In accordance with the Ljubljana Stock Exchange Rules and the applicable legislation, ZAVAROVALNICA TRIGLAV d.d., Ljubljana, hereby publishes the following notice:

Zavarovalnica Triglav d.d. publishes the Solvency and Financial Condition Report of the Triglav Group for 2016, which was audited by a certified auditor. The Report was drawn up in compliance with Solvency II legislation. The calculations according to the mentioned methodology confirm that the Triglav Group is financially strong, stable and carefully managed.

The Triglav Group is well capitalised; as at 31 December 2016, the ratio of eligible own funds and the solvency capital requirement of the Triglav Group (the capital adequacy ratio) stood at 246%. The ratio of eligible own funds and the minimum consolidated capital requirement at the Group level was 599%.

Own funds taken into account in the calculation of the capital adequacy ratio amounted to EUR 844 million as at 31 December 2016, of which as much as 98% are classified into Tier 1 in accordance with Solvency II legislation. In the capital adequacy calculation as at 31 December 2016, eligible own funds had already been reduced by the expected dividends for 2016 to be paid out in 2017. The capital requirement is equal to the solvency capital requirement of the Group, which amounted to EUR 343 million. It is calculated in accordance with the standard formula, taking into account the diversification effect of the Group members and does not include any transitional adjustments allowed by the law.

In addition to the information on the capital management of the Group, the Report describes the valuation methods of assets and liabilities of the Triglav Group for solvency purposes and clarifications of the differences in relation to the valuation under the international accounting standards.

The Triglav Group and its 37 companies operating in six countries of the Adria region are exposed to numerous risks in the course of their operations, therefore understanding these risks, their adequate assessment and effective management are an important part of the Group’s system of governance. Detailed explanations thereof are included in the SFCR, inter alia, a description of the own risk and solvency assessment process (the ORSA process) at the Group level and the risk profile of the Group.

This information will be published on the website of Zavarovalnica Triglav d.d. at www.triglav.eu as of 21 June 2017 and will remain available on the Company's public website for a period of at least five years.