wider international environment through partnerships with foreign insurance brokerage and agency companies as well as reinsurers.

Strategic activities

Insurance is the most extensive strategic activity of the Triglav Group, which includes non-life, life, health and pension insurance as well as reinsurance.

The insurance business of the Group comprises:

• in Slovenia: Zavarovalnica Triglav d.d., Triglav, Zdravstvena zavarovalnica d.d., Pozavarovalnica Triglav Re d.d. and Triglav, pokojninska družba d.d.;
• abroad: eight insurance undertakings in Croatia, Serbia, Montenegro, Bosnia and Herzegovina and North Macedonia.

The asset management activity at the Triglav Group, which is performed by Zavarovalnica Triglav, the Group's life insurance and pension insurance companies, Triglav Skladi d.o.o., Triglav, Upravljanje nepremičnin d.o.o. and Trigal d.o.o., includes saving via the Group's insurance services and investing in the Group's mutual funds, pension funds and private equity funds.

	Insurance	Asset management	Other
Slovenia	◼ Zavarovalnica Triglav d.d. ◼ Pozavarovalnica Triglav Re d.d. ◼ Triglav, Zdravstvena zavarovalnica d.d. ◼ Triglav, pokojninska družba d.d.	◼ Triglav Skladi d.o.o. ◼ Triglav, Upravljanje nepremičnin d.o.o. ◼ Trigal d.o.o.	◼ Triglav INT d.d. ◼ Triglav Svetovanje d.o.o. ◼ Triglav Avtoservis d.o.o. ◼ Triglavko d.o.o. ◼ Diagnostični center Bled d.o.o. ◼ Alifenet d.o.o. ◼ Trigav zdravje asistenca d.o.o.
Croatia	◼ Triglav Osiguranje d.d., Zagreb		◼ Triglav Savjetovanje d.o.o.
Serbia	◼ Triglav Osiguranje a.d.o., Belgrade		◼ Triglav Savetovanje d.o.o.
Montenegro	◼ Lovćen Osiguranje a.d., Podgorica ◼ Lovćen životna osiguranja a.d., Podgorica		◼ Lovćen auto d.o.o.
Bosnia and	◼ Triglav Osiguranje d.d., Sarajevo	◼ Triglav Fondovi d.o.o., Sarajevo	◼ Triglav Savjetovanje d.o.o.
Herzegovina	◼ Triglav Osiguranje a.d., Banja Luka	◼ Društvo za upravljanje Evropskim dobrovoljnim penzijskim fondom a.d, Banja Luka	◼ Autocentar BH d.o.o.
North Macedonia	◼ Triglav Osiguruvanje a.d., Skopje ◼ Triglav Osiguruvanje Život a.d., Skopje	◼ Triglav penzisko društvo a.d., Skopje

The Triglav Group members directly involved in or supporting the Group's strategic business lines

1.4 Composition of the Triglav Group

As at 31 March 2022, the Triglav Group comprised 46 companies; in addition to the parent company, 29 subsidiaries, 6 associates and 10 joint ventures.

The Triglav Group as at 31 March 2022

Parent company:	▪ Zavarovalnica Triglav d.d.
Subsidiaries:	▪ Pozavarovalnica Triglav Re d.d., Ljubljana
	▪ Triglav, Zdravstvena zavarovalnica d.d., Koper
	▪ Triglav zdravje asistenca d.o.o., Ljubljana
	▪ Triglav, pokojninska družba d.d., Ljubljana
	▪ Triglav INT, holdinška družba d.d., Ljubljana
	▪ Triglav Osiguranje d.d., Zagreb
	▪ Triglav Osiguranje a.d.o., Belgrade
	▪ Triglav Savetovanje d.o.o., Belgrade
	▪ Lovćen Osiguranje a.d., Podgorica
	▪ Lovćen životna osiguranja a.d., Podgorica
	▪ Lovćen auto d.o.o., Podgorica
	▪ Triglav Osiguranje d.d., Sarajevo
	▪ Triglav Savjetovanje d.o.o., Sarajevo
	▪ Autocentar BH d.o.o., Sarajevo
	▪ Sarajevostan d.o.o., Sarajevo
	▪ Triglav upravljanje nekretninama d.o.o., Sarajevo
	▪ Triglav Osiguranje a.d., Banja Luka
	▪ Triglav Osiguruvanje a.d., Skopje
	▪ Triglav Osiguruvanje Život a.d., Skopje
	▪ Triglav Skladi d.o.o., Ljubljana
	▪ Triglav Fondovi d.o.o., Sarajevo

	▪ Triglav Svetovanje d.o.o., Domžale
	▪ Triglav Savjetovanje d.o.o., Zagreb
	▪ Triglav Avtoservis d.o.o., Ljubljana
	▪ Triglav, Upravljanje nepremičnin d.o.o., Ljubljana
	▪ Triglav, upravljanje nekretninama d.o.o., Zagreb
	▪ Triglav, upravljanje nekretninama d.o.o., Podgorica
	▪ Triglav penzisko društvo a.d., Skopje
	▪ Vse bo v redu, Zavod Zavarovalnice Triglav za družbeno odgovorne aktivnosti
Associates:	▪ Triglavko d.o.o., Ljubljana
	▪ TRIGAL d.o.o., Ljubljana
	▪ Nama d.d., Ljubljana
	▪ Nama IN, d.o.o., Ljubljana
	▪ Društvo za upravljanje Evropskim dobrovoljnim penzijskim fondom a.d., Banja Luka
	▪ Alifenet d.o.o., Ljubljana
Joint ventures:	▪ Diagnostični center Bled d.o.o., Bled
	▪ MTC Fontana d.o.o., Maribor
	▪ Medi Cons kardiologija d.o.o., Novo Mesto
	▪ Gastromedica d.o.o., Murska Sobota
	▪ Internistična GE ambulanta d.o.o., Nova Gorica
	▪ Cardial d.o.o., Ljubljana
	▪ DC Naložbe d.o.o., Ljubljana
	▪ Kirurški sanatorij Rožna dolina d.o.o., Ljubljana
	▪ Neuroedina d.o.o., Bled
	▪ MDT & T d.o.o., Maribor

Changes in the Triglav Group in the first quarter of 2022:

• With the in-cash contribution of EUR 7,500, Triglav, Zdravstvena zavarovalnica d.d., Koper established Triglav zdravje asistenca, družba za zdravstveno dejavnost d.o.o., Ljubljana, thereby becoming its 100% owner.
• Triglav Svetovanje d.o.o., Domžale sold a 51% participating interest in Triglav Savetovanje d.o.o., Belgrade to Triglav Osiguranje a.d.o, Belgrade. As a result, Triglav Osiguranje, Belgrade became a 100% owner of said company.
• In first quarter of 2022, Triglav INT d.d., Ljubljana acquired a 0.36% participating interest in Triglav Osiguruvanje a.d., Skopje from non-controlling interest holders, thereby becoming its 81.69% owner. The consideration totalled MAK 2.2 million or EUR 36 thousand.
• PROF IN d.o.o., a subsidiary of Triglav Skladi, changed its name to Triglav Fondovi, društvo za upravljanje investicijskim fondovima d.o.o., Sarajevo or abbreviated Triglav Fondovi d.o.o., Sarajevo.

The changes in the Triglav Group are discussed in greater detail in Section 2.7 of the Accounting Report.

1.6 Significant events in the reporting period

Significant events in the first quarter of 2022 included:

• On 11 March 2022, the Triglav Group published detailed information on its low exposure to the situation resulting from the war in Ukraine and sanctions imposed against Russia and Belarus in an announcement (https://www.triglav.eu/en/investors/actual/announcements) and in the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2021 (https://www.triglav.eu/en/investors/actual/financial-reports). In its insurance and asset management activities, the Triglav Group fully and consistently abides by the restrictive measures imposed by the European Union against Russia and Belarus. It refrains from entering into new business partnerships and contracts in the two regions and from renewing existing ones.
• On 30 March 2022, the Company published the Management Board and Supervisory Board's proposal to this year's General Meeting of Shareholders to distribute a part of accumulated profit as at 31 December 2021 for dividend payment, i.e. EUR 3.70 gross per share in the total amount of EUR 84.1 million. See Section 3.5 Dividend policy for further information.

2. Governance of Zavarovalnica Triglav

Zavarovalnica Triglav uses a two-tier governance system. Its management and supervisory bodies are as follows: General Meeting of Shareholders, Management Board and Supervisory Board. They operate in compliance with the primary and secondary legislation, the Articles of Association and the relevant rules of procedure. Zavarovalnica Triglav's Articles of Association are published on its official website (www.triglav.eu).

The operation of the General Meeting of Shareholders, the Management Board and the Supervisory Board is described in greater detail in Section 5. Corporate Governance Statement of the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2021.

1.1 Composition of the Management Board

As at 31 March 2022 the Management Board of Zavarovalnica Triglav was comprised of:

• Andrej Slapar, President,
• Uroš Ivanc, Member,
• Tadej Čoroli, Member,
• Barbara Smolnikar, Member,
• David Benedek, Member, and
• Marica Makoter, Member.

1.2 Composition of the Supervisory Board

As at 31 March 2022, the Supervisory Board of Zavarovalnica Triglav was comprised of:

• shareholder representatives:
  • Andrej Andoljšek, Chairman,
  • Branko Bračko, Vice Chairman,
  • Tomaž Benčina, Member
• Peter Kavčič, Member,
• Igor Stebernak, Member, and
• Jure Valjavec, Member,
• employee representatives:
  • Peter Celar, Member,
  • Branko Gorjan, Member,
  • Igor Zupan, Member.

3. The share and the shareholders of Zavarovalnica Triglav

3.1 The share of Zavarovalnica Triglav

The market price of Zavarovalnica Triglav's share (ZVTG) grew by 10% in the first quarter, while its price-to-book value was 0.98 at the end of March. With EUR 918.5 million in market capitalisation, Zavarovalnica Triglav is the fourth largest Slovenian listed company.

The ZVTG share turnover on the Ljubljana Stock Exchange doubled in the first quarter compared to the same period last year and reached EUR 8.4 million. A total of 38% of its stock market turnover was performed by the liquidity provider, which has rendered its services for the Company since 2019. The ZVTG share was the fourth most liquid share on the Ljubljana Stock Exchange.

The movement of the ZVTG share price in the second half of February was influenced by the state on the stock markets due to the geopolitical situation, and in March it was influenced by the announcement of very good annual results of the Triglav Group and information on the dividend proposal. As seen in the figure, ZVTG share recorded a 10% growth in the reporting period, outperforming the STOXX Europe 600 Insurance sectoral index of 35 shares of European insurance companies by 9 percentage points. In the same period, the Ljubljana Stock Exchange SBITOP index, in which the ZVTG share holds a 10.7% share, fell by 4%.

Movement in the ZVTG share price in Q1 2022 compared to the Ljubljana Stock Exchange SBITOP index and the sectoral index of European insurance companies STOXX Europe 600 Insurance: 31 December 2021 = 100)

Movements in the ZVTG share price (left axis) and turnover (right axis) in EUR

Key figures for Zavarovalnica Triglav s share in Q1 2022 (in EUR)

Items	31 March 2022
Maximum closing price	40.40
Minimum closing price	33.90
Closing price	40.40
Book value per share (parent company)*	28.57
Book value per share (consolidated data)*	39.46
Net earnings per share (consolidated data)**	1.46
Market capitalisation	918,499,979
Average daily trading volume (excluding block trades)	134,071
Number of shares	22,735,148
The percentage of floating stock***	30.73%
Traded on	Ljubljana Stock Exchange - LJSE
ISIN code	SI0021111651
Ticker symbol	ZVTG
Bloomberg	ZVTG SV
Reuters	ZVTG.LJ
Credit rating (S&P Global Ratings, AM Best)	»A«, stable mediumßterm outlook

*In calculating the book value per share (parent company), the equity of Zavarovalnica Triglav and the number of shares as at the reporting date were taken into account, whilst in calculating the book value per share (consolidated data), the equity attributable to the controlling company and the number of shares as at the reporting date were taken into account.

**In calculating net earnings/loss per share (consolidated data), net profit or loss of the Triglav Group and the weighted average number of shares were taken into account.

***The shares held by shareholders with a 5% or higher stake are deducted from the total number of shares.

Zavarovalnica Triglav is proactive in its investor relations. It operates transparently and publicly discloses all key information on its performance, position and prospects in Slovenian and English, which is available on its website www.triglav.eu. The Company also keeps open lines of communications with its shareholders, investors and analysts and pays special attention to shareholders – natural persons by being available to them via the call centre, direct lines and email.

In the reporting period, the Company communicated with institutional shareholders predominantly via videoconferencing meetings, conference calls and by email. A special meeting was held to present the Triglav Group's strategy for 2022–2025, and a regular meeting after the publication of annual results. In addition, the Company participated in the regular virtual investor conference held by the Ljubljana Stock Exchange. The calendar of the Company's events, together with the presentations, is published on its website.

3.2 Equity

Zavarovalnica Triglav's share capital remained unchanged and amounted to EUR 73,701,391.79 as at 31 March 2022. It was divided into 22,735,148 ordinary registered no-par value shares of the same class. All shares are issued in a dematerialised form and are freely transferable. Each share represents the same stake and corresponding amount in share capital, and all have been fully paid up. Each share gives its holder the right to one vote at the General Meeting of Shareholders and a proportionate share of profit allocated for dividend payment. In addition, in the event of bankruptcy or liquidation the shareholders are entitled to a proportionate share of residual bankruptcy or liquidation estate after the payoff of preference shareholders

3.3 Shareholder structure

There were no significant changes in Zavarovalnica Triglav's shareholder structure in the first quarter of 2022. The ten largest shareholders and their 77% ownership stake remained unchanged.

The shareholder structure of Zavarovalnica Triglav as at 31 March 2022

According to the share register data, Zavarovalnica Triglav had 8,180 shareholders as at 31 March 2022, among them around 40 international banks with fiduciary accounts held by their clients and institutional investors. In recent years, international shareholders have maintained a stable ownership stake between 16% and 17%, while Slovenian citizens have gradually increased their to 12%.

Top ten shareholders of Zavarovalnica Triglav as at 31 March 2022 (share in %)

The Company's share of the free float, i.e. the shares held by the shareholders with less than a 5% ownership stake, stood at 30.7%. The share is stable and the ownership of these shares is globally dispersed among shareholders from 30 countries.

The members of Zavarovalnica Triglav's Management Board and Supervisory Board held a total of 5,709 ZVTG shares as at 31 March 2022 (1,220 more shares than at the 2021 year-end), or 0.03% of the Company's total shares.

3.4 Credit rating

The credit ratings of the Triglav Group – and thus its parent company Zavarovalnica Triglav and its subsidiary Pozavarovalnica Triglav Re – are assigned by two renowned credit rating agencies: S&P Global Ratings (hereinafter: S&P) and AM Best. The Triglav Group was assigned an "A" stand-alone credit rating with a stable medium-term outlook by both. The latest credit rating report, i.e. the announcement of the credit rating agency from 2021, is available on the website www.triglav.eu under the Investor Relations tab.

3.5 Dividend policy

The implementation of Zavarovalnica Triglav's dividend policy is subordinated to achieving the medium-term sustainable target capital adequacy of the Triglav Group, as shown in the figure below.

Zavarovalnica Triglav's dividend policy, which was revised in March 2018, sets out as follows: "The Company pursues an attractive and sustainable dividend policy. The part of consolidated net profit of the preceding year which is to be allocated to dividend payment accounts for at least 50%. The Company will strive to pay out a dividend no lower than the dividend paid out in the preceding year. As thus far, the future implementation of the dividend policy will be subordinated to achieving the medium-term sustainable target capital adequacy of the Triglav Group. The proposal of the Management Board and the Supervisory Board as regards the annual distribution of accumulated profit of the Company will therefore take into account the following three objectives in a balanced manner: to ensure prudent capital management of the Triglav Group and its financial stability, to reinvest net profit in the implementation of the strategy of growth and development of the Triglav Group and to pay out attractive dividends to its shareholders."

The Company considers its dividend policy to be a firm commitment to its shareholders and implements it as it is defined. In the last two years, it was impacted by the COVID-19 pandemic and related positions of the Slovenian insurance sector regulator, which the Management Board and the Supervisory Board took into account in their proposal for the distribution of the Company's accumulated profit. The General Meeting of Shareholders supported their proposals in both years.

For 2021, the Management Board and the Supervisory Board will propose to the General Meeting of Shareholders to pay the dividend of EUR 3.70, or EUR 84.1 million in total. The proposed amount exceeds 50% of the consolidated net profit of the previous year (reaching 74% of net profit), which is set as a starting point in the Company's dividend policy. A part of the proposed dividend therefore represents an additional amount provided by the level of the Group's available capital and arises from the uniqueness or exceptionality of some segments of the Group's operations in the past two years.

Zavarovalnica Triglav's dividend policy is designed in a way that is attractive to shareholders and sustainable for the development and growth of the Group. Accordingly, the starting point for the dividend proposal of 50% of the consolidated net profit of the previous year is retained also for 2023.

3.6 Bonds

Zavarovalnica Triglav has one issued subordinate bond, which is included in its capital adequacy. The bond was issued in 2019 as part of the Group's regular capital management to ensure its optimal composition and cost efficiency and to replace the bond that matured on 21 March 2020. See the table below for more information.

Bond of Zavarovalnica Triglav

ISIN	XS1980276858
Type	Subordinated bond (Tier 2 pursuant to the Solvency II regulations)
Issue size in EUR	50,000,000
Currency	EUR
	Fixed at 4.375% annually until first call date, payable annually
	Thereafter variable at 3-month Euribor + 4.845% (equal to the original initial credit spread
Coupon rate and payment	+ 1 percentage point), payable quarterly
First call date	22 October 2029
Maturity date	22 October 2049
Maturity in years	30.5
Regulated market	Luxembourg Stock Exchange
Issue Rating	BBB+ (S&P)

4. Operations in the period from 1 January to 31 March 2022

4.1 The macroeconomic environment and environmental impact on the Triglav Group s operations

The global economy in the first quarter of 2022 was marked by the war in Ukraine, sanctions imposed against Russia and Belarus and a sharp rise in energy prices and inflation. At the beginning of the year, economic activity indicators in the euro area showed a favourable but subdued growth rate. As the COVID-19 epidemic subsided, conditions for service activities began to improve; however, faster economic growth was hampered by stagnant industrial production due to supply chain disruptions. The labour market situation remained favourable, with the unemployment rate reaching an all-time low. With the start of the war in Ukraine, the sentiment among consumers noticeably declined, and sentiment indicators among businesses began to point to the first signs of a deteriorating economic environment. The prices of energy products and some raw materials jumped sharply. The euro area recorded year-on-year inflation of 7.5% in March, the highest level since Eurostat began compiling this data. Due to government measures, Slovenia recorded a slightly lower inflation rate of 6.0% in March, which is still the highest in more than 18 years.

In the new situation, financial institutions began to amend their economic forecasts at the end of the quarter. The ECB was one of the first to do so, lowering this year's forecast for economic growth in the euro area by half a percentage point to 3.7% and raising the region's annual inflation by 1.9 percentage points to 5.1%. Similar modifications can be expected in the forecasts for the Slovenian economy. Just before the outbreak of the war in Ukraine, the European Commission forecast a 3.8% growth and 3.7% inflation rate of the Slovenian economy for 2022.

Financial markets also ended the first quarter marked by the Russian invasion and its aftermath. Due to rising inflation and expectations, both US and European central banks committed themselves to removing the stimulus of their monetary policies more quickly. The US Federal Reserve (FED) changed its key interest rate by 0.25 percentage point in March for the first time in two years, announcing that it could launch a quantitative tightening policy in May, accelerating interest rate increases. The European Central Bank (ECB) fulfilled its forecast and ended its pandemic emergency purchase programme (PEPP) at the end of the quarter, with the end of its regular asset purchase programme (APP) planned for the second or third quarter of this year. This increased the likelihood that it would start raising its key interest rate in the second half of the year.

Bond markets recorded a more pronounced rise in required returns. Credit spreads on both government and corporate bonds rose. The sharp fall in the price of Russia's bonds and the bonds of its companies operating in the international environment signalled their imminent bankruptcy. Compared to the beginning of the year, the required yield on the 10-year German government bond rose by 0.73 percentage point to 0.55% and the yield on the 10-year Slovenian government bond increased by 0.94 percentage point to 1.35%. Bonds in countries with low credit ratings, including Italian and Greek bonds, recorded a more noticeable rise in yield. The uncertain business environment and poor economic outlook also affected the stock markets. The US S&P index and China's Hang Seng index lost 4.9% and 6.0% of their value in the first quarter, respectively. The German DAX index fell by a total of 9.3%. In the same period, the Slovenian SBITOP index lost 4.2% of its value.

The situation on the financial markets resulted in negative returns on investments and lower assets in asset management. The rising inflation rate also affects the growth of prices of materials and services, and therefore higher payments of gross claims paid and higher gross operating expenses.

There were almost no major CAT events in the first quarter of 2022. The business result of the Triglav Group was affected by only three storms, which between 16 and 21 February hit the countries of Central and Eastern Europe and resulted in damages of a total estimated value of EUR 750 thousand.

4.2 The insurance market and the position of the Group members in the first nine months of 2022

A total of 13 insurance companies, four foreign branches and two reinsurance companies are active in the Slovenian insurance market, all members of the Slovenian Insurance Association (hereinafter: the SZZ). In October 2021, Prva osebna zavarovalnica transferred part of its activities (supplemental pension insurance and pension annuities) to Prva pokojninska družba d.d.

In the first quarter of 2022, insurance companies collected EUR 772.7 million in gross written insurance, coinsurance and reinsurance premiums (the calculation does not take into account internal transfers of assets for the payment of pension annuities), up by 5.5% relative to the same period last year. Non-life insurance premium achieved a 6.5% growth and a 76.0% share. Other damage to property insurance, which grew by 24.0%, contributed the most to the increase in non-life insurance premium. Life insurance premium increased by 2.5%, with unit-linked life insurance recording growth (index 111) and life insurance and capital redemption insurance experiencing a decline. Health insurance premium, which is taken into account in non-life insurance premium, was 2.2% higher compared to the year before.

The Slovenian insurance market continues to be highly concentrated, with the four largest insurers holding a 77.2% market share. With a 31.7% market share (compared to 30.9% in the respective period of 2021), Zavarovalnica Triglav remained the market leader, followed by Zavarovalnica Sava (a 18.1% market share).

The Triglav Group's insurance companies held a 39.4% market share in the Slovenian insurance market at the end of the first quarter of 2022.

