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 its regular session earlier today, the supervisory board of Sava Re, d.d. was presented with the unaudited financial results of the Sava Re Group and Sava Re, d.d. for the first quarter of 2017.

The Sava Re Group had a successful first quarter 2017. Gross premiums written increased by 4.2 per cent year on year to € 159.9 million. Premium growth was contributed by Slovenian non-life insurance business (4.1 per cent growth) and Slovenian life insurance business (8.0 per cent growth). High growth rates were also achieved by non-Slovenian non-life insurance business (10.1 per cent) and non-Slovenian life insurance business (13.9 per cent). As soft market conditions persist in global reinsurance markets, there was a minor drop in reinsurance premiums (of 1.0 per cent). Thus the Group wrote 32.4 per cent of total Group premiums planned for 2017.

In the first three months of 2017, the Sava Re Group generated a net profit of € 9.2 million, an increase of 29.0 per cent year on year. This improvement was mainly driven by a benign development of Slovenian non-life insurance business, but also due to an improved performance of Slovenian reinsurance and life insurance operations. The results of the non-Slovenian businesses were marginally weaker. On the Group level, there was a year-on-year improvement in the net expense ratio, the net incurred loss ratio and consequently also in the combined ratio. There was also a minor improvement in the return on the investment portfolio compared to the same period last year.

Attached hereto is the document "Unaudited Financial Report of the Sava Re Group and Financial Statements of Sava Re, d.d., for the Three Months to 31 March 2016".

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.