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17 February 2009

Sava Re to Acquire Majority Stakes in Two Croatian insurers

Sava Re received from the Croatian Financial Services Supervision Agency permission to acquire a qualifying shareholding of over 50% in the companies Velebit Osiguranje, d.d., Zagreb and Velebit životno osiguranje, d.d., Zagreb.

Sava Re intends to acquire 100% of Velebit usluge, d.o.o. (Zagreb, Croatia) from Zavarovalnica Maribor, d.d. Velebit usluge is majority owner of the two above-mentioned insurers. The two insurers started operations in December 2007 and January 2008, respectively. Velebit Osiguranje is a non-life insurer marketing a full range of non-life products. In its first year of operations, the Company wrote EUR 5,2m if gross premiums, equivalent to a market share of 0,5 % in the Croatian non-life market. Velebit životno osiguranje transacts exclusively life business, beginning with traditional life products. In its first year, the life insurer wrote EUR 1,1m of gross premiums, equivalent to a market share of 0,3% in the Croatian life market. The data given are unaudited.
At Sava Re it is expected that the acquisition process should be completed by the end of March 2009.
By acquiring stakes in two Croatian insurers, Sava Re is following its strategy of expanding to the markets of the Western Balkans. With this acquisition, the Group now consists of ten members and has entered the extremely important Croatian insurance market.

The Management Board