Pursuant to the rules of the Ljubljana Stock Exchange, Ljubljana, and the Market in Financial Instruments Act, Sava Re d.d., Dunajska 56, Ljubljana, makes the following announcement:

Sava Insurance Group surpasses plans with €79.6m in pre-tax profit on strength of business line diversification and despite a more modest performance by Zavarovalnica Sava due to unprecedented storms and floods

• Business volume up by 14.4% to €910.1m
• Pre-tax profit of €79.6m
• Return on equity of 10.8%
• Solvency ratio within 182%–188% range
• All 2023 targets achieved

The Sava Insurance Group achieved strong organic growth in all its operating segments and markets in 2023. The business volume increased to EUR 910.1 million, up 14.4% on the previous year and 13.8% ahead of plan. This growth was mainly driven by gross non-life premiums, which increased by 19.5% in the domestic market and by 21.7% in international markets. The life insurance business also grew, by 7.5% domestically and 13.6% abroad. In reinsurance, the Group continued to improve the composition of its portfolio, achieving a 19.4% increase in gross premiums of non-proportional contracts.

The Group’s net profit of EUR 64.7 million and return on equity of 10.8% were above plan, despite the significant impact of the summer storms and floods, which materially affected the Group’s largest subsidiary, Zavarovalnica Sava, because the Group’s other operating segments performed better than planned. A significant contributor to the outperformance of the plan was Sava Re’s performance in the international reinsurance markets. The hard reinsurance market trends in recent years, the restructuring of the reinsurance portfolio to improve profitability and the absence of major losses also contributed to the strong above-target result. In addition, investment performance supported the plan’s outperformance. Due to rising interest rates, the Group’s investment return was 2.1%, 0.6 percentage points higher than planned. The Group’s companies that manage financial assets also closed 2023 well ahead of target. This performance was driven by both capital market movements and increased inflows into the funds. All these factors mitigated the severe negative impact of the storm and flood losses. Thus, the Group’s capital strength remained at a high level in 2023 as the solvency ratio, estimated at between 182% and 188%, remained at the previous year’s level and within the optimal capitalisation range.

The Group has also been successful in advancing its core strategic priorities. An ongoing commitment to customer centricity and business process optimisation is accelerating and simplifying business processes, resulting in improvements in service at all points of the customer journey. Moreover, sustainability has become more firmly embedded in the operations of the Group companies. A culture of sustainability is also being systematically built among employees, with the Group aiming to set an example for the wider community.

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