The Triglav Group (the parent company, Triglav, Zdravstvena zavarovalnica and Triglav, pokojninska družba) increased its market share by 0.6 percentage point to 39.4%. The Group recorded growth in all insurance segments.

The market shares of the Triglav Group by segment:

• non-life insurance (excluding health insurance): 46.7% (an increase of 0.3 percentage point);
• life insurance: 31.8% (an increase of 0.8 percentage point);
• health insurance: 30.1% (an increase of 0.1 percentage point).

The market shares of Zavarovalnica Triglav by segment:

• non-life insurance: 33.1% (an increase of 0.8 percentage point);
• life insurance: 27.1% (an increase of 0.6 percentage point).

The market share of Triglav, Zdravstvena zavarovalnica:

▪ health insurance: 29.9% (an increase of 0.1 percentage point).

The market share of Triglav, pokojninska družba:

▪ supplemental voluntary pension insurance (SVPI): 18.8% (calculation based on the assessment of the company's data for January–March 2022).

Market share of insurance companies in Slovenia in Q1 2022

Source: Slovenian Insurance Association

Market share and market position		of the Triglav Group insurance companies	in Q1 2022

Market	Market share	Market share trend		Ranked in 2022	Ranked in 2021
Slovenia	39,4 %		+ 0.6-percentage point	1	1
Croatia	6,3 %		- 0.3-percentage point	7	7
Serbia*	7,3 %		+ 0.4-percentage point	5	5
Montenegro	41,4 %		- 1.3-percentage point	1	1
Bosnia and Herzegovina	9,7 %		+ 0.3-percentage point	2	2
- Federation of BiH	10,8 %		+ 0.4-percentage point	2	3
- Republic of Srpska***	7,1 %		+ 0.1-percentage point	5	6
North Macedonia**	13,2 %		+ 0.3-percentage point	1	1

* Data for January–September 2021.

** Data for January–December 2021.

*** The market shares of Triglav Osiguranje, Banja Luka and the branch of Triglav Osiguranje, Sarajevo in Banja Luka are included.

4.3 Gross written insurance, coinsurance and reinsurance premiums

The Triglav Group posted a total of EUR 407.1 million in consolidated gross written insurance, coinsurance and reinsurance premiums, up by 10% relative to the corresponding period last year. Total written premium increased in all insurance segments:

• non-life insurance: EUR 289.8 million (index 111),
• life and pension insurance: EUR 66.1 million (index 109),
• health insurance: EUR 51.2 million (index 103).

The Triglav Group recorded a 10% growth in gross written insurance, coinsurance and reinsurance premiums.

Consolidated gross written insurance, coinsurance and reinsurance premiums in Q1 2022 compared to Q1 2021

The proportion of non-life insurance premium in total consolidated gross written premium increased, the proportion of health insurance premium decreased, whereas the proportion of life and pension insurance premium remained at approximately the same level:

• non-life insurance: 71.2% (Q1 2021: 70.3%);
• life and pension insurance: 16.2% (Q1 2021: 16.3%); and
• health insurance: 12.6% (Q1 2021: 13.4%).

The structure of consolidated gross written insurance, coinsurance and reinsurance premiums of the Triglav Group by segment in Q1 2022

The Group continues to increase the share of insurance premium written in markets outside Slovenia, which grew by 0.5 percentage point compared to the same period last year. A total of 67.0% of consolidated gross written premium was earned in the Slovenian insurance market, while 19.6% of the premium was charged in other markets in the Adria region outside Slovenia. International insurance and reinsurance premium accounted for 13.4%.

	Gross written premium		Index	Share
			Q1 2022/
Country	Q1 2022	Q1 2021	Q1 2021	Q1 2022	Q1 2021
Slovenia	272,606,743	258,801,562	105	67.0%	69.6%
Croatia	29,573,408	28,375,235	104	7.3%	7.6%
Serbia	21,624,327	18,227,362	119	5.3%	4.9%
Montenegro	11,129,408	10,057,344	111	2.7%	2.7%
Bosnia and Herzegovina	10,686,874	9,262,346	115	2.6%	2.5%
North Macedonia	6,802,889	4,978,012	137	1.7%	1.3%
International insurance and reinsurance	54,645,593	41,990,047	130	13.4%	11.3%
Total	407,069,242	371,691,908	110	100.0%	100.0%

Consolidated gross written insurance, coinsurance and reinsurance premiums of the Triglav Group by market

Premium growth was recorded in all insurance markets. In the Slovenian insurance market, premium grew by 5%, in other markets in the Adria region outside Slovenia by 13% and in the international market by 30%.

Non-consolidated gross written premium of retail clients increased by 7% over the same period last year, accounting for 57.1% of total written premium (0.5 percentage point less than last year). The rest, 42.9%, was accounted for by corporate clients' written premium, which rose by 9%.

In terms of sales channels, the Group increased the share of non-consolidated gross written premium, which was collected via own sales channels (agents, sales clerks and brokers, own points of sale, online and other own sales channels). Non-consolidated gross written premium rose by 9% over the same period last year, accounting for 65.9% of total written premium (0.4 percentage point more than last year). The rest (34.1%) was collected via external sales channels (insurance agency and brokerage companies, banks, post offices and roadworthiness test providers), recording a 7% growth.

Non-consolidated gross written insurance, coinsurance and reinsurance premiums in Q1 2022 by sales channel of the Triglav Group (excluding Pozavarovalnica Triglav Re)

The Triglav Group insurance companies (excluding Pozavarovalnica Triglav Re) booked EUR 385.1 million in non-consolidated gross written premium, up by 8% relative to the same period last year.

Pozavarovalnica Triglav Re posted a total of EUR 88.0 million in gross written reinsurance premium, an increase of 22% relative to 2021. In transactions outside and within the Group, Pozavarovalnica Triglav Re recorded a 26% (EUR 33.5 million) and 20% premium growth (EUR 54.4 million), respectively. Premium growth in transactions outside the Group resulted from organic growth of renewed transactions from the preceding year and the increase in shares in some contracts. The highest premium growth was recorded in the markets of Israel, the Czech Republic, Germany and the Republic of South Africa.

	Gross written premium Index				Share
Insurance company		Life and			Life and
	Non-life	pension	Total	Non-life	pension	Total	Q1 2022
Zavarovalnica Triglav*	194,689,803	50,621,515	245,311,318	109	106	108	63.7%
Triglav, Zdravstvena zavarovalnica	51,276,930	-8	51,276,922	103	0	103	13.3%
Triglav, pokojninska družba	0	8,664,629	8,664,629	0	106	106	2.3%
Triglav Osiguranje, Zagreb	27,591,426	1,981,982	29,573,408	105	96	104	7.7%
Triglav Osiguranje, Belgrade	20,042,054	1,582,273	21,624,327	122	91	119	5.6%
Lovćen Osiguranje, Podgorica	9,927,047	0	9,927,047	111	0	111	2.6%
Triglav Osiguranje, Sarajevo	5,197,460	3,904,514	9,101,974	109	128	116	2.4%
Triglav Osiguranje, Banja Luka	1,584,900	0	1,584,900	109	0	109	0.4%
Triglav Osiguruvanje, Skopje	5,441,986	0	5,441,986	123	0	123	1.4%
Lovćen životna osiguranja, Podgorica	0	1,202,361	1,202,361	0	106	106	0.3%
Triglav Osiguruvanje Život, Skopje	0	1,360,903	1,360,903	0	246	246	0.4%
Total	315,751,606	69,318,169	385,069,775	109	107	108	100.0%
Pozavarovalnica Triglav Re	87,966,627	0	87,966,627	122	0	122
Consolidation eliminations	-62,790,714	-3,176,446	-65,967,160	121	85	118
Total consolidated	340,927,519	66,141,723	407,069,242	110	109	110

Gross written insurance, coinsurance and reinsurance premiums in Q1 2022 by Triglav Group insurance company

*The insurance company data already include the pre-consolidation adjustments

In the non-life insurance group, the Triglav Group's insurance companies charged EUR 315.8 million in non-consolidated written premium, up by 9% relative to the same period last year. Growth was achieved in all non-life insurance groups. Credit insurance, other non-life insurance and real property insurance achieved the highest growth. High growth in credit insurance was recorded by most insurance companies selling these insurance products. The main reasons for such favourable trend at the parent company, which accounts for almost two thirds of total written premium, are mainly growth in consumer and housing credit insurance and growth in commodity credit insurance. Strong growth in real property insurance was generated by most insurance companies by attracting new policyholders and increasing the scope of insurance coverage with existing policyholders. With regard to other non-life insurance, all Group insurance companies recorded high premium growth, the highest among them by Triglav Osiguranje, Belgrade and Triglav Osiguranje, Zagreb.

The Group insurance companies collected a total of EUR 69.3 million in non-consolidated gross written premium from the life and pension insurance group, up by 7% relative to the corresponding period in 2021. Life and pension insurance represented 18.0% of total nonconsolidated gross written premium, down by 0.2 percentage point compared to the previous year. High, 30% growth was seen in capital redemption insurance (supplemental voluntary pension insurance) due to transfers of supplemental voluntary pension insurance assets from other insurance companies and higher regular premium payments at the parent company. Moreover, unit-linked life insurance also recorded a high growth of 16%, where premium growth was achieved by Zavarovalnica Triglav, Triglav, pokojninska družba and Triglav Osiguruvanje Život, Skopje.

	Gross written premium	Index	Share
Insurance class	Q1 2022	Q1 2021	Q1 2022/ Q1 2021	Q1 2022
Accident insurance	10,738,712	10,645,810	101	2.8%
Health insurance	54,964,454	53,289,899	103	14.3%
Comprehensive car insurance	48,725,498	48,189,606	101	12.7%
Real property insurance	95,845,401	83,023,440	115	24.9%
Motor liability insurance	53,326,148	50,849,923	105	13.8%
General liability insurance	22,747,381	21,077,920	108	5.9%
Credit insurance	8,547,098	5,862,960	146	2.2%
Other non-life insurance	20,856,913	17,725,686	118	5.4%
Non-life insurance	315,751,605	290,665,244	109	82.0%
Life insurance	28,347,891	29,739,661	95	7.4%
Unit-linked life insurance*	35,025,465	30,189,274	116	9.1%
Capital redemption insurance	5,944,814	4,577,095	130	1.5%
Life and pension insurance	69,318,170	64,506,030	107	18.0%
Total	385,069,775	355,171,274	108	100.0%

Non-consolidated gross written insurance, coinsurance and reinsurance premiums of the Triglav Group insurance companies (excluding Pozavarovalnica Triglav Re) by insurance class

*According to the definition of the Insurance Supervision Agency, premiums of Triglav, pokojninska družba are included in unit-linked life insurance.

Gross written insurance, coinsurance and reinsurance premiums of Zavarovalnica Triglav by insurance class

	Gross written premium	Index	Share
Insurance class	Q1 2022	Q1 2021	Q1 2022/ Q1 2021	Q1 2022
Accident insurance	6,857,208	6,999,104	98	2.8%
Health insurance	312,459	324,207	96	0.1%
Comprehensive car insurance	41,663,497	41,255,087	101	17.0%
Real property insurance	70,326,997	60,178,410	117	28.7%
Motor liability insurance	37,366,070	36,056,863	104	15.3%
General liability insurance	17,795,347	16,346,530	109	7.3%
Credit insurance	6,270,384	4,212,016	149	2.6%
Other non-life insurance	14,097,841	12,957,668	109	5.8%
Non-life insurance	194,689,803	178,329,885	109	79.5%
Life insurance	19,313,727	22,114,835	87	7.9%
Unit-linked life insurance	24,925,812	21,111,576	118	10.2%
Capital redemption insurance	5,944,814	4,577,095	130	2.4%
Life and pension insurance	50,184,353	47,803,506	105	20.5%
Total	244,874,156	226,133,391	108	100.0%

4.4 Gross claims paid

Consolidated gross claims paid of the Triglav Group, which comprise claim handling expenses, income from collected subrogation receivables and gross claims paid from inward reinsurance, totalled EUR 196.7 million, up by 15% due to the

Gross claims paid were 15% higher relative to the same period last year.

increased number of reported claims resulting from the larger size of the portfolio, the pandemic-related restrictions and the growth of prices of materials and services. They increased in all insurance segments. In the largest segment, i.e. non-life insurance, gross claims paid amounted to EUR 102.8 million, up by 20%. In the health insurance segment, they grew by 16% to EUR 40.8 million. In the life and pension insurance segment, growth was 6%, with claims paid amounting to EUR 53.1 million.

Consolidated gross claims paid in Q1 2022 compared to Q1 2021

Non-consolidated gross claims paid of the Group insurance companies (excluding Pozavarovalnica Triglav Re) were also higher, amounting to EUR 184.8 million, an increase of 14% compared to the corresponding period last year. Gross claims paid grew in all insurance companies.

Gross claims paid by Pozavarovalnica Triglav Re totalled EUR 14.7 million, up by 6% compared to the preceding year. A 25% growth in gross claims paid was seen in transactions outside the Group (EUR 14.6 million), whereas gross claims paid in transactions within the Group fell to EUR 86 thousand (compared to EUR 2.1 million in 2021). In transactions outside the Group, growth primarily resulted from higher claims in non-life insurance contracts with a higher premium volume, higher claims paid due to the COVID-19 pandemic and claims due to last year's July floods in Germany.

		Gross claims paid		Index			Share
		Life and			Life and
Insurance company	Non-life	pension	Total	Non-life	pension	Total	Q1 2022
Zavarovalnica Triglav*	62,088,103	43,185,728	105,273,831	119	106	113	57.0%
Triglav, Zdravstvena zavarovalnica	40,774,657		40,774,657	116	0	116	22.1%
Triglav, pokojninska družba		7,697,472	7,697,472	0	109	109	4.2%
Triglav Osiguranje, Zagreb	10,598,420	1,656,260	12,254,680	116	82	110	6.6%
Triglav Osiguranje, Belgrade	5,399,825	1,162,914	6,562,739	112	72	102	3.6%
Lovćen Osiguranje, Podgorica	4,030,947		4,030,947	113	0	113	2.2%
Triglav Osiguranje, Sarajevo	2,238,549	1,270,505	3,509,054	161	143	154	1.9%
Triglav Osiguranje, Banja Luka	1,169,990		1,169,990	289	0	289	0.6%
Triglav Osiguruvanje, Skopje	2,242,797		2,242,797	103	0	103	1.2%
Lovćen životna osiguranja, Podgorica		921,434	921,434	0	115	115	0.5%
Triglav Osiguruvanje Život, Skopje		372,969	372,969	0	168	168	0.2%
Total	128,543,288	56,267,282	184,810,570	118	105	114	100.0%
Pozavarovalnica Triglav Re	14,734,291		14,734,291	106	0	106
Consolidation eliminations	331,133	-3,176,004	-2,844,871	-19	90	54
Total - consolidated	143,608,712	53,091,278	196,699,990	118	106	115

Gross claims paid in Q1 2022 by Triglav Group insurance company

* The data already include the pre-consolidation adjustments.

Non-consolidated gross claims paid in the non-life insurance group amounted to EUR 128.5 million, an increase of 18% relative to the preceding year. The highest growth rates in gross claims paid were recorded by other non-life insurance (index 160) and real property insurance (index 127), comprehensive car insurance (index 119) and health insurance (index 116). Only credit insurance and accident insurance saw a decline in gross claims paid. The increase in gross claims paid of other non-life insurance and real property insurance was recorded by most insurance companies mainly due to the larger portfolio and the higher number of reported claims. With regard to motor vehicle insurance, the reason was the higher number of reported claims and the increase in the prices of materials and services. Higher payments of gross claims paid in health insurance were influenced by the larger volume of health services, which were not provided last year due to the pandemic.

Non-consolidated gross claims paid in the life and pension insurance group increased by 5% to EUR 56.3 million. Their share in total non-consolidated claims paid declined by 2.5 percentage points to 30.4%. Gross claims paid in capital redemption insurance (supplemental voluntary pension insurance) rose by 39%, predominantly as a result of higher payouts due to withdrawals from insurance contracts and transfers of assets to other pension insurance providers. Gross claims paid in unit-linked life insurance increased by 13% as a result of the high growth at the parent company (higher payouts due to advances and maturities), Triglav, pokojninska družba (the higher number of withdrawals from insurance contracts) and Triglav Osiguranje, Zagreb (higher payouts due to surrenders).

Non-consolidated gross claims paid of Triglav Group insurance companies (excluding Pozavarovalnica Triglav Re) by insurance class

		Gross claims paid	Index	Share
Insurance class	Q1 2022	Q1 2021	Q1 2022/ Q1 2021	Q1 2022
Accident insurance	5,051,035	5,540,678	91	2.7%
Health insurance	42,191,706	36,467,845	116	22.8%
Comprehensive car insurance	24,725,429	20,710,420	119	13.4%
Real property insurance	20,563,917	16,191,022	127	11.1%
Motor liability insurance	25,200,051	21,737,754	116	13.6%
General liability insurance	3,320,370	3,133,095	106	1.8%
Credit insurance	839,636	1,178,311	71	0.5%
Other non-life insurance	6,651,141	4,165,309	160	3.6%
Non-life insurance	128,543,285	109,124,434	118	69.6%
Life insurance	31,567,397	32,157,089	98	17.1%
Unit-linked life insurance*	22,406,069	19,743,163	113	12.1%
Capital redemption insurance	2,293,819	1,654,967	139	1.2%
Life and pension insurance	56,267,285	53,555,219	105	30.4%
Total	184,810,570	162,679,653	114	100.0%

* According to the definition of the Insurance Supervision Agency, gross claims paid by Triglav, pokojninska družba are included in unit-linked life insurance

Gross claims paid of Zavarovalnica Triglav by insurance class

	Gross claims paid		Index	Share
Insurance class	Q1 2022	Q1 2021	Q1 2022/ Q1 2021	Q1 2022
Accident insurance	2,730,958	2,976,811	92	2.6%
Health insurance	-51,441	-54,335	95	0.0%
Comprehensive car insurance	20,377,529	17,028,907	120	19.4%
Real property insurance	14,112,219	12,012,540	117	13.4%
Motor liability insurance	16,440,622	13,512,628	122	15.6%
General liability insurance	2,667,232	2,559,749	104	2.5%
Credit insurance	547,698	928,246	59	0.5%
Other non-life insurance	5,263,284	3,411,208	154	5.0%
Non-life insurance	62,088,101	52,375,754	119	59.0%
Life insurance	26,786,145	27,007,347	99	25.4%
Unit-linked life insurance	14,105,766	12,264,420	115	13.4%
Capital redemption insurance	2,293,819	1,654,967	139	2.2%
Life and pension insurance	43,185,730	40,926,734	106	41.0%
Total	105,273,831	93,302,488	113	100.0%

4.5 Gross operating expenses

Total consolidated gross operating expenses of the Triglav Group amounted to EUR 83.8 million, up by 11%. Expenses from insurance operations grew by 10% to EUR 75.5 million. The highest growth was recorded by

The share of operating expenses of insurance operations in gross written premium was 18.5%.

acquisition costs, costs of material and energy and depreciation costs. The share of operating expenses of insurance operations in gross written premium rose by 0.1 percentage point to 18.5%. Operating expenses increased in all insurance segments; by 16% in the health insurance segment (EUR 4.0 million), by 11% in the non-life insurance segment (EUR 60.0 million) and by 7% in the life and pension insurance segment (EUR 11.5 million).

Expenses from non-insurance operations grew by 13% to EUR 8.3 million. Their increase was mainly due to the increase in the costs of payment transactions and banking services at Triglav Skladi due to higher transaction fees, which are proportional to the volume of assets under management.

Acquisition costs (fees and commissions) rose by 29% to EUR 18.8 million, predominantly as a result of their increase at Zavarovalnica Triglav, Triglav Osiguranje, Zagreb, Triglav Osiguranje, Sarajevo and Triglav, Zdravstvena zavarovalnica. Increased acquisition costs mainly resulted from the higher number of concluded insurance policies and the increased volume of written premium from insurance policies taken out via external sales channels (contracted points of sale, brokers, agencies and banks). At the parent company, their increase was also influenced by the expansion of transactions concluded under the principle of free movement of services (FOS) in the EU.

The 19% increase in depreciation costs in the amount of EUR 6.3 million was primarily the consequence of higher depreciation costs of intangible fixed assets at the parent company and high investments in software last year.

At 44.6%, labour costs accounted for the largest portion of total expenses, amounting to EUR 39.4 million, up by 2% relative to the corresponding period last year. The highest growth was recorded by Triglav, Zdravstvena zavarovalnica, Lovćen životna osiguranja and Triglav Osiguruvanje Život, Skopje, mainly as a result of a higher number of employees and higher other labour costs. At the parent company, the 2% growth in labour costs was mainly due to higher other labour costs resulting from higher costs of commuting allowance (in the same period last year employees carried our more work from home due to the COVID-19 pandemic) and higher costs of voluntary pension insurance due to higher employer payments agreed in May 2021. Costs of services provided by natural persons other than sole proprietors (contract work and services of the student work service) declined by 10%. With only a 0.4% share in total expenses, they amounted to EUR 325 thousand.

Other operating expenses increased by 11% to EUR 23.5 million. Among them, the highest growth was recorded by costs of material and energy due to high growth of energy prices, costs of payment transactions and banking services (Triglav Skladi) and costs of intellectual and personal services (higher costs of advisory services at the parent company and Triglav Skladi).

Acquisition costs represented 62.2% (the largest share) of total gross operating expenses of insurance operations broken down by functional group. Other operating expenses represented 26.7%, claim handling expenses 9.6% and asset management costs 1.5% of total gross operating expenses of insurance operations.

