In accordance with 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:

• Business volume up by 18.4% YoY to €307.8m
• Favourable claims experience for the period
• Profit before tax up 56.5% YoY to €38.0m
• Return on equity of 18.0%
• Solvency ratio within 193%–199% range

The Group increased its business volume by 18.4% to EUR 307.8 million, with growth in all operating segments. This was primarily driven by growth in gross written premiums, in both the non-life (EU 17.9%, non-EU 18%) and life business (EU 23.1%, non-EU 12.3%), while the reinsurance segment also grew strongly (15.8%). Growth was achieved through price adjustments, as well as a further solid increase in the number of policies sold. With revenue growth of 18.7%, the pensions and asset management segment also performed strongly.

Net profit for the period amounted to EUR 29.8 million, an increase of 48.3% over the same period last year. In addition to higher insurance revenue, the increase is also the result of a very favourable claims experience in the reinsurance and non-life segments, with no major losses or CAT events, which are normally expected each year and therefore factored into the Group’s annual business plan. Consequently, the incurred claims remained at approximately the same level as last year, and the combined ratio improved significantly to a remarkable 83.8%, which is not expected to be maintained until the end of the year. The profit was also supported by an improved finance result, up 39.4%, reflecting higher interest income from the investment of operating cash flows and reinvestments at higher rates. The net result raised the annualised return on equity to 18.0%.

The solvency ratio, estimated at between 193% and 199%, shows that the Group remains well capitalised. The composition of the Solvency Capital Requirement (SCR) by risk category has not changed significantly since the end of 2023. The Solvency and Financial Condition Report of the Sava Insurance Group for 2023 was published on 17 May 2024.

Despite an extremely favourable first quarter, the Group remains exposed to major losses and increased loss frequency, as well as financial market volatility, all of which may affect the development of the Group’s results as the year unfolds.

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