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, 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 three quarters of 2016. 

In the nine months to 30 September 2016, the Sava Re Group increased year-on-year gross premiums written by 1.5 percent to € 390.5 million. Premium growth was contributed mainly by Slovenian non-life insurance business (2.4 percent growth) and non-Slovenian insurance business (4.0 percent growth). This growth was partly offset by a moderate year-on-year decline in reinsurance premiums (-0.6 percent) and Slovenian life insurance premiums (-0.8 percent). The largest growth in gross premiums written was achieved in the Croatian (22.3 percent) and the Macedonian markets (8.3 percent). To date the Group wrote 80.0 percent of the total Group premium target for 2016. The Company estimates that the annual target will be achieved by the end of the year. 

In the nine months to 30 September 2016, the Sava Re Group generated a pre-tax profit of € 27.8 million, up 2.9 percent year-on-year. The net profit was 22.6 million, down 1.6 percent year-on-year. A major year-on-year improvement was in comprehensive income of € 36.8 million, which totalled € 16.4 million in the nine months to 30 September 2015. The Company estimates that the Sava Re Group will be following originally planned results until the year-end. 

The largest contribution to overall pre-tax profits came from non-life insurance business (€ 12.5 million), which was smaller than the year-on-year figure (€ 15.5 million), as it was impacted by a catastrophe event eroding pre-tax profits by 5.5 million. In mid-August, the north-eastern and central parts of Slovenia were hit by a windstorm with torrential rains and hail causing damage to many residential, commercial and industrial buildings as well as motor vehicles. Reinsurance profits of 4.9 million, however, are an improvement from the year-on-year figure (1-9 2015: € 1.4 million). 

Further year-on-year improvements were recorded in the expense ratio and the return on the investment portfolio for the nine months to 30 September 2016. In addition, despite the challenging conditions in the financial markets, the return on the investment portfolio (excluding exchange differences) dropped by only 0.1 percentage points. 

The chief project of 2016 was the merger of four Sava Re Group insurers. Zavarovalnica Sava (Sava Insurance Company), which was formed from Zavarovalnica Maribor, Zavarovalnica Tilia and the Croatian insurers Velebit osiguranje and Velebit životno osiguranje, was entered in the register of companies on 2 November 2016, as planned, whereby the legal merger was formally concluded. 

Attached hereto is the Unaudited Financial Report of the Sava Re Group and Financial Statements of Sava Re, d.d., for the Nine Months to 30 September 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 this announcement.