	Gross operating expenses		Index	Share
Operating expenses by nature	Q1 2022	Q1 2021	Q1 2022/ Q1 2021	Q1 2022
Acquisition costs (fees and commissions)	18,848,347	14,639,659	129	21.3%
Costs of goods sold	2,601	88,898	3	0.0%
Depreciation of operating assets	6,260,061	5,279,745	119	7.1%
Labour costs	39,423,011	38,493,431	102	44.6%
- wages and salaries	28,534,820	28,203,155	101	32.3%
- social securities and pension insurance costs	6,303,566	6,206,705	102	7.1%
- other labour costs	4,584,625	4,083,571	112	5.2%
Costs of services provided by natural persons other than SPs together with
pertaining taxes	324,951	361,096	90	0.4%
Other operating expenses	23,492,926	21,192,283	111	26.6%
- costs of entertainment, advertising, trade shows	4,146,620	4,161,335	100	4.7%
- costs of material and energy	2,665,316	1,867,986	143	3.0%
- maintenance costs	3,817,232	3,572,256	107	4.3%
- travel expenses	966,675	789,419	122	1.1%
- costs of intellectual and personal services	1,609,104	1,372,345	117	1.8%
- non-income-related costs, excluding insurance	720,007	650,063	111	0.8%
- costs of transport and communication services	1,330,350	1,242,712	107	1.5%
- costs of insurance premiums	262,764	310,519	85	0.3%
- payment transaction costs and banking services	3,060,220	2,336,079	131	3.5%
- rents	1,621,442	1,567,559	103	1.8%
- costs of services of professional training	293,267	292,570	100	0.3%
- other costs of services	2,999,528	3,029,434	99	3.4%
- long-term employee benefits	401	6	6.683	0.0%
Total	88,351,897	80,055,112	110	100.0%
Consolidation eliminations	-4,563,995	-4,279,217	107
Total consolidated	83,787,902	75,775,895	111

Gross operating expenses of the Triglav Group in Q1 2022 by nature

	Gross operating expenses		Index	Share
Operating expenses by nature	Q1 2022	Q1 2021	Q1 2022/ Q1 2021	Q1 2022
Acquisition cost (fees and commissions)	9,881,967	7,640,963	129	20.4%
Depreciation of operating assets	3,831,573	3,096,722	124	7.9%
Labour costs	24,869,603	24,456,108	102	51.4%
- wages and salaries	18,376,335	18,532,006	99	38.0%
- social securities and pension insurance costs	3,109,214	3,070,242	101	6.4%
- other labour costs	3,384,054	2,853,860	119	7.0%
Costs of services provided by natural persons other than SPs, including related taxes	81,971	60,410	136	0.2%
Other operating costs	9,755,996	9,400,775	104	20.1%
- costs of entertainment, advertising, trade shows	1,560,154	1,753,668	89	3.2%
- costs of material and energy	1,375,011	805,895	171	2.8%
- maintenance costs	2,067,362	2,045,179	101	4.3%
- reimbursement of labour-related costs	673,480	603,816	112	1.4%
- costs of intellectual and personal services	637,485	499,893	128	1.3%
- non-income related costs, excluding insurance	152,997	150,899	101	0.3%
- costs of transport and communication services	685,605	661,680	104	1.4%
- costs for insurance premiums	44,736	101,731	44	0.1%
- payment transaction costs and banking services	341,830	252,112	136	0.7%
- rents	1,041,258	1,142,117	91	2.2%
- costs of professional training services	167,769	217,451	77	0.3%
- other costs of services	1,008,309	1,166,334	86	2.1%
Total	48,421,110	44,654,978	108	100.0%

Gross operating expenses of Zavarovalnica Triglav in Q1 2022 by nature

4.6Reinsurance

In the first three months of 2022, the Triglav Group allocated EUR 72.8 million of reinsurance and coinsurance premiums to external equalisation, up by 19% relative to the corresponding period last year. Reinsurance premium accounted for 17.9% of total gross written insurance and coinsurance premium, up by 1.4 percentage points relative to the same period in 2021. Reinsurance premium growth was mainly the result of the increased volume of non-life insurance premium, primarily those policies underwritten based on the principle of freedom of movement of services (FOS) and inward reinsurance. Higher reinsurance prices in the global reinsurance market also contributed to growth. The reinsurers' share in gross claims settled of EUR 8.3 million (index 98) was received from reinsurance.

In the reporting period, Zavarovalnica Triglav allocated EUR 61.3 million of reinsurance and coinsurance premiums to external equalisation, an increase of 22% compared to the same period in 2021. Reinsurance premium accounted for 25.0% of total gross written premium. The reinsurers' and coinsurers' share in gross claims settled of EUR 6.9 million (index 81) was received from reinsurance and coinsurance.

4.7 Insurance technical provisions

Gross insurance technical provisions are the basis for balanced operations and ensure the long-term safety of insured persons. As at 31 March 2022, the Triglav Group had gross insurance technical provisions of EUR 3,219.5 million, up by 1% relative to 31 December 2021. The

Total gross insurance technical provisions of the Triglav Group amounted to EUR 3,219,5 million, up by 1%.

amount of gross insurance technical provisions increased in non-life insurance (index 109) and health insurance (index 101) and decreased in life and pension insurance (index 96). As at the reporting date, Zavarovalnica Triglav allocated EUR 2,292.0 million to gross insurance technical provisions, which was 1% more than as at 31 December 2021.

Provisions of the Triglav Group by type as at 31 March 2022 relative to 31 December 2021:

• Gross unearned premium was 23% higher and amounted to EUR 456.0 million. Unearned premium from non-life insurance increased by 23% to EUR 451.4 million, unearned premium from health insurance rose by 17% to EUR 4.1 million and unearned premium from life and pension insurance grew by 10% to EUR 501 thousand. The movement of gross unearned premium corresponds to the movement and duration of gross written premium and the nature of underwritten risks.
• Gross claims provisions rose by 1% to EUR 703.2 million. Gross claims provisions are created for covering claims incurred but not settled by the end of the accounting period. Claims provisions for non-life insurance totalled EUR 664.5 million (index 101), those for life and pension insurance equalled EUR 23.2 million (index 100), and those for health insurance amounted to EUR 15.4 million (index 96).
• Mathematical provisions declined by 3% to EUR 1,985.6 million. Mathematical provisions for the guarantee fund backing life insurance totalled EUR 1,383.5 million (index 97), while insurance technical provisions for unit-linked life insurance contracts amounted to EUR 602.1 million (index 97). They fell due to the drop in the price of fund units. Zavarovalnica Triglav's mathematical provisions of EUR 1,496.2 million accounted for the bulk (index 97), of which mathematical provisions for the guarantee fund backing life insurance amounted to EUR 976.2 million (index 97) and insurance technical provisions for unit-linked life insurance contracts equalled EUR 520.0 million (index 96).
• Provisions for bonuses and discounts rose by 2% to EUR 27.9 million.
• Other insurance technical provisions amounted to EUR 46.8 million and were lower by 10% predominantly due to a decrease in provisions as a result of the liability adequacy test for life insurance at Zavarovalnica Triglav.

Gross insurance technical provisions of the Triglav Group as at 31 March 2022

	Gross insurance technical provisions	Index
	31 March 2022	31 December 2021	2022/2021
Unearned premium	456,014,858	370,043,725	123
Mathematical provisions	1,985,617,597	2,054,917,059	97
Claims provisions	703,159,372	694,498,311	101
Provisions for bonuses and discounts	27,924,715	27,464,185	102
Other insurance technical provisions	46,780,386	51,748,503	90
Total	3,219,496,928	3,198,671,783	101

Gross insurance technical provisions of Zavarovalnica Triglav as at 31 March 2022

	Gross insurance technical provisions	Index
	31 March 2022	31 December 2021	2022/2021
Unearned premium	306,649,286	246,017,850	125
Mathematical provisions	1,496,167,938	1,548,454,207	97
Claims provisions	455,879,410	446,567,255	102
Provisions for bonuses and discounts	23,728,582	23,724,069	100
Other insurance technical provisions	9,586,515	15,744,857	61
Total	2,292,011,731	2,280,508,238	101

4.8 Investment structure of the Triglav Group and Zavarovalnica Triglav

The Triglav Group pursues a relatively conservative investment policy in order to achieve an adequate return on its investment portfolio, with an emphasis on the security and liquidity of investments. In its implementation, the Group pursues the goal of achieving a high credit rating of the entire portfolio. In accordance with the investment policy's sustainability aspect, the Company incorporates environmental, social and governance (ESG) factors in its investment process.

Through active investment, the Group maintained a portfolio composition comparable to the balance as at 31 December 2021. The Group's financial investments including investment property and investments in associates totalled EUR 3,514.6 million as at 31 March 2021, down by 4% relative to 31 December 2021. Their share in the Group's total assets was down by 3.9 percentage points to 80.0%.

Financial investments (including investment properties and investments in associates) of the Triglav Group as at 31 March 2022 and 31 December 2021

	Financial investments		Index	Share
	31 March 2022	31 December 2021	2022/2021	31 Mar. 2022	31 Dec. 2021
Investment property	75,032,536	75,110,973	100	2.1%	2.0%
Shares in associates	36,297,195	36,031,343	101	1.0%	1.0%
Shares and other floating-rate securities	315,917,588	330,960,660	95	9.0%	9.0%
Debt and other fixed return securities	2,404,308,136	2,512,569,818	96	68.4%	68.5%
Loans given	4,596,552	4,525,184	102	0.1%	0.1%
Deposits with banks	66,326,032	70,472,827	94	1.9%	1.9%
Other financial investments Financial investments of reinsurance companies in	5,736,548	5,810,984	99	0.2%	0.2%
reinsurance contracts with cedents	12,841,103	13,340,360	96	0.4%	0.4%
Derivatives	88,680	20,317	436	0.0%	0.0%
Unit-linked insurance contract investments	593,433,516	619,617,488	96	16.9%	16.9%
Total	3,514,577,886	3,668,459,954	96	100.0%	100.0%

As shown in the table, the shares of individual asset classes in the portfolio are comparable to the balance as at 31 December 2021. The bulk of the investment portfolio, 68.4%, is represented by bonds invested in developed markets, most of which have a high credit rating. Their value as well as the value of the equity portfolio decreased by a few percentage points due to the situation on the financial markets in the first quarter. A similar impact was seen in connection with unit-linked life insurance contract investments. The majority of this asset class is accounted for by assets invested in mutual funds of the policyholders' choice and mostly in funds managed by Triglav Skladi.

Investment structure of the Triglav Group as at 31 March 2022

The detailed structure of the Group's bond and equity portfolio is presented below, and the data for the Company are presented at the end of this section.

The bond portfolio is of high quality and globally diversified. A total of 90.8% of bond investments have an investment grade credit rating of at least "BBB" (compared to 90.9% as at 31 December 2021) and 58.5% have at least the "A" credit rating (compared to 59.4% as at 31 December 2021).

	Debt securities		Index	Share
Credit rating	31 March 2022	31 December 2021	2022/2021	31 Mar. 2022	31 Dec. 2021
AAA	417,658,282	438,921,752	95	17.4%	17.5%
AA	383,067,273	376,763,744	102	15.9%	15.0%
A	606,180,994	677,949,441	89	25.2%	27.0%
BBB	775,234,827	789,294,818	98	32.2%	31.4%
Below BBB	178,282,406	185,667,718	96	7.4%	7.4%
Not rated	43,884,353	43,972,345	100	1.8%	1.8%
Total	2,404,308,136	2,512,569,818	96	100.0%	100.0%

Debt securities of the Triglav Group by credit rating

Note: Unit-linked insurance contract investments data excluded.

The largest share (63.8%) in the Group's bond portfolio by issuer sector was accounted for by government bonds. In terms of volume, they fell by 6% relative to the 2021 year-end, while their share decreased by 1.4 percentage points. Government bonds are followed by financial bonds accounting for 18.9% and corporate bonds accounting for 17.3%, both shares were higher.

Debt securities of the Triglav Group by issuer sector

		Debt securities	Index	Share
Issuer sector	31 March 2022	31 December 2021	2022/2021	31 Mar. 2022	31 Dec. 2021
Government	1,533,178,163	1,637,292,470	94	63.8%	65.2%
Financial	454,695,217	450,896,480	101	18.9%	17.9%
Corporate	415,446,303	423,363,902	98	17.3%	16.8%
Structured	988,454	1,016,966	97	0 %	0 %
Total	2,404,308,136	2,512,569,818	96	100.0%	100.0%

Note: Unit-linked insurance contract investments data excluded.

In terms of issuer country, the majority of the portfolio is accounted for by debt securities of issuers from the countries with a high credit rating, which ensures adequate security and liquidity. Certain changes in exposure to individual countries are a result of price fluctuations and tactical adjustments of some positions.

	Debt securities		Index	Share
Country of issuer	31 March 2022	31 December 2021	2022/2021	31 Mar. 2022	31 Dec. 2021
Germany	348,533,455	371,741,005	94	14.5%	14.8%
Slovenia	291,285,729	312,387,021	93	12.1%	12.4%
France	208,644,358	202,916,739	103	8.7%	8.1%
International financial institutions	151,718,320	153,800,111	99	6.3%	6.1%
Spain	146,234,190	154,859,010	94	6.1%	6.2%
Italy	135,640,725	133,591,273	102	5.6%	5.3%
USA	121,450,033	132,660,828	92	5.1%	5.3%
Croatia	118,956,367	113,080,581	105	4.9%	4.5%
Netherlands	96,359,390	90,155,239	107	4.0%	3.6%
Austria	65,575,328	66,664,263	98	2.7%	2.7%
Other	719,910,241	780,713,748	92	29.9%	31.1%
Total	2,404,308,136	2,512,569,818	96	100.0%	100.0%

Debt securities of the Triglav Group by issuer country

Note: Unit-linked insurance contract investments data excluded.

In accordance with the investment policy's sustainability aspect and strategic ambitions in sustainability, the Group takes into account environmental, social and governance factors (ESG) in the management of its investments, investing in sustainable asset classes and exercising its management rights when making decisions related to sustainable development with those issuers in its portfolio where this is possible. More information is available on the Company's website https://www.triglav.eu/sl/trajnostni-razvoj/trajnostno-poslovanje.

The Group's sustainable fixed-income investments are shown in the table below. Compared to last year, their volume almost doubled; in the first quarter of 2022, it further increased and reached EUR 227.3 million. Their share in the bond portfolio stands at 9.5% (compared to 8.1% as at 31 December 2021).

	Sustainable (ESG) fixed-income investments of the Triglav Group

		Sustainable fixed income investments	Share in debt securities
	31 March 2022	31 December 2021	31 December 2021 31 Mar. 2022 31 Mar. 2021			31 Mar. 2020
Social impact bonds*	90,260,273	83,630,721	33,278,595	3.8%	3.3%	1.3%
Green bonds**	119,260,312	104,433,167	67,424,385	5.0%	4.2%	2.6%
Sustainable bonds***	17,799,002	16,448,265	3,629,090	0.7%	0.7%	0.1%
Total ESG bonds	227,319,587	204,512,153	104,332,071	9.5%	8.1%	4.1%

* Bonds with a social impact are an instrument for funding social services.

** Green bonds are an instrument for funding environmental projects, the funds of which are intended for ecologically efficient products, technologies and processes, pollution prevention and control, sustainable management of natural resources, sustainable management of water resources, renewable energy use, energy efficiency and clean transport.

*** Sustainable bonds are an instrument for funding sustainability projects and a combination of green and social impact bonds. Funding is often conditional on achieving sustainability goals.

Equity investments, which comprise shares and other variable-income securities and investments in associates, represent 10.0% of the Group's total portfolio (the same as 31 December 2021). Their value dropped by 4% to EUR 352.2 million predominantly due to the situation on stock markets. Equity investments also include the category other funds, which comprises mostly alternative funds, among which the alternative fund managed by the associate Trigal holds a significant share.

		Equity investments of the Triglav Group by investment type

		Equity investments	Index	Share
Equity investment type	31 March 2022	31 December 2021	2022/2021	31 Mar. 2022	31 Dec. 2021
Shares	120,868,310	128,582,339	94	34.3%	35.0%
Equity funds	80,798,171	85,330,024	95	22.9%	23.3%
Bond funds	56,350,980	62,836,072	90	16.0%	17.1%
Money market funds	4,255,399	4,177,739	102	1.2%	1.1%
Other funds	89,941,922	86,065,829	105	25.5%	23.5%
Total	352,214,783	366,992,003	96	100.0%	100.0%

Equity investments of the Triglav Group by geographic area

		Equity investments	Index	Share
Geographic area	31 March 2022	31 December 2021	2022/2021	31 Mar. 2022	31 Dec. 2021
Slovenia	95,910,757	103,490,296	93	27.2%	28.2%
Developed markets	234,485,665	244,542,137	96	66.6%	66.6%
Developing markets	13,357,466	13,588,353	98	3.8%	3.7%
Balkans	8,460,895	5,371,218	158	2.4%	1.5%
Total	352,214,783	366,992,003	96	100.0%	100.0%

At Zavarovalnica Triglav, financial investments, including investment property, amounted to EUR 2,600.1 million as at 31 March 2022, down by 5%.

Financial investments (including investment properties and investments in subsidiaries and associates) of Zavarovalnica Triglav as at 31 March 2022 and 31 December 2021

	Financial investments	Index	Share
	31 March 2022	31 December 2021	2022/2021	31 Mar. 2022	31 Dec. 2021
Investment property	43,525,653	43,840,055	99	1.7%	1.6%
Investments in subsidiaries and associates	173,618,679	173,618,679	100	6.7%	6.4%
Shares and other floating rate securities	197,407,699	204,009,208	97	7.6%	7.5%
Debt and other fixed return securities	1,648,725,136	1,736,539,693	95	63.4%	63.7%
Loans given	4,108,839	5,155,689	80	0.2%	0.2%
Deposits with banks	14,128,023	19,660,793	72	0.5%	0.7%
Other financial investments	3,271,099	3,278,363	100	0.1%	0.1%
Derivatives	88,680	20,317	436	0.0%	0.0%
Unit-linked insurance contract investments	515,264,129	539,417,972	96	19.8%	19.8%
Total	2,600,137,937	2,725,540,769	95	100.0%	100.0%

4.9 Asset management

Asset management at the Triglav Group comprises the management of the parent company's own insurance portfolios (assets backing liabilities and guarantee funds), saving of clients through the Group's life and pension insurance companies, asset management by Trigal and the management of clients' assets in mutual funds and discretionary mandates by Triglav Skladi. The value of assets under management of the Triglav Group as at 31 March 2022:

• own insurance portfolio: EUR 2,921.1 million (index 96),
• mutual funds and discretionary mandate assets at Triglav Skladi: EUR 1,487.4 million (index 97),
• investment management at Trigal: EUR 93.7 million (index 102).

Asset and investment fund management market

As at 31 March 2022, five management companies operated in Slovenia, which managed the net asset value of EUR 4.2 billion in mutual funds, down by 4% relative to the 2021 year-end. The decline in assets was influenced by negative trends in capital markets related to the war in Ukraine. A total of six companies provided discretionary mandate services, of which four were asset management companies. The value of discretionary mandate assets managed by said companies amounted to EUR 2.7 billion as at 31 March 2020, an increase of 45% relative to 31 December 2021.

Triglav Skladi managed EUR 1.3 billion in mutual funds as at 31 March 2022, down by 4% relative to 31 December 2021. The value of net assets under management increased by EUR 17.0 million due to net inflows and decreased by EUR 72.2 million due to the situation in capital markets. Triglav Skladi held a 31.7% market share as at the reporting date (compared to 31.8% as at 31 December 2021) and is thus one of the leading managers of assets in investment funds in Slovenia.

Triglav Skladi increased the value of discretionary mandate assets by 2% to EUR 170.5 million. Net inflows amounted to EUR 11.5 million, while the effect of capital markets decreased net asset value by EUR 8.3 million. The company's market share fell by 2.6 percentage points to 6.3%.

5. Financial result and financial position

5.1 Financial result

In the first three months of 2022, the Triglav Group performed well, recording a profit before tax of EUR 38.1 million, up by 20% relative to the same period last year. The profit was driven by growth in business volume, disciplined

In the first quarter of 2022, the Triglav Group posted profit before tax of EUR 38.1 million.

and prudent underwriting, income growth in non-insurance operations and negative investment returns due to impairments of Russian bonds and unfavourable financial market conditions. Net profit of EUR 33.2 million rose by 25% compared to the preceding year. Annualised net return on equity was 15.5%, up by 2.7 percentage points.

Zavarovalnica Triglav posted profit before tax of EUR 26.1 million, an increase of 42% relative to the corresponding period of 2021. Net profit grew by 49% to EUR 22.5 million.

The combined ratio of the Triglav Group was 87.3%, having improved by 0.6 percentage point relative to the same period of 2021. The combined ratio shows the profitability of operations in the non-life and health insurance segments. Any value of this ratio below 100 means that the non-life and health insurance portfolios of the core business (excluding return on investment) are earning a profit. The decrease in the combined ratio resulted from the improvement in the claims ratio. The decrease in the combined ratio resulted from the improvement in the claims ratio, primarily due to higher net premium income and fewer additional insurance technical provisions for health insurance than in the same period last year.

Insurance companies	Q1 2022	Q1 2021	Change
Zavarovalnica Triglav	78.8%	82.6%	-3.8 p.p.
Triglav, Zdravstvena zavarovalnica	91.7%	94.9%	-3.2 p.p.
Pozavarovalnica Triglav Re	98.5%	88.9%	9.5 p.p.
Triglav Osiguranje, Zagreb	98.1%	91.4%	6.8 p.p.
Triglav Osiguranje, Belgrade	93.6%	88.0%	5.6 p.p.
Lovćen Osiguranje, Podgorica	94.8%	94.6%	0.2 p.p.
Triglav Osiguranje, Sarajevo	92.8%	93.2%	-0.4 p.p.
Triglav Osiguranje, Banja Luka	95.9%	96.1%	-0.2 p.p.
Triglav Osiguruvanje, Skopje	99.9%	122.5%	-22.6 p.p.
The Triglav Group	87.3%	87.9%	-0.6 p.p.

Combined ratios in non-life and health insurance in the Triglav Group and by insurance company

Total revenue increased by 12%, amounting to EUR 442.9 million. It is composed of gross written premium in the amount of EUR 407.1 million (index 110), other insurance income in the amount of EUR 16.5 million (index 122) and other income in the amount of EUR 19.4 million (index 181). The majority of other income represents income from asset management, amounting to EUR 7.8 million (index 119).

Net premium income rose by 7% to EUR 283.5 million. Net premium income from non-life insurance and from life and pension insurance grew by 8%, while net premium income from health insurance increased by 3%. Net premium income comprises gross written premium in the amount of EUR 407.1 million, less written premium ceded to reinsurance and coinsurance in the amount of EUR 72.8 million (index 119) and adjusted by the change in net unearned premium of EUR –50.7 million (index 111).

Net claims incurred rose by 8% to EUR 185.5 million. The highest growth (11%) was recorded in health insurance due to higher gross claims paid (the lack of availability of healthcare services due to the pandemic last year). Net claims incurred increased by 8% in non-life insurance and by 7% in life and pension insurance. Net claims incurred comprise gross claims paid in the amount of EUR 196.7 million (index 115) less reinsurers' and coinsurers' shares in gross claims paid in the amount of EUR 8.3 million (index 98), adjusted by the change in claims provisions of EUR – 4.6 million (compared to EUR 6.9 million in 2021) and increased by equalisation scheme expenses for supplemental health insurance in the amount of EUR 1.7 million (index 113).

