2. Pozavarovalnica Sava, d. d. Slovenian insurance market overview Alexander Barsukov

3. 3 Ljubljana Maribor Novo mesto Kosovo Indicators for Slovenia Source: UMAR, Slovenia Economic Mirror, January 2013 General information CapitalLjubljana Area (km2)20.273 Population (million)2.0 EU membership2004 Eurozone2007 Sovereign ratingA (negative) Macroeconomic indicators20122011 GDP, per capita (EUR)17.45717.620 GDP, real growth rate-2,00%0,60% Unemployment rate (ILO definition, average)11,90%11,80% CPI, anuual average growth rate2,80%1,80% Public debt of GDP48,20%44,30%

4. 4 Ljubljana Maribor Novo mesto Kosovo Indicators for Slovenian Insurance market Slovenian insurance market20112010 Gross premiums written (EUR '000)2,092,3172,094,778 GPW - non-life (EUR '000)1,454,0891,438,765 GPW - life (EUR '000)638,231656,013 GPW - reinsurance (EUR '000)262,282263,029 Loss ratio61,30%59,30% Loss ratio (non-life)64,90%69,30% Loss ratio (life)53,10%37,40% Insurance penetration5,90% GPW, per capita (EUR) 1,046 1,047 Source: Slovenian Insurance association, May 2012

5. 5 Ljubljana Maribor Novo mesto Kosovo Key features of Slovenian Insurance market Mature market Insured are loyal to local companies Strong government involvement Insurance companies are region specialized Prone to cat events (EQ, Flood, Hail) Strong local reinsurance (two companies) Nuclear pool Agents are bound to insurance companies

6. 6 Ljubljana Maribor Novo mesto Kosovo History of Slovenian Insurance market development Period up until 1918 1291 – 1765 Precursors of insurance companies (maritime loans, brotherhoods, guilds) 1766 – 1920s The founding of the first insurance companies 1918-1945 Kingdom of Serbs, Croats and Slovenes (Yugoslavia) 1922-1939 Four Slovenian insurance companies were found 1945-1990 DFRY, FPRY, SFR Yugoslavia 1946 State institute of Insurance and Reinsurance is found in Belgrade 1961 Founding of various municipal insurance companies in Slovenia 1967 Merging all insurance companies except Maribor into Sava Insurance Company 1976 Founding of Sava Reinsurance community 1977 Merging of Sava IC with Maribor IC into Triglav IC Republic of Slovenia 1990 Transforming Triglav various regional offices into independent ICs 1990 Transformation of Sava Re into JSC 1992-1997 EU big insurance groups establish daughter companies in Slovenia (Merkur, Grawe, Generali) 1998 Founding of Triglav Re 2004 Establishing branch offices of EU Insurance groups (VIG, Alliance and etc.)

7. 7 Ljubljana Maribor Novo mesto Kosovo Market development 2002200320042005200620072008200920102011 Number of insurance companies1617 18 2021 Number of reinsurance companies2222222222 Branches of insurance companies from EU0002222333 Development of market participants

8. 8 Ljubljana Maribor Novo mesto Kosovo Market development Insurance Premium and Claims development

9. 9 Ljubljana Maribor Novo mesto Kosovo Market development Reinsurance Premium and Claims development

10. 10 Ljubljana Maribor Novo mesto Kosovo Motor insurance development 2 nd biggest LOB, its share follows western patterns, not CEE ones Number of vehicles increased 34% in 10 years MTPL premium falls 15% a year since 2008 due to increased competition (due to foreign branches) Line is still profitable due to radical improvements in traffic safety Compensation levels are set to EU directive 5 initially

11. Ljubljana Novo mesto Kosovo History Cat losses for Sava Re Group U/W YEARDate of LossCause Net Retained Loss fgu in EUR Cedants 20125.-6.11.2012flood3 916 500Maribor, Tilia, Sava 201017.-20.9.2010flood4 932 490Maribor, Tilia, Sava 20093.-4.8.2009storm/hail1 657 885Maribor, Tilia, Sava 200916.-17.6.2009storm/hail4 257 224Maribor, Tilia, Sava 200925.-27.5.2009storm/hail4 425 962Maribor, Tilia, Sava 200927.01.2009snow pressure1 947 558Maribor, Sava 200815.08.2008storm/hail39 491 875 Maribor, Tilia, Sava 200808.08.2008storm/hail3 150 583 Maribor, Tilia, Sava 200813.-14.7.2008storm/hail9 500 713 Maribor, Tilia, Sava 200718.09.2007torrent2 368 309 Maribor, Tilia, Sava 200628.-30.6.2006storm/hail4 100 633 Maribor,Tilia,Sava 200520.-21.8.2005flood735 454Tilia, Sava 200522.07.2005storm/hail1 035 883Tilia,Sava 200409.08.2004storm/hail1 599 624Maribor,Sava 200410.-12.6.2004storm/hail2 573 404Maribor,Tilia,Sava 200130.-31.5.2001storm/hail2 495 900Maribor,Tilia,Sava NOTE: The following figures represent losses to Sava Group (Maribor, Tilia, SavaRe). NOTE: Losses excluding crops, event losses exceeding 1.000.000 EUR f.g.u. 11

