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:

The Sava Insurance Group has completed its annual planning cycle for the coming year. It has assessed the key performance indicators for the year and set its performance targets for 2025. In addition, the Group has set new annual targets for each of its strategic business pillars on the road to delivering the Group’s 2023–2027 strategy.

Estimated results for 2024

This year, the Sava Insurance Group is successfully completing the second year of implementation of its 2023–2027 strategy. Pre-tax profit for 2024 is estimated at EUR 100 million, or EUR 78 million after tax, which is approximately 10% above target. The Company’s management estimates that this year the Group will pass the one-billion-euro mark in business volume, a significant milestone. Equally important, over the past two years the Group has increased its market share in most of its core markets by developing new products, improving customer touchpoints and expanding distribution channels.

Business plan for 2025

The Sava Insurance Group has set the following targets for 2025:

• Business volume growth > 5%
• Profit after tax > EUR 84 million
• Return on equity > 11%
• Combined ratio < 94%
• Solvency ratio at upper end of 170%–210% range

Non-life business volume in the EU markets is planned to grow by 5%, driven by enhanced coverage for existing customers and the acquisition of new customers. The non-EU markets are planned to grow by more than 8% with continued strong organic growth, as the Group sees significant potential in these markets for non-motor products, improving the productivity of its distribution networks and developing additional distribution channels.

For similar reasons, robust premium growth of at least 10% is also planned for the non-EU life segment, and growth of 3% is planned for the EU market.

Reinsurance premiums are planned to increase by 4% through controlled organic growth. Growth is expected primarily in some of the new markets.

Strong business volume growth of 9% is also expected for pensions and asset management, where equity market performance is an important planning element, and long-term growth trends in these markets have been considered.

The Group is aiming to achieve an after-tax profit of at least EUR 84 million, which is more than 7% growth over the 2024 estimate. The combined ratio for the first nine months of 2024 indicates that it could remain at a very favourable level until the end of the year. The ratio for 2025 will likely be slightly less favourable and more in line with the longer-term historical average. However, the planned ratio of 94% in 2025 is more ambitious than the 95% target set in the strategy.

In 2025, the Group will continue to implement its business strategy around its three key strategic priorities. The focus will remain improved service through automating and digitising customer communications and introducing digital and self-care solutions to improve and simplify the customer experience across the Group’s businesses. In addition, the Group will continue to place a strong emphasis on improving its sales and customer service processes, while striving to optimise its internal business processes. In the area of sustainability, the Group will continue to implement its sustainability policy based on a commitment to environmental protection, social responsibility and the development of innovative and sustainability-driven products and services.

The management board believes that the Group’s goals for 2025 are ambitious enough, in terms of both the development activities and the financial targets set. The Company continues to build a story of growth, profitability and increasing value to all its stakeholders.

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.