Income from investments, including income from investments in associates, decreased by 72% to EUR 14.7 million. Income from investments in associates amounted to EUR 443 thousand, down by 24%, and income from investments totalled EUR 14.2 million, down by 72%. Interest income was down by 12% and reached EUR 7.7 million, while gains on disposal of investments dropped to EUR 396 thousand (compared to EUR 3.7 million in 2021), primarily due to unfavourable situation in the financial markets accompanied by the declining prices of both bonds and shares. Other income from investments declined to EUR 6.1 million (compared to EUR 38.8 million in the same period of 2021). Other income from investments comprises other income from financial investments of EUR 3.1 million (index 74), changes in the fair value of EUR 1.7 million (index 31), dividends of EUR 397 thousand (index 135) and net unrealised gains on unit-linked life insurance assets of EUR 941 thousand (compared to EUR 28.9 million in 2021). The latter decreased predominantly due to the fall in share prices, to which the majority of policyholders' investments under these insurance contracts are tied (a drop in prices of fund units).

Expenses from investments, including expenses from investments in associates, rose to EUR 74.3 million (compared to EUR 10.4 million in the corresponding period of 2021). Expenses from investments in associates amounted to EUR 302 thousand (index 516), while expenses from investments totalled EUR 74.0 million (compared to EUR 10.3 million in 2021). Impairment of investments (impairment of Russian bonds) amounted to EUR 6.2 million (none last year), losses on disposal amounted to EUR 3.7 million (index 279) and other expenses from investments amounted to EUR 64.0 million (compared to EUR 9.0 million in 2021). Other expenses from investments comprise net unrealised losses on unit-linked life insurance assets totalling EUR 31.8 million (compared to EUR 621 thousand in 2020), changes in the fair value of EUR 30.2 million (index 493) and other financial expenses in the amount of EUR 2.1 million (index 93).

The Group's returns on investment (excluding unit-linked insurance contract investments) were negative and totalled EUR –15.9 million, whereas in the same period last year they amounted to EUR 9.0 million. The reasons for the negative return on investment are mainly falling bond prices due to

Return on investment was negative primarily due to the impairment of investments, higher net expenses from changes in the fair value and lower realised capital gains.

rising interest rates and falling prices of equity investments, which was reflected in higher net expenses from changes in the fair value, lower realised capital gains and impairments of Russian bond investments.

Return on investment also impacts the amount of insurance technical provisions and net profit of the Group. Profit before tax from investments is presented in the table Structure of profit before tax.

Change in other insurance technical provisions amounted to EUR –41.2 million and was lower than in the preceding year (EUR –246 thousand), predominantly due to the decline in mathematical provisions (EUR –42.1 million). Change in insurance technical provisions for unitlinked insurance contracts equalled EUR –22.2 million (compared EUR 39.4 million in the same period last year) due to the decrease in the value of fund units. Expenses for bonuses and discounts rose by 30% to EUR 3.1 million mainly as a result of provisions created for managers' liability insurance bonuses at Triglav Osiguruvanje, Skopje.

Operating expenses (acquisition costs and other operating expenses) amounted to EUR 67.1 million, up by 10%. Acquisition costs rose by 13% and other operating expenses by 6%. The share of operating expenses from insurance operations (all functional cost groups) in gross written premium was 18.5%, up by 0.1 percentage point.

Other insurance income, excluding fees and commissions, increased by 11% to EUR 2.7 million predominantly as a result of higher interest income from subrogation receivables. Other insurance expenses, excluding fees and commissions, grew by 14% to EUR 5.8 million, mainly due to higher other insurance expenses at Triglav, pokojninska družba and higher contributions to cover uninsured vehicles at the parent company. Net fee and commission income rose by 44% by to EUR 4.9 million primarily due to the high growth of written premium ceded to reinsurance.

Other income was up by 81%, reaching EUR 19.4 million. Its high growth mainly resulted from higher income from the sale of investment property at Triglav, Upravljanje nepremičnin and higher management fee income at Triglav Skladi. The 19% growth in other expenses (EUR 14.7 million) mainly resulted from their movement at the parent company.

	Q1 2022	Q1 2021	Index
Net premium income	283,536,788	264,714,265	107
Income from investments including income in subsidiaries and associates	14,685,540	51,898,977	28
Other income from insurance operations	16,470,461	13,550,808	122
Other income	19,397,223	10,728,240	181
Net claims incurred	185,484,284	171,196,826	108
Change in other insurance technical provisions (excluding ULI)	-41,152,044	-246,133	16,719
Change in insurance technical provisions for unit-linked insurance contracts	-22,243,317	39,408,607
Expenses for bonuses and discounts	3,053,545	2,344,941	130
Operating expenses	67,066,317	60,752,599	110
Expenses form investments including expenses in subsidiaries and associates	74,255,175	10,403,242	714
Other insurance expenses	14,746,615	12,864,879	115
Other expenses	14,730,153	12,368,874	119
Profit before tax	38,149,284	31,798,456	120
Income tax expense	4,909,985	5,262,531	93
Net profit for the accounting period	33,239,299	26,535,925	125

Individual items in the consolidated income statement of the Triglav Group for Q1 2022

The structure of profit before tax of the Triglav Group*

	Q1 2022			Q1 2021
		Life and				Life and
	Non-life	pension	Health	Total	Non-life	pension	Health	Total
Profit before tax from underwriting activities	21,595,763	4,686,737	4,350,096	30,632,596	19,460,477	4,389,966	2,665,134	26,515,577
Profit before tax from investment activities	-1,236,623	2,542,039	-813,634	491,782	3,879,561	-331,874	121,032	3,668,719
Profit before tax from insurance operations	20,359,140	7,228,776	3,536,462	31,124,378	23,340,038	4,058,092	2,786,166	30,184,296
Profit before tax from non-insurance operations				7,024,906				1,614,159
Total profit before tax				38,149,284				31,798,456

*Profit from return on investment is reduced by the return guaranteed by the Group's insurance subsidiaries to life insurance policyholders in the form of a guaranteed return determined in insurance contracts. In addition, return on investment is reduced by the increase in mathematical provisions due to the lower internally set maximum interest rate used for the valuation of life insurance liabilities.

Profit before tax of the Group's non-life and health insurance segments amounted to EUR 23.9 million in the first quarter of 2022, down by EUR 2.2 million compared to the same period the year before. The decrease was primarily a result of profit before tax from investments, which was negative in the reporting period, mainly due to the impairments of Russian bond investments, lower realised capital gains and higher net expenses from changes in the fair value. Profit before tax from underwriting activities grew by 17%, which was predominantly due to higher net premium income and higher other insurance income as well as fewer additional insurance technical provisions for health insurance than in the same period last year.

Profit before tax of the Group's life and pension insurance segment amounted to EUR 7.2 million, an increase of EUR 3.2 million compared to the same period of 2021. Profit before tax of the parent company was higher by EUR 4.0 million. The main reason for the improved result is the release of additional provisions due to the rise in the interest rate curve, whereas new additional provisions were made in the corresponding period last year. The difference due to changes in additional provisions therefore amounts to EUR 8.3 million and offsets the unfavourable difference between this year's and last year's quarterly return on financial investments. Due to this year's negative returns on financial investments, it amounted to EUR –5.4 million in the first quarter. The improvement in Zavarovalnica Triglav's underwriting result, claims ratio and reinsurance result in the total value of EUR 0.5 million also has a slightly smaller impact on the growth of profit before tax. Profit before tax of other Group members fell by EUR 1.3 million primarily due to an increase in other insurance expenses at Triglav, pokojninska družba.

Structure of profit before tax of the Triglav Group in Q1 2022 and Q1 2021

	Q1 2022	Q1 2021	Index
Net premium income	150,592,834	141,325,759	107
Income from investments including income in subsidiaries and associates	6,652,299	38,136,014	17
Other income from insurance operations	15,090,715	11,198,868	135
Other income	4,155,594	2,107,245	197
Net claims incurred	94,396,559	90,033,412	105
Change in other insurance technical provisions	-24,463,047	-5,125,433	477
Change in insurance technical provisions for unit-linked insurance contracts	-22,449,315	32,247,485
Expenses for bonuses and discounts	2,275,409	2,199,937	103
Operating expenses	42,190,648	38,957,009	108
Expenses form investments including expenses in subsidiaries and associates	46,817,818	5,897,263	794
Other insurance expenses	5,960,471	5,726,985	104
Other expense	5,638,559	4,380,300	129
Profit/loss before tax	26,124,342	18,450,928	142
Income tax expense	3,636,508	3,393,126	107
Net profit/loss for the accounting period	22,487,834	15,057,802	149

Individual items in the income statement of Zavarovalnica Triglav for Q1 2022

5.2 Financial position

Balance sheet total of the Triglav Group as at 31 March 2022 stood at EUR 4.4 billion, which is approximately at the same level as 31 December 2021 (index 100).

Total equity as at 31 March 2022 amounted to EUR 899.4 million, down by 4% relative to the 2021 year-end predominantly due to the lower fair value reserve. Total equity in total balance sheet liabilities fell by 0.9

As at the reporting date, total equity amounted to EUR 899.4 million.

percentage point to 20.5%. Equity attributable to the controlling company declined by 4% to EUR 897.1 million. Non-controlling interests fell to EUR 2.3 million (index 93) primarily due to a decrease in fair value reserve and acquisition of minority interests. The share capital of EUR 73.7 million remained unchanged and was divided into 22,735,148 ordinary shares. As a result of a decrease in the value of available-for-sale financial assets, fair value reserve declined by 85% to EUR 11.3 million. Share premium of EUR 50.3 million remained at a level approximately equal to the 2021 year-end (index 100).

Reserves from profit in the amount of EUR 421.6 million (index 100) remained unchanged compared to 31 December 2021. They comprise other reserves from profit of EUR 400.7 million, legal and statutory reserves in the amount of EUR 20.3 million and contingency reserves of EUR 640 thousand. Accumulated profitreached EUR 343.3 million, up by 11%. In addition to EUR 33.3 million (index 44) in net profit for the year, it includes EUR 310.0 million of net profit brought forward (index 132). Net profit brought forward increased by EUR 75.4 million due to the transfer of net profit for the previous year.

Subordinated liabilities amounted to EUR 49.5 million and were at a level approximately equal to the 2021 year-end (index 100).

Gross insurance technical provisions were 1% higher, totalling EUR 3,219.5 million. They represented 73.3% of total balance sheet liabilities, up by 0.1 percentage point relative to the 2021 year-end. Mathematical provisions of EUR 1,985.6 million declined by 3%; other insurance technical provisions also decreased (index 94). By contrast, gross claims provisions (index 101) and provisions for gross unearned premium (index 123) increased. Insurance technical provisions are discussed in greater detail in Section 4.7.

Other financial liabilities rose to EUR 4.1 million (index 133) mainly due to an increase in shortterm financing liabilities from transactions after the reporting period at Zavarovalnica Triglav. Their share accounted for only 0.1% of total liabilities.

Operating liabilities grew by 48% over the 2021 year-end and amounted to EUR 93.9 million, thus representing 2.1% of balance sheet total. Their growth was predominantly influenced by 62% increase in liabilities from reinsurance and coinsurance operations (EUR 67.0 million).

Lease liabilities amounted to EUR 10.5 million, a decrease of 7% relative to the 2021 year-end. Lease liabilities comprise long-term lease liabilities of EUR 9.3 million (index 92) and short-term lease liabilities of EUR 1.2 million (index 97).

Other provisions declined by 1% to EUR 20.0 million. Compared to 31 December 2021, deferred tax liabilities fell by 61% to EUR 3.6 million primarily due to the lower fair value reserve for which deferred tax is calculated. Other liabilities increased by 10% to EUR 94.6 million mainly due to short-term trade payables and changing the method of recording operating expenses from current data to those calculated at the parent company.

Financial investments, representing 63.9% of total assets, amounted to EUR 2,809.8 million, down by 4% relative to the 2021 year-end. Available-for-sale financial assets, which totalled EUR 2,054.9 million, accounted for the bulk. Furthermore, EUR 463.1 million was accounted for by financial assets measured at fair value through profit or loss, EUR 198.3 million by held-tomaturity financial assets and EUR 93.6 million by deposits and loans. Unit-linked insurance assets amounted to EUR 593.4 million, down by 4%. The structure of financial assets is discussed in greater detail in Section 4.8.

The Group's financial investments in associates of 36.3 million were higher by 1% compared to 31 December 2021. Subordinated liabilities amounted to EUR 75.0 million and were at a level approximately equal to the 2021 year-end (index 100).

Receivables and deferred tax assets increased by 38% to EUR 295.2 million over the 2021 yearend and accounted for 6.7% of total assets, of which receivables from direct insurance operations accounted for the bulk at EUR 171.6 million (index 147), an increase of 9% relative to 31 December 2021. Receivables from coinsurance and reinsurance operations reached EUR 82.4 million (index 123), other receivables stood at EUR 25.0 million (index 103) and current tax receivables at EUR 4.2 million (index 102). Deferred tax assets increased to EUR 11.9 million (compared to EUR 927 thousand as at the 2021 year-end) due to a decrease in the value of financial assets.

Insurance technical provisions transferred to reinsurance contracts increased by 23% and amounted to EUR 215.0 million. Assets from reinsurance contracts from claims provisions were 11% higher and totalled EUR 129.3 million, assets from unearned premium rose by 50% to EUR 79.6 million and assets from mathematical provisions grew by 9% to EUR 6.1 million.

Property, plant and equipment totalled EUR 111.4 million, an increase of 3% relative to 31 December 2021. Intangible assets amounted to EUR 115.7 million, up by 8%, due to the growth of long-term deferred acquisition costs.

Non-current assets held for sale of EUR 666 thousand declined by 83% due to the sale of real property of Triglav, Upravljanje nepremičnin.

Right-of-use assets amounted to EUR 10.2 million, down by 7% relative to the 2021 year-end. They comprise the right to use land and buildings of EUR 7.9 million (index 92), the right to use vehicles of EUR 2.2 million (index 98) and the right to use other assets of EUR 77 thousand (index 91).

Cash and cash equivalents amounted to EUR 124.8 million (index 152) and other assets totalled EUR 7.6 million (index 156).

		31 December
	31 March 2022	2021	Index	Share 2022	Share 2021
ASSETS	4,395,055,154	4,374,353,616	100	100.0%	100.0%
Intangible assets	115,733,396	107,184,415	108	2.6%	2.5%
Property, plant and equipment	111,373,347	108,655,212	103	2.5%	2.5%
Non-current assets held for sale	666,394	3,812,044	17	0.0%	0.1%
Investment property	75,032,536	75,110,973	100	1.7%	1.7%
Right-of-use assets	10,168,686	10,933,109	93	0.2%	0.2%
Investments in associates	36,296,966	36,031,346	101	0.8%	0.8%
Financial investments	2,809,814,639	2,937,700,150	96	63.9%	67.2%
Unit-linked insurance assets	593,433,516	619,617,488	96	13.5%	14.2%
Reinsurers' share of insurance technical provisions	215,043,222	174,839,890	123	4.9%	4.0%
Receivables and deferred tax assets	295,150,746	213,304,339	138	6.7%	4.9%
Other assets	7,560,837	4,843,025	156	0.2%	0.1%
Cash and cash equivalents	124,780,869	82,321,630	152	2.8%	1.9%
EQUITY AND LIABILITIES	4,395,055,154	4,374,353,616	100	100.0%	100.0%
Equity	899,422,621	932,986,869	96	20.5%	21.3%
Subordinated liabilities	49,479,600	49,471,831	100	1.1%	1.1%
Insurance technical provisions	2,617,369,188	2,576,368,384	102	59.6%	58.9%
Insurance technical provisions for unit-linked insurance contracts	602,127,740	622,303,399	97	13.7%	14.2%
Other provisions	20,024,804	20,184,669	99	0.5%	0.5%
Deferred tax liabilities	3,613,869	9,377,034	39	0.1%	0.2%
Other financial liabilities	4,098,407	3,085,647	133	0.1%	0.1%
Operating liabilities	93,854,916	63,341,658	148	2.1%	1.4%
Lease liabilities	10,471,412	11,274,806	93	0.2%	0.3%
Other liabilities	94,592,597	85,959,319	110	2.2%	2.0%

Individual items in the consolidated balance sheet of the Triglav Group as at 31 March 2022

		31 December
	31 March 2022	2021	Index	Share 2022	Share 2021
ASSETS	3.124.974.808	3.118.944.094	100	100.0%	100.0%
Intangible assets	73.638.340	67.022.027	110	2.4%	2.1%
Property, plant and equipment	67.981.328	65.143.307	104	2.2%	2.1%
Investment property	43.525.653	43.840.055	99	1.4%	1.4%
Right-of-use assets	4.266.265	4.548.298	94	0.1%	0.1%
Investments in subsidiaries and associates	173.618.680	173.618.680	100	5.6%	5.6%
Financial investments	1.867.746.046	1.968.679.979	95	59.8%	63.1%
Unit-linked insurance assets	515.264.129	539.417.972	96	16.5%	17.3%
Reinsurers' share of insurance technical provisions	170.194.236	136.077.958	125	5.4%	4.4%
Receivables and deferred tax assets	164.640.711	105.169.567	157	5.3%	3.4%
Other assets	2.661.878	1.513.260	176	0.1%	0.0%
Cash and cash equivalents	41.437.540	13.912.991	298	1.3%	0.4%
EQUITY AND LIABILITIES	3.124.974.808	3.118.944.094	100	100.0%	100.0%
Equity	649.489.516	675.221.933	96	20.8%	21.6%
Subordinated liabilities	49.479.600	49.471.831	100	1.6%	1.6%
Insurance technical provisions	1.772.051.238	1.740.373.185	102	56.7%	55.8%
Insurance technical provisions for unit-linked insurance
contracts	519.960.493	540.135.052	96	16.6%	17.3%
Other provisions	13.158.747	13.201.285	100	0.4%	0.4%
Deferred tax liabilities	0	4.212.732	0	0.0%	0.1%
Other financial liabilities	3.300.754	1.690.986	195	0.1%	0.1%
Operating liabilities	52.802.237	34.861.554	151	1.7%	1.1%
Lease liabilities	4.356.316	4.643.844	94	0.1%	0.1%
Other liabilities	60.375.906	55.132.093	110	1.9%	1.8%

Individual items in the balance sheet of Zavarovalnica Triglav as at 31 March 2022

6. Risk management

6.1 Risk Management

The Triglav Group fully and consistently abides by the restrictive measures imposed against Russia and Belarus by the European Union. See Section 1.5 Significant events in the reporting period for detailed information published in March this year regarding the Triglav Group's exposure to this situation. Said exposure did not change significantly at the end of the quarter and remains limited.

As the pandemic subsided, restrictive measures at the Company were lifted. However, increasing uncertainty is caused by the rising inflation rate, which could have adverse effects on business operations. See Section 4.1 The macroeconomic environment and environmental impact on the Company's operations for more information.

The Triglav Group maintains a good capital position within the target level of 200–250% after the end of the first quarter of 2022. Compared to the 2021 year-end, the overall risk assessment at Group level decreased in the first quarter of 2022, predominantly due to lower market risks as a result of their adequate management in the face of the challenging situation in the financial markets. Due to higher exposure to cash and cash equivalents and deteriorating credit ratings of Russian reinsurers, credit risks increased slightly, as did liquidity risks. Due to portfolio growth, non-life underwriting risks also increased. The increase in interest rates had a favourable effect on life underwriting risks, which decreased compared to the 2021 year-end, while in the short term it increases the risk of guaranteed return in pension insurance.

In the current situation, the Group identified increased cyber risks, which it is managing properly within the framework of the comprehensive risk management system.

6.2 Internal audit

In the first quarter of 2022, the Internal Audit Department complied with its annual work plan. It conducted internal audits of various areas in the Company and the Group. The findings were reported to both the management of the audited areas and to the Company's Management Board. In addition, the Internal Audit Department provided advisory services, monitored the implementation of recommendations made by internal and external auditors, monitored the work of internal audit departments in subsidiaries and provided them assistance, as well as performed other tasks.

The Internal Audit Department reported on its work to the Management Board, the Audit Committee and the Supervisory Board.

7. Employees of the Triglav Group

The Triglav Group had 5,278 employees as at 31 March 2022, up by 14 employees relative to 31 December 2021. The number of employees increased the most at Triglav Osiguranje, Belgrade predominantly as a result of new hires for a fixed term in sales.

Employees by Triglav Group market as at 31 March 2022

Employees by Triglav Group activity as at 31 March 2022

48

Accounting Report

		50
		51
		57
2.1		57
2.2	sanctions against Russia and Belarus and the COVID-19 pandemic	57
2.3		57
2.4		58
2.5		67
2.6	Significant	70
2.7		76
2.8		77
2.9		81
		Statement of management's responsibility Financial statements Selected notes to the financial statements Statement of compliance Significant accounting policies and estimates and the impact of the war in Ukraine, Seasonal operations Segmental analysis of the Triglav Group operations Segmental analysis of Zavarovalnica Triglav's operations items of the statement of financial position Changes in equity stakes in subsidiaries and business combinations Related party transactions Significant events after the reporting date

49

Statement of management's responsibility

The Management Board herewith confirms the financial statements for the period from 1 January 2022 to 31 March 2022 as well as the applied accounting policies and notes to the financial statements.

The Management Board is responsible for preparing the Interim Report so as to give a true and fair view of the assets and liabilities, the financial position and the profit or loss of the Triglav Group and Zavarovalnica Triglav, d.d. for the period from 1 January 2022 to 31 March 2022 in accordance with IAS 34 – Interim reporting.

The Management Board confirms that the appropriate accounting policies were consistently used and that the accounting estimates were prepared according to the principles of prudence and sound management. The Management Board further confirms that the financial statements and the notes thereto were prepared on a going concern basis for the Triglav Group and Zavarovalnica Triglav, d.d. and in line with the applicable legislation and International Financial Reporting Standards, as adopted by the EU.

The Management Board confirms that the Interim Management Report of the Triglav Group and Zavarovalnica Triglav, d.d. for the period from 1 January 2022 to 31 March 2022 includes a fair review of their business developments, results and financial positions, including a description of the major risks to which Zavarovalnica Triglav, d.d. as the parent company and its consolidated subsidiaries are exposed to as the Group.

The Management Board is also responsible for appropriate accounting practices, the adoption of appropriate measures for the safeguarding of assets, and for the prevention and detection of fraud and other irregularities or illegal acts.

