In this period, the Sava Re Group acquired seven new members, entering the Serbian, Macedonian, Montenegrin and in 2009 also the Croatian insurance markets, thereby offering insurance services also in these areas. Sava Re was upgraded by Standard & Poor's to A - with a stable outlook.

At Sava Re we are well aware of the new circumstances. However, we do not view the new circumstances in the financial sector merely as a problem, but also as an important opportunity for revision, consolidation and the development of new projects based on the experience gained.

Due to local regulations, poorly developed financial markets and of course the global financial crisis, some subsidiaries are yet to meet the planned performance goals. In the long term, it is expected that the markets of the former Yugoslavia will show solid growth and an increase in purchasing power, which for us are the preconditions for the development of insurance markets. We believe that in the longer term, the economies of these countries will stabilise and economic indicators will approximate those in Eastern European countries that are already EU-members.

The Sava Re Group will continue to expand in the South-Eastern European markets, however, within the Group's resources and to the extent that the Group can ensure quality management. Political factors in these environments pose a certain risk for the Group strategy. Nevertheless, we believe that the time for entering these markets was right and that we will be able to contribute significantly to the development of the insurance industry in the region.

We wish to continue providing quality services to our business partners and to our shareholders the planned returns, and we shall therefore follow our values and mission. We will continue strengthening the position of all Group members and will, also in the future, strategically consolidate our position in the insurance and reinsurance market, in Slovenia as well as abroad.

Mag. Zvonko Ivanušič
Chairman of the Management Board, Sava Re, d.d.