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1 April 2020

Insurance Supervision Agency recommends insurers suspend dividend payments

Pursuant to the rules of the Ljubljana Stock Exchange d.d., Ljubljana, and applicable legislation, Sava Re d.d., Ljubljana, announces the following:

Sava Re informs the public that on 31 March 2020 it received a letter from the Slovenian Insurance Supervision Agency recommending that insurance, reinsurance and pension companies temporarily suspend dividend payments and refrain from making any irrevocable commitments to pay dividends. Through this temporarily measure, in force until 1 October 2020, the Insurance Supervision Agency believes insurance companies will increase their resilience to the financial shock resulting from the consequences of the COVID-19 epidemic, maintain financial stability and prevent any potential business disruptions.

Although based on currently available information Sava Re estimates that it is capable of declaring dividends in line with its dividend policy and the proposed appropriation of distributable profit set out in its audited annual report 2019, the Sava Re management board will propose to the Company’s supervisory board that Sava Re follow the recommendation of the Insurance Supervision Agency in its entirety and that its notice of the 36th general meeting of shareholders be prepared in compliance with the measure of temporary suspension of dividend payments for 2019.