Andrej Slapar President of the Management Board

Barbara Smolnikar Member of the Management Board

Uroš Ivanc Member of the Management Board

David Benedek Member of the Management Board

Tadej Čoroli Member of the Management Board

Marica Makoter Member of the Management Board

Ljubljana, 10 May 2022

1. Financial statements

in EUR
STATEMENT OF FINANCIAL POSITION	Triglav Group		Zavarovalnica Triglav
	31 March 2022	31 December 2021	31 March 2022	31 December 2021
ASSETS	4,395,055,154	4,374,353,616	3,124,974,808	3,118,944,094
Intangible assets	115,733,396	107,184,415	73,638,340	67,022,027
Property, plant and equipment	111,373,347	108,655,212	67,981,328	65,143,307
Non-current assets held for sale	666,394	3,812,044	0	0
Deferred tax assets	11,921,685	927,425	8,697,449	0
Investment property	75,032,536	75,110,973	43,525,653	43,840,055
Right of use assets	10,168,686	10,933,109	4,266,265	4,548,298
Investments in subsidiaries	0	0	131,924,683	131,924,683
Investments in associates	36,296,966	36,031,346	41,693,997	41,693,997
- accounted for using the equity method	36,296,966	36,031,346	0	0
- measured at fair value	0	0	41,693,997	41,693,997
Financial investments	2,809,814,639	2,937,700,150	1,867,746,046	1,968,679,979
- loans and deposits	93,560,966	98,104,537	25,979,526	32,521,523
- held to maturity	198,319,832	157,560,733	131,490,581	140,946,233
- available for sale	2,054,867,341	2,137,609,082	1,515,136,289	1,588,390,263
- recognised at fair value through profit and loss	463,066,500	544,425,798	195,139,650	206,821,960
Unit-linked insurance assets	593,433,516	619,617,488	515,264,129	539,417,972
Reinsurers' share of technical provisions	215,043,222	174,839,890	170,194,237	136,077,958
Receivables	283,229,061	212,376,909	155,943,263	105,169,567
- receivables from direct insurance operations	171,619,703	116,855,207	115,490,680	73,516,574
- receivables from reinsurance and co-insurance operations	82,352,188	67,200,932	31,151,465	23,522,340
- current tax receivables	4,220,829	4,127,384	436,908	564,166
- other receivables	25,036,341	24,193,386	8,864,210	7,566,487
Other assets	7,560,837	4,843,025	2,661,878	1,513,260
Cash and cash equivalents	124,780,869	82,321,630	41,437,540	13,912,991
EQUITY AND LIABILITIES	4,395,055,154	4,374,353,616	3,124,974,808	3,118,944,094
Equity	899,422,621	932,986,869	649,489,516	675,221,933
Controlling interests	897,128,846	930,511,224	649,489,516	675,221,933
- share capital	73,701,392	73,701,392	73,701,392	73,701,392
- share premium	50,304,675	50,283,747	53,412,884	53,412,884
- reserves from profit	421,633,959	421,633,959	404,562,643	404,562,643
- treasury share reserves	364,680	364,680	0	0
- treasury shares	-364,680	-364,680	0	0
- fair value reserve	11,349,405	77,834,278	7,664,383	55,884,634
- net profit brought forward	310,028,841	234,588,994	87,660,380	50,944,831
- net profit for the year	33,286,855	75,439,847	22,487,834	36,715,549
- currency translation differences	-3,176,281	-2,970,993	0	0
Non-controlling interests	2,293,775	2,475,645	0	0
Subordinated liabilities	49,479,600	49,471,831	49,479,600	49,471,831
Insurance technical provisions	2,617,369,188	2,576,368,384	1,772,051,238	1,740,373,185
- unearned premiums	456,014,858	370,043,725	306,649,286	246,017,849
- mathematical provisions	1,383,489,857	1,432,613,660	976,207,445	1,008,319,155
- claims provisions	703,159,372	694,498,311	455,879,410	446,567,255
- other insurance technical provisions	74,705,101	79,212,688	33,315,097	39,468,926
Insurance technical provisions for unit-linked insurance contracts	602,127,740	622,303,399	519,960,493	540,135,052
Employee benefits	17,573,369	17,672,133	12,799,426	12,842,304
Other provisions	2,451,435	2,512,536	359,322	358,980
Deferred tax liabilities	3,613,869	9,377,034	0	4,212,732
Other financial liabilities	4,098,407	3,085,647	3,300,754	1,690,586
Operating liabilities	93,854,916	63,341,658	52,802,237	34,861,554
- liabilities from direct insurance operations	23,518,551	19,450,557	13,312,764	10,182,945
- liabilities from reinsurance and co-insurance operations	66,953,809	41,241,465	39,489,473	24,678,609
- current tax liabilities	3,382,556	2,649,636	0	0
Lease liabilities Other liabilities	10,471,412 94,592,597	11,274,806 85,959,319	4,356,316 60,375,906	4,643,844 55,132,093

in EUR
INCOME STATEMENT	Triglav Group		Zavarovalnica Triglav
	Q1 2022	Q1 2021	Q1 2022	Q1 2021
NET PREMIUM INCOME	283,536,788	264,714,265	150,592,834	141,325,759
- gross written premium	407,069,242	371,691,908	244,874,157	226,133,390
- ceded written premium	-72,804,163	-61,229,679	-61,281,968	-50,077,254
- change in unearned premium reserve	-50,728,291	-45,747,964	-32,999,355	-34,730,377
INCOME FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES	442,813	579,910	15,240	63,190
- profit on equity investments accounted for using the equity method	442,813	579,910	0	0
- other income from investments in subsidiaries and associates	0	0	15,240	63,190
INCOME FROM INVESTMENTS	14,242,727	51,319,067	6,637,059	38,072,823
- interest income calculated using the effective interest method	7,740,688	8,834,280	4,413,713	5,040,353
- gains on disposals	395,824	3,715,125	223,941	3,320,440
- other income from investments	6,106,215	38,769,662	1,999,404	29,712,030
OTHER INCOME FROM INSURANCE OPERATIONS	16,470,461	13,550,808	15,090,715	11,198,868
- fees and commission income	13,779,760	11,131,944	13,193,448	9,619,746
- other income from insurance operations	2,690,701	2,418,864	1,897,268	1,579,122
OTHER INCOME	19,397,223	10,728,240	4,155,594	2,107,245
NET CLAIMS INCURRED	185,484,284	171,196,826	94,396,559	90,033,412
- gross claims settled	196,699,990	171,299,144	105,273,833	93,302,488
- reinsurers' share	-8,309,119	-8,488,760	-6,874,398	-8,488,461
- changes in claims provisions	-4,561,673	6,915,283	-4,002,876	5,219,385
- equalisation scheme expenses for supplementary health insurance	1,655,086	1,471,159	0	0
CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS (excluding ULI) CHANGE IN INSURANCE TECHNICAL PROVISIONS FOR UNIT-LINKED INSURANCE	-41,152,044	-246,133	-24,463,047	-5,125,433
CONTRACTS	-22,243,317	39,408,607	-22,449,315	32,247,485
EXPENSES FOR BONUSES AND DISCOUNTS	3,053,545	2,344,941	2,275,409	2,199,937
OPERATING EXPENSES	67,066,317	60,752,599	42,190,648	38,957,009
- acquisition costs	46,944,619	41,690,817	30,985,852	28,007,668
- other operating costs	20,121,698	19,061,782	11,204,796	10,949,341
EXPENSES FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES	301,754	58,467	34,348	1,441
- loss on investments accounted for using the equity method	301,754	58,467	0	0
- other expenses from financial assets and liabilities	0	0	34,348	1,441
EXPENSES FROM INVESTMENTS	73,953,421	10,344,774	46,783,468	5,895,821
- loss on impairment of investments	6,170,929	0	3,175,209	0
- loss on disposal of investments	3,747,190	1,344,531	3,261,542	1,267,444
- other expenses from investments	64,035,302	9,000,243	40,346,717	4,628,377
OTHER INSURANCE EXPENSES	14,746,615	12,864,879	5,960,471	5,726,985
OTHER EXPENSES	14,730,153	12,368,874	5,638,559	4,380,300
- expenses from financing	667,076	636,273	557,680	563,441
- other expenses	14,063,077	11,732,601	5,080,879	3,816,859
PROFIT BEFORE TAX	38,149,284	31,798,456	26,124,342	18,450,928
Income tax expense	4,909,985	5,262,531	3,636,508	3,393,126
NET PROFIT FOR THE PERIOD	33,239,299	26,535,925	22,487,834	15,057,802
Earning per share	1.46	1.17	-	-
Net profit/loss attributable to the controlling company	33,286,854	26,616,590	-	-
Net profit/loss attributable to the non-controlling interest holders	-47,555	-80,665	-	-

				in EUR
STATEMENT OF OTHER COMPREHENSIVE INCOME	Triglav Group		Zavarovalnica Triglav
	Q1 2022	Q1 2021	Q1 2022	Q1 2021
Net profit for the period after tax	33,239,299	26,535,925	22,487,834	15,057,802
Other comprehensive income after tax	-66,767,722	-10,307,527	-48,220,251	-10,439,088
Items which will not be transferred in P&L in future periods	0	-33,204	0	-28,045
Actuarial gains/losses for pension plans	0	-33,204	0	-28,045
Items which could be transferred into P&L in future periods	-66,767,722	-10,274,323	-48,220,251	-10,411,043
Fair value gains/losses on available-for-sale financial assets	-93,576,906	-34,040,488	-72,774,458	-34,391,908
– net gains/losses recognized directly in fair value reserve	-99,889,384	-27,371,568	-76,217,809	-28,080,961
– transfers from fair value reserve to income statement	6,312,478	-6,668,920	3,443,351	-6,310,946
Liabilities from insurance contracts with DPF	11,541,802	17,757,356	11,541,802	17,757,356
Currency translation differences	-202,312	-141,874	0	0
Tax on other comprehensive income	15,469,694	6,150,683	13,012,405	6,223,509
COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX	-33,528,423	16,228,398	-25,732,417	4,618,714
Controlling interest	-33,403,309	16,258,731	0	0
Non-controlling interest	-125,115	-30,333	0	0

														in EUR
			Reserves from profit
	Share	Share	Contingency	Legal and	Treasury	Treasury	Other	Fair value	Net	Net	Translation	Total equity	Equity	TOTAL
	capital	premium	reserves	statutory	share	shares	reserves	reserve	profit/loss	profit/loss	differences	attributable	attributable
				reserves	reserves	(deductible	form profit		brought			to the	to non
Triglav Group						item)			forward			controlling	controling
												company	interest
													holders
As at 1 January 2022	73,701,392	50,283,747	640,340	20,306,673	364,680		-364,680 400,686,946		77,834,278 234,588,994	75,439,847		-2,970,993 930,511,224		2,475,645 932,986,869
Comprehensive income for
the period from 1 January	0	0	0	0	0	0		0 -66,484,873	0	33,286,855	-205,288	-33,403,306	-125,116	-33,528,422
2022 to 31 March 2022
a) Net profit	0	0	0	0	0	0	0	0	0	33,286,855	0	33,286,855	-47,555	33,239,300
b) Other comprehensive
income	0	0	0	0	0	0		0 -66,484,873	0	0	-205,288	-66,690,161	-77,561	-66,767,722
Allocation of net profit to
net profit brought forward	0	0	0	0	0	0	0	0		75,439,847 -75,439,847	0	0	0	0
Changes in consolidation	0	20,928	0	0	0	0	0	0	0	0	0	20,928	-56,754	-35,826
area
As at 31 March 2022	73,701,392	50,304,675	640,339	20,306,673	364,680		-364,680 400,686,947		11,349,405 310,028,841	33,286,855		-3,176,281 897,128,846		2,293,775 899,422,621
As at 1 January 2021	73,701,392	50,271,107	640,340	20,266,352	364,680		-364,680 363,200,000		89,293,484 229,284,048	44,131,955		-3,140,104 867,648,574		2,503,373 870,151,947
Comprehensive income for
the period from 1 January	0	0	0	0	0	0		0 -10,217,549	0	26,616,590	-140,312	16,258,731	-30,333	16,228,398
2021 to 31 March 2021
a) Net profit	0	0	0	0	0	0	0	0	0	26,616,590	0	26,616,590	-80,665	26,535,925
b) Other comprehensive
income	0	0	0	0	0	0		0 -10,217,549	0	0	-140,312	-10,357,859	50,332	-10,307,527
Allocation of net profit to	0	0	0	0	0	0	0	0		44,131,957 -44,131,957	0	0	0	0
net profit brought forward
As at 31 March 2021	73,701,392	50,271,107	640,340	20,266,352	364,680		-364,680 363,200,000		79,075,935 273,416,005	26,616,590		-3,280,416 883,907,305		2,473,040 886,380,345

								in EUR
			Reserves form profit
	Share capital	Share	Legal and	Other	Fair value	Net	Net	TOTAL
		premium	statutory	reserves	reserve	profit/loss	profit/loss	EQUITY
Zavarovalnica Triglav			reserves	from profit		brought
						forward
As at 1 January 2022	73,701,392	53,412,884	4,662,643	399,900,000	55,884,634	50,944,831	36,715,549	675,221,933
Comprehensive income for the period from 1 January 2022 to
31 March 2022	0	0	0	0	-48,220,251	0	22,487,834	-25,732,417
a) Net profit	0	0	0	0	0	0	22,487,834	22,487,834
b) Other comprehensive income	0	0	0	0	-48,220,251	0	0	-48,220,251
Allocation of net profit to net profit brought forward	0	0	0	0	0	36,715,549	-36,715,549	0
As at 31 March 2022	73,701,392	53,412,884	4,662,643	399,900,000	7,664,383	87,660,380	22,487,834	649,489,516
As at 1 January 2021	73,701,392	53,412,884	4,662,643	363,200,000	59,402,079	60,526,536	29,097,639	644,003,173
Comprehensive income for the period from 1 January 2021 to
31 March 2021	0	0	0	0	-10,439,088	0	15,057,802	4,618,714
a) Net profit	0	0	0	0	0	0	15,057,802	15,057,802
b) Other comprehensive income	0	0	0	0	-10,439,088	0	0	-10,439,088
Allocation of net profit to net profit brought forward	0	0	0	0	0	29,097,637	-29,097,637	0
As at 31 March 2021	73,701,392	53,412,884	4,662,643	363,200,000	48,962,991	89,624,174	15,057,804	648,621,888

					in EUR
	CASH FLOW STATEMENT	Triglav Group		Zavarovalnica Triglav
		Q1 2022	Q1 2021	Q1 2022	Q1 2021
A.	OPERATING CASH FLOW
	Income statement items	93,856,218	98,500,209	47,316,245	54,584,703
	Net written premium for the period	357,357,194	332,642,800	183,592,188	176,056,136
	Investment income (excluding financial income)	6,458,769	5,999,725	2,300,217	2,086,488
	Other operating income (excluding revaluation and provisions reductions)
	operating revenues and financial income from operating receivables	16,418,229	10,203,112	5,098,018	2,774,475
	Net claims paid	-187,983,449	-162,556,449	-98,399,432	-84,814,028
	Bonuses and rebates paid	-5,409,091	-2,663,279	-4,550,818	-2,199,937
	Net operating expenses excluding depreciation charge and changes in the accrued
	acquisition expenses	-66,803,539	-62,914,035	-29,068,929	-29,846,343
	Investment expenses (excluding depreciation charge and financial expenses)	-3,368,618	-3,352,499	-523,145	-1,530,793
	Other operating expenses excluding depreciation charge (except for revaluations
	and without increasing provisions)	-17,903,291	-13,785,748	-7,160,803	-4,571,010
	Corporate income tax and other taxes excluded from operating expenses	-4,909,986	-5,073,418	-3,971,050	-3,370,285
	Changes in net current assets-operating balance sheet items	-60,445,090	-73,759,444	-29,819,768	-42,057,848
	Movements in receivables from direct insurance operations	-53,026,906	-51,387,564	-41,974,107	-36,873,650
	Movements in receivables from reinsurance operations	-21,562,056	-25,135,474	-7,171,258	-9,883,527
	Movements in other receivables from (re)insurance operations	-12,279,345	-12,675,763	-457,869	-1,363,293
	Movements in other receivables and assets	-6,391,548	-10,536,218	-2,306,973	-7,649,984
	Movements in deferred tax assets	-953,708	-807,324	0	0
	Movements in inventories	-26,219	11,965	-12,109	-8,518
	Movements in debts from direct insurance operations	2,716,926	7,336,964	3,129,821	6,575,015
	Movements in debts from reinsurance operations	24,902,335	17,887,003	14,810,865	6,789,445
	Movements in operating debts	3,446,288	-2,969,226	-1,042,097	-143,840
	Movements in other liabilities (excluding unearned premiums)	7,539,068	4,394,586	5,203,959	500,504
	Movements in deferred tax liabilities	-4,809,925	121,607	0	0
	Net cash from/ (used in) operating activities	33,411,128	24,740,765	17,496,477	12,526,855
B.	CASH FLOWS FROM INVESTING ACTIVITIES				0
	Cash inflows from investing activities	284,515,467	355,979,002	209,815,256	304,218,701
	Cash inflows from interest from investing activities	15,570,876	13,118,880	12,072,739	9,069,130
	Cash inflows from dividends received and profit sharing	343,664	252,597	145,169	134,611
	Cash inflows from the disposal of intangible assets	0	0	0	0
	Cash inflows from the disposal of property, plant and equipment	121,210	580,197	66,066	77,608
	Cash inflows from the disposal of financial investments	268,479,717	342,027,328	197,531,282	294,937,352
	- Cash inflows from the disposal of investments in subsidiaries and associates	0	0	0	0
	- Other cash inflows from disposal of financial investments	268,479,717	342,027,328	197,531,282	294,937,352
	Cash outflows from investing activities	-274,345,925	-350,427,039	-199,483,529	-292,070,430
	Cash outflows for the purchase of intangible assets	-2,422,870	-1,815,181	-2,176,464	-1,289,016
	Cash outflows for the purchase of property, plant and equipment	-5,393,386	-2,157,538	-4,090,395	-971,641
	Cash outflows for the purchase of financial investments	-266,529,669	-346,454,320	-193,216,670	-289,809,773
	- Cash outflows for the purchase of investments in subsidiaries and associates	-35,826	-3,300,000	0	-3,363,500
	- Other cash outflows to acquire financial investments	-266,493,843	-343,154,320	-193,216,670	-286,446,273
	Net cash from/ (used in) investing activities	10,169,542	5,551,963	10,331,727	12,148,271
C.	CASH FLOWS FROM FINANCING ACTIVITIES
	Cash inflows from financing activities	0	0	0	0
	Cash outflows from financing activities	-1,101,773	-1,070,102	-303,655	-288,175
	Cash outflows for paid interest	-130,219	-126,012	-17,825	-15,368
	Cash outflows for payments of long-term financial liabilities	0	-78,255	0	0
	Cash outflows for payments of short-term financial liabilities	-971,554	-865,835	-285,830	-272,807
	Net cash from/ (used in) financing activities	-1,101,773	-1,070,102	-303,655	-288,175
D.	Closing balance of cash and cash equivalents	124,780,869	111,110,785	41,437,540	46,691,174
E1.	Net cash flow for the period	42,478,897	29,222,626	27,524,549	24,386,952
E2.	Foreign exchange differences	-19,658	-11,505	0	0
F.	Opening balance of cash and cash equivalents	82,321,630	81,899,664	13,912,991	22,304,222

2. Selected notes to the financial statements

2.1 Statement of compliance

The Company's separate and consolidated financial statements have been prepared based on the requirements of domestic legislation in accordance with International Financial Reporting Standards as adopted by the European Union (hereinafter: IFRS). Subsidiaries in which the Company holds, directly or indirectly, more than one half of the voting rights are fully consolidated. The financial report for the period from 1 January to 31 March 2022 has been prepared in accordance with IAS 34 – Interim Financial Reporting.

In order to obtain correct information on the financial position and results of the entire Triglav Group, it is necessary to consider the separate financial statements of Zavarovalnica Triglav together with the consolidated financial statements.

The financial statements for the period from 1 January to 31 March 2022 have not been audited.

2.2 Significant accounting policies and estimates and the impact of the war in Ukraine, sanctions against Russia and Belarus and the COVID-19 pandemic

The same accounting policies and calculation methods as for the preparation of the annual financial statements for 2021 were used for the preparation of the financial statements for the period from 1 January to 31 March 2022. In calculating tax expense, the effective tax rate of the previous year was used.

Due to the changes in the economic and financial markets caused by the COVID-19 pandemic, the war in Ukraine and related sanctions imposed against Russia and Belarus, the Group regularly monitors current and potential risks and reliably manages them.The risk profile at the Group level does not deviate significantly compared to the year-end. Adequate liquidity of the parent company is ensured, and the capital adequacy of the Group is assessed as solid. Based on regular monitoring of operations, the going concern assumption can be confirmed.

2.3 Seasonal operations

Operations of Zavarovalnica Triglav are not of a seasonal character. In the first months of the year, gross written premium in non-life insurance was somewhat higher than in the remaining part of the year, as insurance to corporate clients is sold at the beginning of the year (as policies expire at the beginning of the financial year).

