Pursuant to the Rules of the Ljubljana Stock Exchange, d.d., Ljubljana and the Market in Financial Instruments Act, Sava Re, d.d., Dunajska 56, 1000 Ljubljana hereby announces the following:

In accordance with the requirements of the Slovenian and EU insurance legislation, Sava Re, d.d. hereby releases the Solvency and Financial Condition Report of Sava Re, d.d. 2016 (hereinafter: SFCR), as approved by the management board of Sava Re d.d. with the consent of the Company's supervisory board. With respect to the SFCR, the independent auditor Ernst & Young issued a report in accordance with the Decision on the additional audit review of insurance companies and additional auditor's report (Official Gazette of RS, no. 9/2016) issued by the Insurance Supervision Agency in accordance with the Slovenian Insurance Act (ZZavar-1).

Solvency and financial condition report of Sava Re, d.d. contains detailed information on the system of governance, key functions, the established risk management system and own risk and solvency assessment (ORSA). It also describes in detail the risk profile of the company. The report contains information on the valuation of assets and liabilities for the purposes of demonstrating the solvency of the company, which are all valued at fair value. The report describes capital management as well as the amount of eligible own funds, solvency capital requirement and solvency ratio of the company. For the solvency calculation the company uses Solvency II standard formula. Sava Re is capital adequate and has a high solvency ratio as at 31. 12. 2016. The report has been reviewed by a certified auditor.

Because the information in the report relates only to the Sava Re d.d., the report does not show solvency and financial position of the Sava Re Group. Information about the group will be presented in the solvency and financial condition report of the group, which will be, in accordance with the prescribed deadline, published before 1. 7. 2017.

The Solvency and Financial Condition Report of Sava Re, d.d. 2016 (SFCR) is attached hereto.

This announcement will also be available on the Company’s website at www.sava-re.si, at least five years from the date of the announcement.