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 (Sava Re, Pozavarovalnica Sava d.d. or the Company) makes the following announcement:

On 3 October 2024, following its regular annual rating review, the rating agency AM Best (the Agency) issued its ratings on Sava Re:

“AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Pozavarovalnica Sava d.d. (Sava Re) (Slovenia), the operating holding company of the Sava Insurance Group. The outlook of these Credit Ratings (ratings) is stable.

“The ratings reflect Sava Re’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).” Source: AM Best press release

Commenting on its assessment of the Company’s balance sheet, the Agency states: “Sava Re’s strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), liquid investment portfolio, prudent reserving and good internal capital generation collectively contribute to an overall balance sheet strength assessment of very strong.” Source: AM Best press release

Assessing the Company’s operating performance, the Agency notes: “Sava Re’s operating results in 2023 were strong, driven by sound life and non-life underwriting performance, supplemented by healthy investment income, resulting in a return on equity (ROE) of 11.6% based on IFRS 17 (as calculated by AM Best). This is in line with the company’s track record of strong and stable operating results, as indicated by a five-year (2018-2022) weighted average ROE of 14.3% based on IFRS 4 (as calculated by AM Best).” Source: AM Best press release

The full AM Best press release and other information on the ratings is available at https://news.ambest.com/PR/PressContent.aspx?altsrc=2&refnum=35241.

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.