2.4 Segmental analysis of the Triglav Group operations

The management monitors the operations of Triglav Group based on the business segments (non-life insurance, life insurance, health insurance, non-insurance operations) and on the geographical segments (separately for Slovenia and other countries). The management uses various indicators to monitor the operations of individual segments, while the common measure of business performance for an individual operating segment is profit before taxes. The consolidated statement of financial position and the consolidated income statement by business segment and geographical area are given below.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION BY							in EUR
SEGMENT				31 March 2022	TOTAL NON		TOTAL
	Non-life	Life	Health	Other	CONSOLIDATED	Eliminations	CONSOLIDATED
ASSETS	2,290,654,002	2,190,651,894	109,464,752	210,493,896	4,801,264,544	-406,209,390	4,395,055,154
Intangible assets	89,381,211	8,099,626	593,943	17,658,616	115,733,396	0	115,733,396
Property, plant and equipment	93,345,291	10,173,121	2,009,402	5,845,533	111,373,347	0	111,373,347
Non-current assets held for sale	197,904	0	0	468,490	666,394	0	666,394
Deferred tax assets	5,764,514	4,890,882	974,030	292,259	11,921,685	0	11,921,685
Investment property	45,934,178	1,761,581	0	23,313,762	71,009,521	4,023,015	75,032,536
Right of use assets	10,440,212	938,852	487,785	3,655,780	15,522,629	-5,353,943	10,168,686
Investments in subsidiaries	126,161,334	13,438,187	7,500	69,860,792	209,467,813	-209,467,813	0
Investments in associates	35,866,261	430,705	0	0	36,296,966	0	36,296,966
Financial assets	1,176,761,153	2,095,645,839	90,857,226	41,428,907	3,404,693,125	-1,444,970	3,403,248,155
Financial investments	1,176,761,153	1,502,212,323	90,857,226	41,428,907	2,811,259,609	-1,444,970	2,809,814,639
- loans and deposits	60,441,943	32,557,440	0	2,006,553	95,005,936	-1,444,970	93,560,966
- held to maturity	0	198,319,832	0	0	198,319,832	0	198,319,832
- available for sale	1,110,071,389	814,516,372	90,857,226	39,422,354	2,054,867,341	0	2,054,867,341
- recognised at fair value through profit and loss	6,247,821	456,818,679	0	0	463,066,500	0	463,066,500
Unit-linked insurance assets	0	593,433,516	0	0	593,433,516	0	593,433,516
Reinsurers' share of technical provisions	325,065,870	6,217,893	3,359,342	0	334,643,105	-119,599,883	215,043,222
Receivables	334,564,868	4,462,131	6,163,922	12,294,008	357,484,929	-74,255,868	283,229,061
- receivables from direct insurance operations - receivables from reinsurance and co-insurance	165,122,814	2,096,708	5,331,140	59,755	172,610,417	-990,714	171,619,703
operations	147,236,635	298,583	260,666	0	147,795,884	-65,443,696	82,352,188
- current tax receivables	886,346	17,721	0	3,316,762	4,220,829	0	4,220,829
- other receivables	21,319,073	2,049,119	572,116	8,917,491	32,857,799	-7,821,458	25,036,341
Other assets	5,319,710	1,086,101	605,192	659,762	7,670,765	-109,928	7,560,837
Cash and cash equivalents	41,851,496	43,506,976	4,406,410	35,015,987	124,780,869	0	124,780,869
EQUITY AND LIABILITIES	2,290,654,002	2,190,651,894	109,464,752	210,493,896	4,801,264,544	-406,209,390	4,395,055,154
Equity	729,926,790	142,953,435	40,998,393	189,836,203	1,103,714,821	-204,292,200	899,422,621
Controlling interests	729,926,790	142,953,435	40,998,393	189,836,203	1,103,714,821	-206,585,975	897,128,846
- share capital	113,689,614	56,243,349	20,822,144	102,351,914	293,107,021	-219,405,629	73,701,392
- share premium	43,511,478	13,658,827	0	21,061,946	78,232,251	-27,927,576	50,304,675
- reserves from profit	369,676,651	47,734,549	1,853,961	7,724,800	426,989,961	-5,356,002	421,633,959
- treasury share reserves	0	0	0	364,680	364,680	0	364,680
- treasury shares	0	0	0	0	0	-364,680	-364,680
- fair value reserve	21,030,986	-24,482,447	-1,540,608	17,280,463	12,288,394	-938,989	11,349,405
- net profit brought forward	166,267,722	44,793,297	17,163,079	34,423,280	262,647,378	47,381,463	310,028,841
- net profit for the year	17,722,864	6,078,061	2,699,817	6,693,541	33,194,283	92,572	33,286,855
- currency translation differences	-1,972,525	-1,072,201	0	-64,421	-3,109,147	-67,134	-3,176,281
Non-controlling interests	0	0	0	0	0	2,293,775	2,293,775
Subordinated liabilities	49,479,600	0	0	0	49,479,600	0	49,479,600
Insurance technical provisions	1,265,316,473	1,417,571,735	54,098,772	0	2,736,986,980	-119,617,792	2,617,369,188
- unearned premiums	498,540,125	500,961	4,230,486	0	503,271,572	-47,256,714	456,014,858
- mathematical provisions	0	1,383,489,857	0	0	1,383,489,857	0	1,383,489,857
- claims provisions	733,796,790	23,222,365	15,431,317	0	772,450,472	-69,291,100	703,159,372
- other insurance technical provisions Insurance technical provisions for unit-linked insurance	32,979,558	10,358,552	34,436,969	0	77,775,079	-3,069,978	74,705,101
contracts	0	602,127,740	0	0	602,127,740	0	602,127,740
Employee benefits	13,565,369	2,310,118	871,249	826,633	17,573,369	0	17,573,369
Other provisions	1,026,205	26,518	183,179	1,215,533	2,451,435	0	2,451,435
Deferred tax liabilities	663,987	-1,904,728	0	4,866,255	3,625,514	-11,645	3,613,869
Other financial liabilities	4,779,410	15,708	0	793,846	5,588,964	-1,490,557	4,098,407
Operating liabilities	142,580,905	11,354,784	6,344,237	500,227	160,780,153	-66,925,237	93,854,916
- liabilities from direct insurance operations - liabilities from reinsurance and co-insurance	9,146,680	10,755,933	5,114,440	0	25,017,053	-1,498,502	23,518,551
operations	131,555,431	591,354	233,759	0	132,380,544	-65,426,735	66,953,809
- current tax liabilities	1,878,794	7,497	996,038	500,227	3,382,556	0	3,382,556
Lease liabilities	10,768,013	883,381	496,584	3,849,254	15,997,232	-5,525,820	10,471,412
Other liabilities	72,547,250	15,313,203	6,472,338	8,605,945	102,938,736	-8,346,139	94,592,597

CONSOLIDATED STATEMENT OF FINANCIAL POSITION BY							in EUR
SEGMENT				31 December 2021	TOTAL NON		TOTAL
	Non-life	Life	Health	Other	CONSOLIDATED	Eliminations	CONSOLIDATED
ASSETS	2,121,657,494	2,293,277,858	106,463,985	207,038,314	4,728,437,651	-354,084,035	4,374,353,616
Intangible assets	80,112,808	8,377,752	663,298	18,030,557	107,184,415	0	107,184,415
Property, plant and equipment	90,588,295	10,233,472	2,062,448	5,770,997	108,655,212	0	108,655,212
Non-current assets held for sale	197,904	0	0	3,614,140	3,812,044	0	3,812,044
Deferred tax assets	110,869	101,004	421,898	293,654	927,425	0	927,425
Investment property	46,340,133	1,773,064	0	22,974,761	71,087,958	4,023,015	75,110,973
Right of use assets	11,276,046	960,258	500,797	2,750,469	15,487,570	-4,554,461	10,933,109
Investments in subsidiaries	126,066,794	13,438,187	0	70,917,798	210,422,779	-210,422,779	0
Investments in associates	35,591,376	439,970	0	0	36,031,346	0	36,031,346
Financial assets	1,213,722,046	2,211,229,231	92,219,328	42,731,707	3,559,902,312	-2,584,674	3,557,317,638
Financial investments	1,213,722,046	1,591,611,743	92,219,328	42,731,707	2,940,284,824	-2,584,674	2,937,700,150
- loans and deposits	67,343,910	31,324,538	0	2,020,763	100,689,211	-2,584,674	98,104,537
- held to maturity	0	157,560,733	0	0	157,560,733	0	157,560,733
- available for sale	1,134,439,152	870,239,658	92,219,328	40,710,944	2,137,609,082	0	2,137,609,082
- recognised at fair value through profit and loss	11,938,984	532,486,814	0	0	544,425,798	0	544,425,798
Unit-linked insurance assets	0	619,617,488	0	0	619,617,488	0	619,617,488
Reinsurers' share of technical provisions	245,721,499	5,789,488	3,140,932	0	254,651,919	-79,812,029	174,839,890
Receivables	250,038,638	4,281,888	5,792,983	12,889,452	273,002,961	-60,626,052	212,376,909
- receivables from direct insurance operations - receivables from reinsurance and co-insurance	110,522,961	1,647,367	5,344,333	61,240	117,575,901	-720,694	116,855,207
operations	114,992,337	196,218	281,728	0	115,470,283	-48,269,351	67,200,932
- current tax receivables	924,396	13,330	0	3,189,658	4,127,384	0	4,127,384
- other receivables	23,598,944	2,424,973	166,922	9,638,554	35,829,393	-11,636,007	24,193,386
Other assets	3,080,138	1,000,430	314,179	555,333	4,950,080	-107,055	4,843,025
Cash and cash equivalents	18,810,948	35,653,114	1,348,122	26,509,446	82,321,630	0	82,321,630
EQUITY AND LIABILITIES	2,121,657,494	2,293,277,858	106,463,985	207,038,314	4,728,437,651	-354,084,035	4,374,353,616
Equity	743,587,952	168,107,999	40,652,405	185,914,932	1,138,263,288	-205,276,419	932,986,869
Controlling interests	743,587,952	168,107,999	40,652,405	185,914,932	1,138,263,288	-207,752,064	930,511,224
- share capital	113,689,614	55,543,349	20,822,144	103,344,414	293,399,521	-219,698,129	73,701,392
- share premium	43,511,478	13,658,827	0	21,061,946	78,232,251	-27,948,504	50,283,747
- reserves from profit	369,676,651	47,734,549	1,853,961	1,598,175	420,863,336	770,623	421,633,959
- treasury share reserves	0	0	0	364,680	364,680	0	364,680
- treasury shares	0	0	0	0	0	-364,680	-364,680
- fair value reserve	52,410,528	6,571,912	813,221	19,058,145	78,853,806	-1,019,528	77,834,278
- net profit brought forward	115,164,702	36,678,335	11,403,820	33,876,580	197,123,437	37,465,557	234,588,994
- net profit for the year	51,103,020	8,814,962	5,759,259	6,673,325	72,350,566	3,089,281	75,439,847
- currency translation differences	-1,968,041	-893,935	0	-62,333	-2,924,309	-46,684	-2,970,993
Non-controlling interests	0	0	0	0	0	2,475,645	2,475,645
Subordinated liabilities	49,471,831	0	0	0	49,471,831	0	49,471,831
Insurance technical provisions	1,130,247,082	1,472,413,320	53,551,980	0	2,656,212,382	-79,843,998	2,576,368,384
- unearned premiums	386,311,527	454,613	3,614,672	0	390,380,812	-20,337,087	370,043,725
- mathematical provisions	0	1,432,613,660	0	0	1,432,613,660	0	1,432,613,660
- claims provisions	711,964,825	23,114,787	16,058,686	0	751,138,298	-56,639,987	694,498,311
- other insurance technical provisions Insurance technical provisions for unit-linked insurance	31,970,730	16,230,260	33,878,622	0	82,079,612	-2,866,924	79,212,688
contracts	0	622,303,399	0	0	622,303,399	0	622,303,399
Employee benefits	13,617,610	2,335,076	872,627	846,820	17,672,133	0	17,672,133
Other provisions	1,053,458	26,518	182,905	1,249,655	2,512,536	0	2,512,536
Deferred tax liabilities	2,186,148	1,914,479	0	5,288,143	9,388,770	-11,736	9,377,034
Other financial liabilities	4,871,905	25,666	0	810,018	5,707,589	-2,621,942	3,085,647
Operating liabilities	98,011,738	8,890,090	6,073,859	27,549	113,003,236	-49,661,578	63,341,658
- liabilities from direct insurance operations	6,949,487	8,165,901	5,518,766	0	20,634,154	-1,183,597	19,450,557
- liabilities from reinsurance and co-insurance
operations	88,834,137	697,681	187,628	0	89,719,446	-48,477,981	41,241,465
- current tax liabilities	2,228,114	26,508	367,465	27,549	2,649,636	0	2,649,636
Lease liabilities	11,606,194	904,600	510,009	2,935,103	15,955,906	-4,681,100	11,274,806
Other liabilities	67,003,576	16,356,711	4,620,200	9,966,094	97,946,581	-11,987,262	85,959,319

					in EUR
STATEMENT OF FINANCIAL POSITION BY GEOGRAPHICAL AREA			31 March 2022
			TOTAL NON		TOTAL
	Slovenia	Other	CONSOLIDATED	Eliminations	CONSOLIDATED
ASSETS	4,256,392,404	544,872,140	4,801,264,544	-406,209,390	4,395,055,154
Intangible assets	93,174,870	22,558,526	115,733,396	0	115,733,396
Property, plant and equipment	73,488,129	37,885,218	111,373,347	0	111,373,347
Non-current assets held for sale	419,358	247,036	666,394	0	666,394
Deferred tax assets	11,197,885	723,800	11,921,685	0	11,921,685
Investment property Right of use assets	65,879,412 8,523,480	5,130,109 6,999,149	71,009,521 15,522,629	4,023,015 -5,353,943	75,032,536 10,168,686
Investments in subsidiaries	203,565,066	5,902,747	209,467,813	-209,467,813	0
Investments in associates	36,296,966	0	36,296,966	0	36,296,966
Financial assets	3,122,511,664	282,181,461	3,404,693,125	-1,444,970	3,403,248,155
Financial investments	2,553,752,863	257,506,746	2,811,259,609	-1,444,970	2,809,814,639
- loans and deposits	43,192,016	51,813,920	95,005,936	-1,444,970	93,560,966
- held to maturity	189,952,792	8,367,040	198,319,832	0	198,319,832
- available for sale	1,869,330,253	185,537,088	2,054,867,341	0	2,054,867,341
- recognised at fair value through profit and loss	451,277,802	11,788,698	463,066,500	0	463,066,500
Unit-linked insurance assets	568,758,801	24,674,715	593,433,516	0	593,433,516
Reinsurers' share of technical provisions	258,316,212	76,326,893	334,643,105	-119,599,883	215,043,222
Receivables	282,743,597	74,741,332	357,484,929	-74,255,868	283,229,061
- receivables from direct insurance operations	121,753,025	50,857,392	172,610,417	-990,714	171,619,703
- receivables from reinsurance and co-insurance operations	135,524,382	12,271,502	147,795,884	-65,443,696	82,352,188
- current tax receivables	3,749,934	470,895	4,220,829	0	4,220,829
- other receivables	21,716,256	11,141,543	32,857,799	-7,821,458	25,036,341
Other assets	3,858,587	3,812,178	7,670,765	-109,928	7,560,837
Cash and cash equivalents	96,417,178	28,363,691	124,780,869	0	124,780,869
EQUITY AND LIABILITIES	4,256,392,404	544,872,140	4,801,264,544	-406,209,390	4,395,055,154
Equity	983,144,701	120,570,120	1,103,714,821	-204,292,200	899,422,621
Controlling interests	983,144,701	120,570,120	1,103,714,821	-206,585,975	897,128,846
- share capital	192,188,418	100,918,603	293,107,021	-219,405,629	73,701,392
- share premium	76,212,455	2,019,796	78,232,251	-27,927,576	50,304,675
- reserves from profit	416,213,472	10,776,489	426,989,961	-5,356,002	421,633,959
- treasury share reserves	364,680	0	364,680	0	364,680
- treasury shares	0	0	0	-364,680	-364,680
- fair value reserve	15,430,811	-3,142,417	12,288,394	-938,989	11,349,405
- net profit brought forward	250,831,151	11,816,227	262,647,378	47,381,463	310,028,841
- net profit for the year	31,903,714	1,290,569	33,194,283	92,572	33,286,855
- currency translation differences	0	-3,109,147	-3,109,147	-67,134	-3,176,281
Non-controlling interests	0	0	0	2,293,775	2,293,775
Subordinated liabilities	49,479,600	0	49,479,600	0	49,479,600
Insurance technical provisions	2,414,053,629	322,933,351	2,736,986,980	-119,617,792	2,617,369,188
- unearned premiums	388,136,676	115,134,896	503,271,572	-47,256,714	456,014,858
- mathematical provisions	1,293,773,966	89,715,891	1,383,489,857	0	1,383,489,857
- claims provisions	657,907,280	114,543,192	772,450,472	-69,291,100	703,159,372
- other insurance technical provisions	74,235,707	3,539,372	77,775,079	-3,069,978	74,705,101
Insurance technical provisions for unit-linked insurance contracts	577,714,775	24,412,965	602,127,740	0	602,127,740
Employee benefits	14,633,259	2,940,110	17,573,369	0	17,573,369
Other provisions	1,596,923	854,512	2,451,435	0	2,451,435
Deferred tax liabilities	2,867,979	757,535	3,625,514	-11,645	3,613,869
Other financial liabilities	4,280,238	1,308,726	5,588,964	-1,490,557	4,098,407
Operating liabilities	116,305,551	44,474,602	160,780,153	-66,925,237	93,854,916
- liabilities from direct insurance operations	21,092,388	3,924,665	25,017,053	-1,498,502	23,518,551
- liabilities from reinsurance and co-insurance operations	91,845,680	40,534,864	132,380,544	-65,426,735	66,953,809
- current tax liabilities	3,367,483	15,073	3,382,556	0	3,382,556
Lease liabilities	8,677,718	7,319,514	15,997,232	-5,525,820	10,471,412
Other liabilities	83,638,032	19,300,705	102,938,737	-8,346,140	94,592,597

STATEMENT OF FINANCIAL POSITION BY GEOGRAPHICAL AREA 31 December 2021 TOTAL NON TOTAL Slovenia Other CONSOLIDATED Eliminations CONSOLIDATED ASSETS 4,209,162,813 519,274,838 4,728,437,651 -354,084,035 4,374,353,616 Intangible assets 87,040,191 20,144,224 107,184,415 0 107,184,415 Property, plant and equipment 70,597,438 38,057,774 108,655,212 0 108,655,212 Non-current assets held for sale 3,564,626 247,418 3,812,044 0 3,812,044 Deferred tax assets 702,993 224,432 927,425 0 927,425 Investment property 65,830,986 5,256,972 71,087,958 4,023,015 75,110,973 Right of use assets 7,819,804 7,667,766 15,487,570 -4,554,461 10,933,109 Investments in subsidiaries 204,614,572 5,808,207 210,422,779 -210,422,779 0 Investments in associates 36,031,346 0 36,031,346 0 36,031,346 Financial assets 3,267,043,376 292,858,936 3,559,902,312 -2,584,674 3,557,317,638 Financial investments 2,674,514,711 265,770,113 2,940,284,824 -2,584,674 2,937,700,150 - loans and deposits 50,234,018 50,455,193 100,689,211 -2,584,674 98,104,537 - held to maturity 149,195,563 8,365,170 157,560,733 0 157,560,733 - available for sale 1,947,934,174 189,674,908 2,137,609,082 0 2,137,609,082 - recognised at fair value through profit and loss 527,150,956 17,274,842 544,425,798 0 544,425,798 Unit-linked insurance assets 592,528,665 27,088,823 619,617,488 0 619,617,488 Reinsurers' share of technical provisions 201,524,459 53,127,460 254,651,919 -79,812,029 174,839,890 Receivables 205,351,678 67,651,283 273,002,961 -60,626,052 212,376,909 - receivables from direct insurance operations 79,378,490 38,197,411 117,575,901 -720,694 116,855,207 - receivables from reinsurance and co-insurance operations 97,809,626 17,660,657 115,470,283 -48,269,351 67,200,932 - current tax receivables 3,733,579 393,805 4,127,384 0 4,127,384 - other receivables 24,429,983 11,399,410 35,829,393 -11,636,007 24,193,386 Other assets 2,136,932 2,813,148 4,950,080 -107,055 4,843,025 Cash and cash equivalents 56,904,412 25,417,218 82,321,630 0 82,321,630 EQUITY AND LIABILITIES 4,209,162,813 519,274,838 4,728,437,651 -354,084,035 4,374,353,616 Equity 1,009,582,130 128,681,158 1,138,263,288 -205,276,419 932,986,869 Controlling interests 1,009,582,130 128,681,158 1,138,263,288 -207,752,064 930,511,224 - share capital 192,180,918 101,218,603 293,399,521 -219,698,129 73,701,392 - share premium 76,212,455 2,019,796 78,232,251 -27,948,504 50,283,747 - reserves from profit 410,086,847 10,776,489 420,863,336 770,623 421,633,959 - treasury share reserves 364,680 0 364,680 0 364,680 - treasury shares 0 0 0 -364,680 -364,680 - fair value reserve 73,779,454 5,074,352 78,853,806 -1,019,528 77,834,278 - net profit brought forward 192,565,348 4,558,089 197,123,437 37,465,557 234,588,994 - net profit for the year 64,392,428 7,958,138 72,350,566 3,089,281 75,439,847 - currency translation differences 0 -2,924,309 -2,924,309 -46,684 -2,970,993 Non-controlling interests 0 0 0 2,475,645 2,475,645 Subordinated liabilities 49,471,831 0 49,471,831 0 49,471,831 Insurance technical provisions 2,354,629,760 301,582,622 2,656,212,382 -79,843,998 2,576,368,384 - unearned premiums 291,969,004 98,411,808 390,380,812 -20,337,087 370,043,725 - mathematical provisions 1,345,183,071 87,430,589 1,432,613,660 0 1,432,613,660 - claims provisions 638,293,195 112,845,103 751,138,298 -56,639,987 694,498,311 - other insurance technical provisions 79,184,490 2,895,122 82,079,612 -2,866,924 79,212,688 Insurance technical provisions for unit-linked insurance contracts 595,544,240 26,759,158 622,303,399 0 622,303,399 Employee benefits 14,696,255 2,975,878 17,672,133 0 17,672,133 Other provisions 1,598,604 913,932 2,512,536 0 2,512,536 Deferred tax liabilities 7,916,794 1,471,976 9,388,770 -11,736 9,377,034 Other financial liabilities 2,873,112 2,834,477 5,707,589 -2,621,942 3,085,647 Operating liabilities 83,749,408 29,253,828 113,003,236 -49,661,578 63,341,658 - liabilities from direct insurance operations 16,753,335 3,880,819 20,634,154 -1,183,597 19,450,557 - liabilities from reinsurance and co-insurance operations 64,585,731 25,133,715 89,719,446 -48,477,981 41,241,465 - current tax liabilities 2,410,342 239,294 2,649,636 0 2,649,636 Lease liabilities 7,976,199 7,979,707 15,955,906 -4,681,100 11,274,806						in EUR
	Other liabilities	81,124,480	16,822,102	97,946,582	-11,987,263	85,959,319

