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

PREMIUM GROWTH AND FAVOURABLE CLAIMS EXPERIENCE. In the first six months of 2019, Triglav Group charged EUR 630 million of consolidated gross written premiums (index 110). Premium growth was seen in most markets of Triglav Group, mainly exceeding the growth of the whole market. In Slovenia, where Triglav Group collects 76% of consolidated premium, average premium growth stood at 8% (market growth was 7%) and 10% in the markets outside of Slovenia. Premium growth was also recorded in all three insurance segments; the non-life insurance segment grew by 10%, the health insurance segment by 21% and the life and pension insurance segment by less than 1%. Claims experience was relatively favourable in the reporting period. Gross claims paid of the Group amounted to EUR 335 million (index 102), whilst major CAT events are estimated at EUR 4.9 million (primarily as a result of June storms with hail in Slovenia). The combined ratio of the Group was favourable at 93.2%, foremost thanks to the improved claims ratio.

SOLID BUSINESS RESULTS. In the first six months of 2019, Triglav Group posted a profit before tax of EUR 41.7 million or 17% more than in the same period last year. Such a solid result can be attributed to the higher growth of net premium earned than the growth of net claims incurred in non-life insurance and the higher realised return on financial investments.

RETURNS ON FINANCIAL INVESTMENTS. The Group’s investment portfolio is worth EUR 3.2 billion. The Group’s investments are managed relatively conservatively and with the aim of maintaining a high overall credit rating. Returns on financial investments, excluding unit-linked life insurance contract investments, totalled EUR 51.4 million in the first six months of 2019. Compared with the preceding year, returns on financial investments were higher mostly as a result of higher net gains on the sale of financial assets and higher net income from changes in the fair value. In contrast, net interest income continued to decrease due to the low interest rate environment. Due to a further reduction in interest rates, additional insurance technical provisions for life insurance were made in the amount of EUR 8.6 million as a result of the liability adequacy test (LAT).

HIGHER VOLUME OF ASSETS UNDER MANAGEMENT. As at 30 June 2019, Triglav Group, including its subsidiaries Triglav Skladi and ALTA Skladi (acquired in 2019), held a 34.3% share in the Slovene mutual fund market, thereby being a market leader. As at the reporting date, the Group managed net assets worth EUR 947.8 million in mutual funds or 12% more than at the 2018 year-end, while discretionary mandate assets equalled to EUR 73.7 million (index 147).

Andrej Slapar, President of the Management Board of Zavarovalnica Triglav said: “With the team of over 5,000 employees in the region, Triglav Group holds high, “A” credit ratings assigned by established rating agencies, maintains a strong position and pursues its growth and development strategy. We are pleased with the results achieved. Taking into account the business conditions anticipated until the end of the year, we confirm our annual profit guidance.”

The Unaudited Report of Triglav Group and Zavarovalnica Triglav for H1 2019 and the Presentation for Investors are enclosed hereto.

This information will be published on the website of Zavarovalnica Triglav at www.triglav.eu as of 20 August 2019 and will remain available on the Company’s public website for a period of at least ten years.