12. Ljubljana Novo mesto Kosovo History Cat losses for Sava Re Group U/W YEARLoss for the year# of events 20123 916 5001 20104 932 4901 200912 288 6294 200852 143 1703 20072 368 3091 20064 100 6331 20051 771 3372 20044 173 0282 20012 495 9001 2008 biggest cat loss for the group so far Most frequent cat events are hail and flood Hail brings most of the losses to the group However Slovenia is quake prone (100 years ago Ljubljana was deserted) 12

13. Ljubljana Maribor Novo mesto Kosovo Market shares CompaniesTotalLifeNon-life Triglav33,89%33,70%33,97% Adriatic Slovenica12,94%2,12%17,38% Maribor12,84%12,64%12,92% Vzajemna (medex)12,15% 17,13% KAD / Modra Zavarovalnica4,93%16,95% Generali4,21%3,29%4,58% Triglav, Zdravstvena3,91% 5,51% Tilia3,85%1,72%4,72% KD Zivlenie / in 2013 became a part of Adriatic slovenica3,05%10,48% Other8,25%19,10%3,80% Total100,00% 13

14. Ljubljana Maribor Novo mesto Kosovo Premium split by lines of business Gross premiums written Gross claimsLoss ratio Lines of business 201120102011201020112010 Total2 053 4432 094 3421288 6961242 83363%59% - Non-life total1 454 0841 438 329943 954997 20965%69% Health428 522409 665375 436365 66088%89% Motor vehicle liability283 414302 868155 164169 04955%56% Land motor vehicles casco254 495254 216178 729195 45470%77% Other damage to property142 799136 78972 64583 24751%61% Accident103 608107 01237 69039 96336%37% Fire and allied perils98 81694 70140 13851 97141%55% Other liability52 74950 04427 92326 62453% Credit44 41546 15738 10545 90086%99% Tourist assistance18 20612 5017 7676 82443%55% Other27 06024 37610 35712 51738%51% - Life total599 360656 013344 742245 62458%37% Unit-link350 049404 727136 34571 25439%18% Life insurance228 359228 413182 273169 84480%74% Other371 001427 600162 46975 78044%18% 14

15. Ljubljana Maribor Novo mesto Kosovo Premium split by lines of business 15

16. Ljubljana Maribor Novo mesto Kosovo Operating efficiency of (re)insurance companies in 2011 Number of employees Gross premium written TotalPer employee EUR 1000 Total employees in the sector6 207-- Reinsurance companies108 262 282 2 429 - Triglav Re37 121 932 3 295 - Sava Re71 140 350 1 977 Insurance companies6 099 2 053 443 337 - Triglav2 400 694 962 290 - Adriatic Slovenica998 265 301 266 - Maribor875 263 244 301 - Vzajemna (medex)292 249 075 853 - KAD / Modra Zavarovalnica53 101 053 1 907 - Generali330 86 235 261 - Triglav, Zdravstvena78 80 190 1 028 - Tilia382 78 893 207 - KD Zivlenie / in 2013 merged to Adriatic Slovenica177 62 488 353 16

17. Ljubljana Novo mesto Kosovo Insurance business in Slovenia 2011 and in selected countries 2010 17 Country # ofpremiumPremium/Inhabitant Premium on GDP (%) Premium / Insurance companies Employees Total (EUR m) Share of life(%) Total (EUR)Life (EUR) company (EUR m) employee (EUR) Switzerland15145.65939.89754,7%5.0712.77510,0%264873.804 Denmark18416.77320.91771,4%3.7692.6868,9%1141.247.064 Belgium14523.72729.41464,9%2.6941.7508,3%2031.239.685 Italy24247.185125.95471,5%2.0781.4868,1%5202.669.365 EU(27)4.886868.4841.035.10661,6%2.0731.2788,5%2121.191.854 Austria12726.53816.74845,1%1.9938995,9%132631.095 Portugal8211.23416.34274,5%1.5361.1449,5%1991.455.987 Slovenia196.0992.05329,2%1.0002925,8%108336.613 Greece739.0005.23644,1%4622042,3%72581.778 Hungary3225.0033.06352,4%3071613,2%96122.505 Croatia2311.0851.26926,6%287762,8%55114.479 Turkey6416.6837.07715,4%96151,3%111424.204

18. Pozavarovalnica Sava, d. d. Thank you for your attention.