					in EUR
CONSOLIDATED INCOME STATEMENT BY SEGMENT			Q1 2022
	Non-life	Life	Health	Other	TOTAL
NET PREMIUM INCOME	168,342,755	64,619,578	50,574,455	0	283,536,788
- gross written premium	289,757,743	66,141,723	51,169,776	0	407,069,242
- ceded written premium	-71,328,762	-1,475,401	0	0	-72,804,163
- change in unearned premium reserve	-50,086,226	-46,744	-595,321	0	-50,728,291
INCOME FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES	442,813	0	0	0	442,813
- profit on equity investments accounted for using the equity method	442,813	0	0	0	442,813
- other income from investments in subsidiaries and associates	0	0	0	0	0
INCOME FROM INVESTMENTS	3,741,468	10,353,355	135,896	12,008	14,242,727
- interest income calculated using the effective interest method	2,300,053	5,306,502	125,540	8,593	7,740,688
- gains on disposals	173,261	213,682	7,637	1,244	395,824
- other income from investments	1,268,154	4,833,171	2,719	2,171	6,106,215
OTHER INCOME FROM INSURANCE OPERATIONS	15,826,379	541,675	102,407	0	16,470,461
- fees and commission income	13,242,954	536,806	0	0	13,779,760
- other income from insurance operations	2,583,425	4,869	102,407	0	2,690,701
OTHER INCOME	3,742,347	30,028	16,204	15,608,644	19,397,223
NET CLAIMS INCURRED	90,937,537	52,747,722	41,799,025	0	185,484,284
- gross claims settled	102,834,148	53,091,278	40,774,564	0	196,699,990
- reinsurers' share	-7,796,344	-511,365	-1,410	0	-8,309,119
- changes in claims provisions	-4,100,267	167,809	-629,215	0	-4,561,673
- equalisation scheme expenses for supplementary health insurance	0	0	1,655,086	0	1,655,086
CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS (excluding ULI)	340,501	-42,050,891	558,346	0	-41,152,044
CHANGE IN INSURANCE TECHNICAL PROVISIONS FOR UNIT-LINKED INSURANCE CONTRACTS	0	-22,243,317	0	0	-22,243,317
EXPENSES FOR BONUSES AND DISCOUNTS	3,049,730	3,815	0	0	3,053,545
OPERATING EXPENSES	52,675,099	10,594,356	3,796,862	0	67,066,317
- acquisition costs	39,439,520	6,839,916	665,183	0	46,944,619
- other operating costs	13,235,579	3,754,440	3,131,679	0	20,121,698
EXPENSES FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES	167,928	9,266	0	124,560	301,754
- loss on investments accounted for using the equity method	167,928	9,266	0	124,560	301,754
- other expenses from financial assets and liabilities	0	0	0	0	0
EXPENSES FROM INVESTMENTS	5,252,976	67,744,057	949,530	6,858	73,953,421
- loss on impairment of investments	2,985,874	2,305,199	879,856	0	6,170,929
- loss on disposal of investments	813,130	2,891,294	42,765	1	3,747,190
- other expenses from investments	1,453,972	62,547,564	26,909	6,857	64,035,302
OTHER INSURANCE EXPENSES	13,712,155	850,178	184,282	0	14,746,615
OTHER EXPENSES	5,600,696	660,674	4,455	8,464,328	14,730,153
- expenses from financing	601,977	12,314	0	52,785	667,076
- other expenses	4,998,719	648,360	4,455	8,411,543	14,063,077
PROFIT BEFORE TAX	20,359,140	7,228,776	3,536,462	7,024,906	38,149,284
Income tax expense	2,323,776	989,091	628,573	968,545	4,909,985
NET PROFIT FOR THE PERIOD	18,035,364	6,239,685	2,907,889	6,056,361	33,239,299
Net profit/loss attributable to the controlling company	18,086,374	6,237,258	2,907,889	6,055,333	33,286,854
Net profit/loss attributable to the non-controlling interest holders	-51,010	2,427	0	1,028	-47,555

					in EUR
CONSOLIDATED INCOME STATEMENT BY SEGMENT			Q1 2021
	Non-life	Life	Health	Other	TOTAL
NET PREMIUM INCOME	155,997,333	59,676,053	49,040,879	0	264,714,265
- gross written premium	261,217,511	60,767,165	49,707,232	0	371,691,908
- ceded written premium	-60,184,960	-1,044,719	0	0	-61,229,679
- change in unearned premium reserve	-45,035,218	-46,393	-666,353	0	-45,747,964
INCOME FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES	486,845	0	0	93,065	579,910
- profit on equity investments accounted for using the equity method	486,845	0	0	93,065	579,910
- other income from investments in subsidiaries and associates	0	0	0	0	0
INCOME FROM INVESTMENTS	5,175,281	45,984,609	141,131	18,046	51,319,067
- interest income calculated using the effective interest method	2,714,656	5,968,300	141,131	10,193	8,834,280
- gains on disposals	1,027,381	2,687,652	0	92	3,715,125
- other income from investments	1,433,244	37,328,657	0	7,761	38,769,662
OTHER INCOME FROM INSURANCE OPERATIONS	13,205,991	329,025	15,792	0	13,550,808
- fees and commission income	10,812,941	319,003	0	0	11,131,944
- other income from insurance operations	2,393,050	10,022	15,792	0	2,418,864
OTHER INCOME	1,638,614	28,316	19,374	9,041,936	10,728,240
NET CLAIMS INCURRED	84,116,184	49,285,830	37,794,812	0	171,196,826
- gross claims settled	85,986,014	50,035,784	35,277,346	0	171,299,144
- reinsurers' share	-8,033,416	-454,685	-659	0	-8,488,760
- changes in claims provisions	6,163,586	-295,269	1,046,966	0	6,915,283
- equalisation scheme expenses for supplementary health insurance	0	0	1,471,159	0	1,471,159
CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS (excluding ULI)	651,697	-6,125,084	5,227,254	0	-246,133
CHANGE IN INSURANCE TECHNICAL PROVISIONS FOR UNIT-LINKED INSURANCE CONTRACTS	0	39,408,607	0	0	39,408,607
EXPENSES FOR BONUSES AND DISCOUNTS	2,341,995	2,946	0	0	2,344,941
OPERATING EXPENSES	47,598,319	9,871,727	3,282,553	0	60,752,599
- acquisition costs	34,834,048	6,190,388	666,381	0	41,690,817
- other operating costs	12,764,271	3,681,339	2,616,172	0	19,061,782
EXPENSES FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES	52,618	5,849	0	0	58,467
- loss on investments accounted for using the equity method	52,618	5,849	0	0	58,467
- other expenses from financial assets and liabilities	0	0	0	0	0
EXPENSES FROM INVESTMENTS	1,729,946	8,585,116	20,099	9,613	10,344,774
- loss on impairment of investments	0	0	0	0	0
- loss on disposal of investments	503,760	840,771	0	0	1,344,531
- other expenses from investments	1,226,186	7,744,345	20,099	9,613	9,000,243
OTHER INSURANCE EXPENSES	12,349,598	408,976	106,305	0	12,864,879
OTHER EXPENSES	4,323,668	515,944	-13	7,529,275	12,368,874
- expenses from financing	578,551	8,676	0	49,046	636,273
- other expenses	3,745,117	507,268	-13	7,480,229	11,732,601
PROFIT BEFORE TAX	23,340,039	4,058,092	2,786,166	1,614,159	31,798,456
Income tax expense	3,666,569	635,187	492,601	468,174	5,262,531
NET PROFIT FOR THE PERIOD	19,673,470	3,422,905	2,293,565	1,145,985	26,535,925
Net profit/loss attributable to the controlling company	19,754,389	3,423,375	2,293,565	1,145,261	26,616,590
Net profit/loss attributable to the non-controlling interest holders	-80,919	-470	0	724	-80,665

			in EUR
CONSOLIDATED INCOME STATEMENT BY GEOGRAPHICAL AREA		Q1 2022
	Slovenia	Other	TOTAL
NET PREMIUM INCOME	226,031,993	57,504,795	283,536,788
- gross written premium	327,252,336	79,816,906	407,069,242
- ceded written premium	-58,443,227	-14,360,936	-72,804,163
- change in unearned premium reserve	-42,777,116	-7,951,175	-50,728,291
INCOME FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES	442,813	0	442,813
- profit on equity investments accounted for using the equity method	442,813	0	442,813
- other income from investments in subsidiaries and associates	0	0	0
INCOME FROM INVESTMENTS	12,025,732	2,216,995	14,242,727
- interest income calculated using the effective interest method	6,278,998	1,461,690	7,740,688
- gains on disposals	384,946	10,878	395,824
- other income from investments	5,361,788	744,427	6,106,215
OTHER INCOME FROM INSURANCE OPERATIONS	13,993,713	2,476,748	16,470,461
- fees and commission income	12,185,037	1,594,723	13,779,760
- other income from insurance operations	1,808,676	882,025	2,690,701
OTHER INCOME	17,644,942	1,752,281	19,397,223
NET CLAIMS INCURRED	158,288,566	27,195,718	185,484,284
- gross claims settled	165,641,396	31,058,594	196,699,990
- reinsurers' share	-5,664,223	-2,644,896	-8,309,119
- changes in claims provisions	-3,343,693	-1,217,980	-4,561,673
- equalisation scheme expenses for supplementary health insurance	1,655,086	0	1,655,086
CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS (excluding ULI)	-43,460,026	2,307,982	-41,152,044
CHANGE IN INSURANCE TECHNICAL PROVISIONS FOR UNIT-LINKED INSURANCE CONTRACTS	-20,104,222	-2,139,095	-22,243,317
EXPENSES FOR BONUSES AND DISCOUNTS	2,270,443	783,102	3,053,545
OPERATING EXPENSES	46,094,352	20,971,965	67,066,317
- acquisition costs	30,862,080	16,082,539	46,944,619
- other operating costs	15,232,272	4,889,426	20,121,698
EXPENSES FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES	301,754	0	301,754
- loss on investments accounted for using the equity method	301,754	0	301,754
- other expenses from financial assets and liabilities	0	0	0
EXPENSES FROM INVESTMENTS	71,293,224	2,660,197	73,953,421
- loss on impairment of investments	6,170,929	0	6,170,929
- loss on disposal of investments	3,744,801	2,389	3,747,190
- other expenses from investments	61,377,494	2,657,808	64,035,302
OTHER INSURANCE EXPENSES	13,024,909	1,721,706	14,746,615
OTHER EXPENSES	11,858,080	2,872,073	14,730,153
- expenses from financing	574,393	92,683	667,076
- other expenses	11,283,687	2,779,390	14,063,077
PROFIT BEFORE TAX	30,572,113	7,577,171	38,149,284
Income tax expense	4,831,611	78,374	4,909,985
NET PROFIT FOR THE PERIOD	25,740,502	7,498,797	33,239,299
Net profit/loss attributable to the controlling company	25,740,502	7,546,352	33,286,854
Net profit/loss attributable to the non-controlling interest holders	0	-47,555	-47,555

			in EUR
CONSOLIDATED INCOME STATEMENT BY GEOGRAPHICAL AREA		Q1 2021
	Slovenia	Other	TOTAL
NET PREMIUM INCOME	211,574,844	53,139,421	264,714,265
- gross written premium	300,791,609	70,900,299	371,691,908
- ceded written premium	-48,740,022	-12,489,657	-61,229,679
- change in unearned premium reserve	-40,476,743	-5,271,221	-45,747,964
INCOME FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES	579,910	0	579,910
- profit on equity investments accounted for using the equity method	579,910	0	579,910
- other income from investments in subsidiaries and associates	0	0	0
INCOME FROM INVESTMENTS	48,802,559	2,516,508	51,319,067
- interest income calculated using the effective interest method	7,259,082	1,575,198	8,834,280
- gains on disposals	3,651,339	63,786	3,715,125
- other income from investments	37,892,138	877,524	38,769,662
OTHER INCOME FROM INSURANCE OPERATIONS	11,433,916	2,116,892	13,550,808
- fees and commission income	9,668,003	1,463,941	11,131,944
- other income from insurance operations	1,765,913	652,951	2,418,864
OTHER INCOME	9,097,246	1,630,994	10,728,240
NET CLAIMS INCURRED	142,483,876	28,712,950	171,196,826
- gross claims settled	144,293,538	27,005,606	171,299,144
- reinsurers' share	-7,288,972	-1,199,788	-8,488,760
- changes in claims provisions	4,008,151	2,907,132	6,915,283
- equalisation scheme expenses for supplementary health insurance	1,471,159	0	1,471,159
CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS (excluding ULI)	-1,600,306	1,354,173	-246,133
CHANGE IN INSURANCE TECHNICAL PROVISIONS FOR UNIT-LINKED INSURANCE CONTRACTS	38,631,740	776,867	39,408,607
EXPENSES FOR BONUSES AND DISCOUNTS	2,200,216	144,725	2,344,941
OPERATING EXPENSES	42,352,635	18,399,964	60,752,599
- acquisition costs	27,977,732	13,713,085	41,690,817
- other operating costs	14,374,903	4,686,879	19,061,782
EXPENSES FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES	58,467	0	58,467
- loss on investments accounted for using the equity method	58,467	0	58,467
- other expenses from financial assets and liabilities	0	0	0
EXPENSES FROM INVESTMENTS	10,144,102	200,672	10,344,774
- loss on impairment of investments	0	0	0
- loss on disposal of investments	1,344,531	0	1,344,531
- other expenses from investments	8,799,571	200,672	9,000,243
OTHER INSURANCE EXPENSES	10,815,008	2,049,871	12,864,879
OTHER EXPENSES	9,540,477	2,828,397	12,368,874
- expenses from financing	563,487	72,786	636,273
- other expenses	8,976,990	2,755,611	11,732,601
PROFIT BEFORE TAX	26,862,260	4,936,196	31,798,456
Income tax expense	5,169,150	93,381	5,262,531
NET PROFIT FOR THE PERIOD	21,693,110	4,842,815	26,535,925
Net profit/loss attributable to the controlling company	21,693,110	4,923,480	26,616,590
Net profit/loss attributable to the non-controlling interest holders	0	-80,665	-80,665

2.5 Segmental analysis of Zavarovalnica Triglav's operations

In accordance with the requirements of the Decision on annual reports and quarterly financial statements of insurance undertakings (Official Gazette of the Republic of Slovenia, No. 1/16), the Company's operations are described by specific business segments.

						in EUR
STATEMENT OF FINANCIAL POSITION		31 March 2022			31 December 2021
	Non-life	Life	TOTAL	Non-life	Life	TOTAL
ASSETS	1,509,193,928	1,622,781,326	3,131,975,254	1,425,009,986	1,704,592,224	3,129,602,210
Intangible assets	65,677,943	7,960,397	73,638,340	58,793,824	8,228,203	67,022,027
Property, plant and equipment	59,905,497	8,075,831	67,981,328	57,022,314	8,120,993	65,143,307
Deferred tax assets	4,234,393	4,463,055	8,697,448	0	0	0
Investment property	42,710,415	815,238	43,525,653	43,019,770	820,285	43,840,055
Right of use assets	4,266,265	0	4,266,265	4,548,298	0	4,548,298
Investments in subsidiaries	120,444,672	11,480,011	131,924,683	120,444,672	11,480,011	131,924,683
Investments in associates	41,693,997	0	41,693,997	41,693,997	0	41,693,997
- accounted for using the equity method	0	0	0	0	0
- measured at fair value	41,693,997	0	41,693,997	41,693,997	0	41,693,997
Financial investments	810,564,412	1,057,181,634	1,867,746,046	841,558,081	1,127,121,898	1,968,679,979
- loans and deposits	18,854,388	7,125,138	25,979,526	25,488,933	7,032,590	32,521,523
- held to maturity	0	131,490,581	131,490,581	0	140,946,233	140,946,233
- available for sale	791,621,344	723,514,945	1,515,136,289	816,048,831	772,341,432	1,588,390,263
- recognised at fair value through profit and loss	88,680	195,050,970	195,139,650	20,317	206,801,643	206,821,960
Unit-linked insurance assets	0	515,264,129	515,264,129	0	539,417,972	539,417,972
Reinsurers' share of technical provisions	170,162,235	32,003	170,194,238	135,986,397	91,560	136,077,957
Receivables	161,128,870	1,814,840	162,943,710	113,944,682	1,883,002	115,827,684
- receivables from direct insurance operations	115,223,821	266,859	115,490,680	73,285,008	231,566	73,516,574
- receivables from reinsurance and co-insurance
operations	31,151,286	179	31,151,465	23,516,494	5,846	23,522,340
- current tax receivables	436,908	0	436,908	564,166	0	564,166
- other receivables	14,316,855	1,547,802	15,864,657	16,579,014	1,645,590	18,224,604
Other assets	2,634,044	27,833	2,661,877	1,463,755	49,505	1,513,260
Cash and cash equivalents	25,771,185	15,666,355	41,437,540	6,534,196	7,378,795	13,912,991
EQUITY AND LIABILITIES	1,509,193,928	1,622,781,326	3,131,975,254	1,425,009,986	1,704,592,224	3,129,602,210
Equity	570,982,702	78,506,816	649,489,518	577,396,816	97,825,117	675,221,933
Controlling interests	570,982,702	78,506,816	649,489,518	577,396,816	97,825,117	675,221,933
- share capital	51,340,540	22,360,852	73,701,392	51,340,540	22,360,852	73,701,392
- share premium	40,344,978	13,067,907	53,412,885	40,344,978	13,067,907	53,412,884
- reserves from profit	359,048,752	45,513,891	404,562,643	359,048,752	45,513,891	404,562,643
- fair value reserve	30,236,222	-22,571,839	7,664,383	52,861,390	3,023,244	55,884,634
- net profit brought forward	73,801,158	13,859,223	87,660,381	43,310,026	7,634,805	50,944,831
- net profit for the year	16,211,052	6,276,782	22,487,834	30,491,131	6,224,418	36,715,549
Subordinated liabilities	49,479,600	0	49,479,600	49,471,831	0	49,471,831
Insurance technical provisions	766,394,744	1,005,656,494	1,772,051,238	696,332,340	1,044,040,846	1,740,373,186
- unearned premiums	306,211,856	437,430	306,649,286	245,629,454	388,396	246,017,850
- mathematical provisions	0	976,207,445	976,207,445	0	1,008,319,155	1,008,319,155
- claims provisions	434,377,516	21,501,894	455,879,410	425,072,536	21,494,719	446,567,255
- other insurance technical provisions	25,805,372	7,509,725	33,315,097	25,630,350	13,838,576	39,468,926
Insurance technical provisions for unit-linked
insurance contracts Employee benefits	0 10,727,283	519,960,493 2,072,142	519,960,493 12,799,425	0 10,763,216	540,135,052 2,079,089	540,135,052 12,842,305
Other provisions	342,608	16,714	359,322	342,266	16,714	358,980
Deferred tax liabilities	0	0	0	973,178	3,239,555	4,212,733
Other financial liabilities Operating liabilities	3,300,754 45,874,569	0 6,927,668	3,300,754 52,802,237	1,690,586 28,724,774	0 6,136,780	1,690,586 34,861,554
- liabilities from direct insurance operations	6,225,470	7,087,294	13,312,764	4,053,234	6,129,711	10,182,945
- liabilities from reinsurance and co-insurance
operations	39,649,099	-159,626	39,489,473	24,671,540	7,069	24,678,609
- current tax liabilities Lease liabilities	0 4,356,316	0 0	0 4,356,316	0 4,643,844	0 0	0 4,643,844

						in EUR
INCOME STATEMENT		Q1 2022			Q1 2021
	Non-life	Life	TOTAL	Non-life	Life	TOTAL
NET PREMIUM INCOME	100,699,120	49,893,713	150,592,834	93,797,093	47,528,666	141,325,759
- gross written premium	194,689,804	50,184,353	244,874,157	178,329,884	47,803,506	226,133,390
- ceded written premium	-61,040,399	-241,569	-61,281,968	-49,848,205	-229,049	-50,077,254
- change in unearned premium reserve	-32,950,285	-49,071	-32,999,355	-34,684,586	-45,791	-34,730,377
INCOME FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES	15,240	0	15,240	63,190	0	63,190
- profit on equity investments accounted for using the equity method	0	0	0	0	0	0
- other income from investments in subsidiaries and associates	15,240	0	15,240	63,190	0	63,190
INCOME FROM INVESTMENTS	1,231,835	5,405,223	6,637,059	2,348,064	35,724,759	38,072,823
- interest income calculated using the effective interest method	857,430	3,556,284	4,413,713	1,197,933	3,842,420	5,040,353
- gains on disposals	28,784	195,157	223,941	785,642	2,534,798	3,320,440
- other income from investments	345,622	1,653,783	1,999,404	364,489	29,347,541	29,712,030
OTHER INCOME FROM INSURANCE OPERATIONS	13,500,893	1,589,822	15,090,715	10,051,647	1,147,221	11,198,868
- fees and commission income
	11,603,660	1,589,788	13,193,448	8,472,526	1,147,220	9,619,746
- other income from insurance operations	1,897,233	34	1,897,268	1,579,121	1	1,579,122
OTHER INCOME	3,909,852	245,743	4,155,594	1,898,639	208,606	2,107,245
NET CLAIMS INCURRED	51,347,022	43,049,537	94,396,559	49,448,937	40,584,475	90,033,412
- gross claims settled	62,088,105	43,185,728	105,273,833	52,375,753	40,926,735	93,302,488
- reinsurers' share	-6,671,511	-202,887	-6,874,398	-8,418,111	-70,350	-8,488,461
- changes in claims provisions	-4,069,572	66,696	-4,002,876	5,491,295	-271,910	5,219,385
CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS (excluding ULI)	170,509	-24,633,556	-24,463,047	249,668	-5,375,101	-5,125,433
CHANGE IN INSURANCE TECHNICAL PROVISIONS FOR UNIT-LINKED
INSURANCE CONTRACTS	0	-22,449,315	-22,449,315	0	32,247,485	32,247,485
EXPENSES FOR BONUSES AND DISCOUNTS	2,275,409	0	2,275,409	2,199,937	0	2,199,937
OPERATING EXPENSES	33,190,892	8,999,756	42,190,648	30,367,103	8,589,906	38,957,009
- acquisition costs
- other operating costs	24,597,463	6,388,389	30,985,852	21,961,678	6,045,990	28,007,668
	8,593,429	2,611,367	11,204,796	8,405,425	2,543,916	10,949,341
EXPENSES FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES	34,348	0	34,348	1,441	0	1,441
- loss on investments accounted for using the equity method	0	0	0	0	0	0
- other expenses from financial assets and liabilities
	34,348	0	34,348	1,441	0	1,441
EXPENSES FROM INVESTMENTS	2,651,039	44,132,429	46,783,468	1,508,502	4,387,319	5,895,821
- loss on impairment of investments
	870,010	2,305,199	3,175,209	0	0	0
- loss on disposal of investments	585,273	2,676,269	3,261,542	499,665	767,779	1,267,444
- other expenses from investments	1,195,757	39,150,961	40,346,717	1,008,837	3,619,540	4,628,377
OTHER INSURANCE EXPENSES	5,821,545	138,927	5,960,471	5,259,536	467,448	5,726,984
OTHER EXPENSES	5,003,710	634,849	5,638,559	3,891,157	489,143	4,380,300
- expenses from financing	557,680	0	557,680	563,441	0	563,441
- other expenses	4,446,030	634,849	5,080,879	3,327,716	489,143	3,816,859
PROFIT BEFORE TAX	18,862,466	7,261,876	26,124,342	15,232,351	3,218,577	18,450,928
Income tax expense	2,651,414	985,094	3,636,508	2,776,059	617,067	3,393,126
NET PROFIT FOR THE PERIOD	16,211,052	6,276,782	22,487,834	12,456,292	2,601,510	15,057,802

2.6 Significant items of the statement of financial position

Intangible assets

In the reporting period, the book value of intangible assets of the Triglav Group increased by EUR 8.5 million. Long-term deferred acquisition costs have increased by EUR 9.1 million, while new purchases of licences and software equalled EUR 2.5 million. In the first quarter of 2022 amortisation reached EUR 3.1 million.

In the reporting period, the book value of intangible assets of Zavarovalnica Triglav increased by EUR 6.6 million. In the separate financial statements, the change mainly refers to the increase in long-term deferred acquisition costs. These have increased by EUR 6.8 million. New purchases of other intangible assets in the amount of EUR 2.2 million primarily relate to the purchase of licences and software. In the first quarter of 2022 amortisation of intangible assets of Zavarovalnica Triglav amounted to EUR 2.4 million.

Property, plant and equipment

In the first quarter of 2022 the book value of property, plant and equipment of the Triglav Group increased by EUR 2.7 million. In the first quarter of 2022 Triglav Group acquired new property, plant and equipment worth EUR 5.3 million and sold it in the carrying amount of EUR 379 thousand. In the reporting period, depreciation of property, plant and equipment amounted to EUR 2.1 million.

In the reporting period, the book value of property, plant and equipment of Zavarovalnica Triglav increased by EUR 2.8 million. In the first quarter of 2022 Zavarovalnica Triglav acquired new property, plant and equipment worth EUR 4.1 million and sold it in the carrying amount of EUR 66 thousand. In the reporting period, depreciation of property, plant and equipment amounted to EUR 1.2 million.

Investment property

The book value of investment property of the Group decreased by EUR 78 thousand. In the reporting period, the Group purchased investment property in the amount of EUR 462 thousand and sold it in the carrying amount of EUR 96 thousand. In the first quarter of 2022, depreciation of investment property of the Group amounted to EUR 345 thousand.

In the first quarter of 2022 the book value of investment property of Zavarovalnica Triglav decreased by EUR 314 thousand. Zavarovalnica Triglav purchased new investment property worth EUR 18 thousand and sold it in the carrying amount of EUR 90 thousand. In the reporting period, depreciation of investment property amounted to EUR 242 thousand.

The carrying amount of real property recognised as non-current assets held for sale decreased by EUR 3.1 million as a result of the sale.

Financial investments

The tables below show the carrying and fair values of financial assets, excluding unit-linked insurance assets.

				in EUR
Triglav Group	Carrying amount		Fair value
	31 March 2022	31 December 2021	31 March 2022	31 December 2021
Loans and deposits	93,560,966	98,104,537	94,250,234	99,906,383
Held to maturity	198,319,832	157,560,733	222,412,403	191,798,392
Available for sale	2,054,867,341	2,137,609,082	2,054,867,341	2,137,609,082
Investments recognised at fair value	463,066,500	544,425,798	463,066,500	544,425,798
TOTAL	2,809,814,639	2,937,700,150	2,834,596,478	2,973,739,655

				in EUR
Zavarovalnica Triglav	Carrying amount		Fair value
	31 March 2022	31 December 2021	31 March 2022	31 December 2021
Loans and deposits	25,979,526	32,521,523	25,657,214	32,135,431
Held to maturity	131,490,581	140,946,233	155,842,091	173,901,172
Available for sale	1,515,136,289	1,588,390,263	1,515,136,289	1,588,390,263
Investments recognised at fair value	195,139,650	206,821,960	195,139,650	206,821,960
TOTAL	1,867,746,046	1,968,679,979	1,891,775,245	2,001,248,826

Tables below show financial investments of Zavarovalnica Triglav and Triglav Group by different groups of financial assets.

Triglav Group

					in EUR
Values as at 31 March 2022	L&R	HTM	AFS	FVTPL	Total
Equity instruments	0	0	210,453,522	95,159,637	305,613,159
Debt instruments	6,028,608	198,319,832	1,842,840,206	367,818,183	2,415,006,829
Derivative financial instruments	0	0	0	88,680	88,680
Loans	87,532,358	0	1,573,613	0	89,105,971
Total	93,560,966	198,319,832	2,054,867,341	463,066,500	2,809,814,639

	in EUR
Values as at 31 December 2021	L&R	HTM	AFS	FVTPL	Total
Equity instruments	0	0	218,347,257	112,613,404	330,960,661
Debt instruments	5,991,639	157,560,733	1,917,552,252	431,465,194	2,512,569,818
Derivative financial instruments	0	0	0	20,317	20,317
Loans	92,112,898	0	1,709,573	326,883	94,149,354
Total	98,104,537	157,560,733	2,137,609,082	544,425,798	2,937,700,150

Zavarovalnica Triglav

					in EUR
Values as at 31 March 2022	L&R	HTM	AFS	FVTPL	Total
Equity instruments	0	0	167,031,758	30,375,942	197,407,700
Debt instruments	6,028,608	131,490,581	1,346,530,918	164,675,028	1,648,725,135
Derivative financial instruments	0	0	0	88,680	88,680
Loans	19,950,918	0	1,573,613	0	21,524,531
Total	25,979,526	131,490,581	1,515,136,289	195,139,650	1,867,746,046

					in EUR
Values as at 31 December 2021	L&R	HTM	AFS	FVTPL	Total
Equity instruments	0	0	172,377,789	31,631,419	204,009,208
Debt instruments	5,991,639	140,946,233	1,414,431,597	175,170,224	1,736,539,694
Derivative financial instruments	0	0	0	20,317	20,317
Loans	26,529,884	0	1,580,876	0	28,110,760
Total	32,521,523	140,946,233	1,588,390,263	206,821,960	1,968,679,979

Legend:

• L&R: Loans and receivables
• HTM: Held to maturity
• AFS: Available for sale
• FVTPL: Fair value through profit or loss

Unit – linked financial assets

Unit-linked insurance assets are presented below according to their distribution into individual groups.

				in EUR
	Triglav Group		Zavarovalnica Triglav
	31 March 2022	31 December 2021	31 March 2022	31 December 2021
Equity instruments	574,341,545	594,267,074	510,743,558	529,598,379
Debt instruments	19,091,971	25,350,414	4,520,571	9,819,593
TOTAL	593,433,516	619,617,488	515,264,129	539,417,972

All unit-linked insurance assets are classified in the group of financial assets measured at fair value through profit or loss. Their carrying amounts are equal to their fair values.

Fair value measurement and presentation by valuation level

Financial assets measured at fair value are classified by valuation level in the tables below:

• Level 1: value measurement based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date (stock exchange quotations and listings provided by third parties), which are entirely based on observable market data (the share of binding listings has to be minimum 90% and there have to be at least three binding listings not older than one day);
• Level 2: value measurement less than entirely based on quoted prices for the asset or liability. Fair value measurements may be based on indirectly observable inputs, i.e. data derived from prices of comparable financial instruments, but only up to a strictly limited percentage;
• Level 3: value measurement based on prices that do not meet the standards for Level 1 or Level 2. The percentage of unobservable inputs used in value measurement models is considerable.

The following is shown separately for the Triglav Group:

• financial assets (i.e. available-for-sale financial assets and financial assets at fair value through profit and loss) and
• unit-linked insurance assets.

Capital investments in associates and joint ventures are additionally shown for Zavarovalnica Triglav because they are measured at fair value in stand-alone financial statements. Investments in associates and joint ventures are accounted for using the equity method in the consolidated financial statements and are therefore not included in the presentation of valuation of financial assets at fair value.

Triglav Group

				in EUR
As at 31 March 2022	Level 1	Level 2	Level 3	Total
Equity securities	210,084,035	0	97,102,737	307,186,772
Debt securities	603,932,571	1,606,716,928	8,890	2,210,658,389
Derivative financial instruments	0	88,680	0	88,680
Unit-linked financial assets	577,831,620	15,278,232	323,664	593,433,516
Total	1,391,848,226	1,622,083,840	97,435,291	3,111,367,357

				in EUR
As at 31 December 2021	Level 1	Level 2	Level 3	Total
Equity securities	240,531,858	0	92,456,375	332,988,233
Debt securities	479,980,327	1,869,037,119	8,884	2,349,026,330
Derivative financial instruments	0	20,317	0	20,317
Unit-linked financial assets	598,678,211	20,635,943	303,334	619,617,488
Total	1,319,190,396	1,889,693,379	92,768,593	3,301,652,368

Zavarovalnica Triglav

				in EUR
As at 31 March 2022	Level 1	Level 2	Level 3	Total
Equity securities	110,060,223	0	88,921,090	198,981,313
Debt securities	456,614,004	1,054,591,942	0	1,511,205,946
Derivative financial instruments	0	88,680	0	88,680
Unit-linked financial assets	511,332,352	3,931,777	0	515,264,129
Investments in associates	0	0	41,693,997	41,693,997
Total	1,078,006,579	1,058,612,399	130,615,087	2,267,234,065

	in EUR
As at 31 December 2021	Level 1		Level 3	Total
Equity securities	120,508,156	0	85,081,928	205,590,084
Debt securities	356,825,433	1,232,776,388	0	1,589,601,822
Derivative financial instruments	0	20,317	0	20,317
Unit-linked financial assets	530,759,767	8,658,205	0	539,417,972
Investments in associates	0	0	41,693,996	41,693,996
Total	1,008,093,356	1,241,454,910	126,775,924	2,376,324,191

Financial investment type	Value assessment method	Material parameters	Parameter weight applied	Fair value
EXTERNAL APPRAISERS (market operator)
Debt securities - composite	Stochastic model, HW1f and HW2f network models	EUR SWAP interest rate curve, issuer credit spreads, comparable issuer credit spreads, interest rate volatility, correlation matrix, volatility indices		Level 2
Debt securities– compound with exposure to stock markets	Stochastic model	EUR SWAP interest rate curve, issuer credit spreads, comparable issuer credit spreads, interest rate volatility, volatility indices		Level 2
Derivatives	Black-Scholes model	Index volatility		Level 2
BLOOMBERG BVAL
Debt securities – companies, financial institutions and government	Cash flow discounting according to amortisation schedule	EUR SWAP interest rate curve, issuer credit spreads, comparable issuer credit spreads, indicative listings		Level 2
INTERNAL APPRAISERS
Debt securities - government	Cash flow discounting according to amortisation schedule	Republic of Slovenia interest rate yield curve	yield curve issued by Republic of Slovenia (Bloomberg ID: I259 Currency); credit spread between 0% and 0.88%	Level 2
Debt securities - companies and financial institutions	Cash flow discounting according to amortisation schedule	Republic of Slovenia interest rate yield curve, issuer credit spreads	yield curve issued by Republic of Slovenia (Bloomberg ID: I259 Currency); credit spread between 1.71% and 4.49%	Level 2
	Cash flow discounting	g (growth rate during constant growth period)	2.0%
		EBIT margin (constant growth period)	16.1% - 36.11%
Equity securities		Discount rate	9.29% - 11.18%	Level 3
		Lack of marketability discount	6.5% - 18%
	NAV method	Real property price changes
	Market approach	MVIC/EBITDA
Equity investment in associates	Equity method	Accumulated gains and losses		Level 3
Real property for own use Investment property	Income approach, market approach, land residual method (analysis of the most economical use of development	Capitalisation rate, market prices of comparable real property	7.5% - 15% depending on risk/location Market values based on information available	Level 3

Value assessment techniques and inputs used for measurement purposes

land)

Changes of Level 3 financial assets

				in EUR
	Triglav Group		Zavarovalnica Triglav
	2022	2021	2022	2021
Opening balance as at 1 January	92,768,593	71,939,935	126,775,924	97,319,449
Purchases	3,029,190	4,150,829	2,265,437	7,090,671
Disposals	-600,359	-1,210,841	-600,359	-1,198,204
Revaluations through income statement	69,368	7,026	2,908	14,569
Revaluations through Equity	2,171,177	1,178,702	2,171,177	1,180,003
Exchange rate difference	-2,678	-963	0	0
Closing balance as at 31 March	97,435,291	76,064,688	130,615,087	104,406,487

The value of the Triglav Group's financial assets classified into Level 3 increased in the first three months of 2022 as a result of the payments into venture capital funds. Disposals relate entirely to payouts from these funds. Even revaluation is the result of changes in the value of venture capital funds.

Subordinated debt instruments

Zavarovalnica Triglav has one issued subordinate bond, which is included in its capital adequacy. The bond was issued in 2019 as part of the Group's regular capital management to ensure its optimal composition and cost efficiency and to replace the bond that matured on 21 March 2020. The Company did not issue any new debt securities in the period from 1 January to 31 March 2022. The same applies to other Group members.

Contingent liabilities

In the first three months, there were no significant changes in the contingent liabilities of the Triglav Group and Zavarovalnica Triglav.

Distribution of accumulated profits

Accumulated profit as at 31 December 2021 amounted to EUR 87,660,380. The Management Board and the Supervisory Board of Zavarovalnica Triglav propose to the General Meeting of Shareholders that part of accumulated profit of EUR 84,120,048 be distributed for dividend payment. The remaining accumulated profit in the amount of EUR 3,540,332 will remain undistributed and will be decided on in the coming years. The final decision on the proposed distribution of accumulated profit as at 31 December 2021 will be made by the General Meeting of Shareholders of Zavarovalnica Triglav on 24 May 2022.

2.7 Changes in equity stakes in subsidiaries and business combinations

Purchase of shares of Triglav Osiguruvanje a.d., Skopje from non-controlling interest holders

In the first three months of 2022, Triglav INT d.d., Ljubljana acquired a 0.36% participating interest in Triglav Osiguruvanje a.d., Skopje from non-controlling interest holders, thereby becoming its 81.69% owner. The consideration totalled MAK 2.2 million or EUR 36 thousand. The effect of the acquisition of the non-controlling interest was recognised in the consolidated financial statements as an increase in share premium of EUR 21 thousand.

Transfer of the participating interest in Triglav Savetovanje d.o.o., Belgrade

Triglav svetovanje d.o.o., Domžale sold its 51% participating interest in Triglav Savetovanje d.o.o., Belgrade to Triglav Osiguranje d.d., Belgrade. As a result, Triglav Osiguranje d.d., Belgrade became a 100% owner of Triglav Savetovanje d.o.o., Belgrade. This transaction did not have an impact on the Group's consolidated financial statements.

Establishment of Triglav zdravje asistenca, družba za zdravstveno dejavnost d.o.o.

In the first quarter of 2022, Triglav, Zdravstvena zavarovalnica d.d. established the subsidiary Triglav zdravje asistenca, družba za zdravstveno dejavnost d.o.o., in which it holds a 100% participating interest. The new company is included in the Triglav Group's consolidated financial statements under the full consolidation method.

2.8 Related party transactions

Revenues of the Management and Supervisory Board

In the first quarter of 2022 the Management Board members were paid the following amounts as compensation for their work:

First and last name	Fixed remuneration – gross (1)*	Variable remuneration (bonuses) – gross (2)	Total gross (3=1+2)	Total remuneration – net (4)	Insurance premium – benefits and SVPI (5)**	Other benefits (6)***	in EUR Total benefits and SVPI (7=5+6)
Andrej Slapar	51,285	0	51,285	14,953	17,667	2,361	20,028
Uroš Ivanc	48,721	0	48,721	15,232	12,858	234	13,092
Tadej Čoroli	48,721	0	48,721	14,905	12,858	1,266	14,124
Barbara Smolnikar	48,395	0	48,395	14,495	12,825	1,265	14,090
David Benedek	48,721	0	48,721	14,932	12,858	1,767	14,625
Marica Makoter	48,721	0	48,721	14,619	12,858	1,237	14,095
TOTAL	294,564	0	294,564	89,136	81,924	8,130	90,054

* Fixed remuneration includes salary, holiday pay and jubilee benefits.

** Insurance premiums include premiums for supplementary pension insurance, accident insurance, liability insurance and other types of insurance.

*** Other benefits include company cars.

The disclosure does not include travel expenses, accommodation costs and daily allowance as, by their nature, they are not considered remuneration of the Management Board. In the reporting period members of the Management Board did not receive any payments for their work in subsidiaries.

	in EUR
	Liabilities as at 31 March 2022
First and last name	Deferred variable remuneration (bonuses) – gross (1)	Fixed remuneration (salary) – gross and reimbursement (2)	Total liabilities (3=1+2)
Andrej Slapar	119,080	17,613	136,693
Uroš Ivanc	113,126	16,722	129,848
Tadej Čoroli	113,126	16,697	129,823
Barbara Smolnikar	113,126	16,415	129,541
David Benedek	91,089	16,722	107,811
Marica Makoter	113,126	16,722	129,848
TOTAL	662,673	100,891	763,564

As at 31 March 2022 Zavarovalnica Triglav, d.d. had the following liabilities to the Management Board members:

The Company's receivables from the Management Board members relate exclusively to receivables from salary deductions. The amounts of these are negligibly low.

In the first quarter of 2022 the Supervisory Board members and members of Committees were paid the following amounts as compensation for their work:

in EUR

First and last name	Flat-rate remuneration – gross (1)	Attendance fees – gross (2)	Total gross (1+2)	Total net	Travel expenses – gross	Travel expenses – net
Andrej Andoljšek	4,375	275	4,650	3,382	0	0
Branko Bračko	3,688	275	3,963	2,882	0	0
Tomaž Benčina	3,438	495	3,933	2,860	76	56
Peter Kavčič	3,750	715	4,465	3,247	138	101
Igor Stebernak	3,125	715	3,840	2,530	0	0
Jure Valjavec	3,125	495	3,620	2,633	0	0
Peter Celar	3,125	495	3,620	2,633	38	27
Branko Gorjan	3,125	275	3,400	2,473	0	0
Igor Zupan	3,125	715	3,840	2,793	0	0
Luka Kumer*	1,250	550	1,800	1,309	0	0
TOTAL	32,126	5,005	37,131	26,742	252	184

* External members sitting on committees and the Supervisory Board.

As at 31 March 2022 Zavarovalnica Triglav, d.d. had the following liabilities to the Supervisory Board members and members of Committees:

	in EUR
First and last name	Liabilities as at 31 March 2022
Andrej Andoljšek	2,463
Branko Bračko	2,345
Tomaž Benčina	2,290
Peter Kavčič	2,672
Igor Stebernak	2,058
Jure Valjavec	2,058
Peter Celar	2,095
Branko Gorjan	1,838
Igor Zupan	2,058
Luka Kumer*	900
TOTAL	20,777

* External members sitting on committees and the Supervisory Board.

Transactions with subsidiaries

In daily business operations, many insurance transactions are carried out with subsidiaries of Zavarovalnica Triglav. These transactions are performed at arm's length and at market prices. Their volume is shown below.

	in EUR
	31 March 2022	31 December 2021
ASSETS
Right of use Asset	857,642	888,293
Shares	131,924,683	131,924,683
Debt securities and loans	1,032,189	2,146,807
Insurance premium receivables from policyholders	1,861	10,027
Premium receivable from re-insurance	12,379,028	7,002,697
Receivables from co-insurers' share in claim	323	2,630
Receivables from re-insurers' share in claim	6,744,737	6,478,503
Other short-term receivables from insurance operation	204,128	228,795
Short term receivables from financing	33,323	21,531
Other short-term receivables	727,677	752,713
Short-term deferred expenses	33,703	30,732
LIABILITIES
Liabilities to policy holders	244	17,925
Liabilities to agents and brokers	0	419,562
Liabilities for co-insurance premiums	39,505	24,248
Liabilities for re-insurance premiums	19,965,540	10,967,485
Liabilities for re-insurers' share in claims	4,204,357	5,909,345
Other short-term liabilities	143,757	174,610
Lease liabilities	886,742	915,166

		in EUR
	Q1 2022	Q1 2021
INCOME AND EXPENSES
Gross written premium and active reinsurance premium	9,196,302	13,469,362
Outward re-/co-insurance premium (-)	-36,236,510	-28,319,817
Net premium income	-27,040,208	-14,850,455
Reinsurance commission income	8,546,935	5,616,942
Other income from insurance operations	398,742	364,199
Interest income	13,414	62,565
Other insurance income	281,239	264,317
Fees and commission income	1,385,106	963,697
Income from land and buildings	213,534	182,296
Other income	145,475	143,614
Other income from financial assets	1,826	625
TOTAL INCOME	-16,053,937	-7,252,199
Gross claims settled	-412,663	-2,138,646
Re-/co-insurers' share in gross claim	-5,135,726	-6,874,771
Net claims	-5,548,389	-9,013,417
Expenses for reinsurance premiums	1,041,967	1,323,985
Other financial expenses	34,348	1,441
Interest expenses	5,259	5,283
Depreciation of right-of-use assets	30,651	30,828
TOTAL EXPENSES	-4,436,164	-7,651,880

Transactions with associates

In daily business operations, many insurance transactions are carried out with associated companies of Zavarovalnica Triglav. These transactions are performed at arm's length and at market prices. Their volume is shown below, separately for Zavarovalnica Triglav and for the Triglav Group.

				in EUR
	Triglav Group		Zavarovalnica Triglav
	31 March 2022	31 December 2021	31 March 2022	31 December 2021
ASSETS
Shares	36,296,966	36,031,346	41,693,996	41,693,997
Receivables from insurers	14,615	8,857	14,615	8,693
LIABILITIES
Liabilities to agents and brokers	6,616	2,250	6,473	4,446
Other short - term liabilities	1,562	1,561	0	0
Accured expenses	686	450	0	0

				in EUR
	Triglav Group		Zavarovalnica Triglav
	Q1 2022	Q1 2021	Q1 2022	Q1 2021
Gross written premium	61,107	62,836	61,107	62,345
TOTAL INCOME	61,107	62,836	61,107	62,345
Gross claims settled	1,250	5,029	1,250	5,029
Acquisition costs	705	418	0	0
TOTAL EXPENSES	1,955	5,447	1,250	5,029

Transactions with shareholders and shareholder-related companies

The largest shareholders of Zavarovalnica Triglav are Zavod za pokojninsko in invalidsko zavarovanje Slovenije (Pension and Disability Insurance Institute of Slovenia – ZPIZ) and Slovenski državni holding (Slovenian Sovereign Holding – SDH), which hold a 34.47% and a 28.09% participating interest respectively.

The shareholder-related companies are those in which SDH has a majority participating interest or dominant influence. As at 31 March 2022, there were two such companies, with which neither the Company nor the Group have significant transactions.

2.9 Significant events after the reporting date

There have been no changes since 31 March 2022 that would have significantly impacted the presented financial statements for Q1 2022.

On 21 April 2022, Zavarovalnica Triglav announced that the General Meeting of Shareholders will be held on 24 May 2022.