8 April 2021

Proposed dividend for Sava Re shareholders

Pursuant to the rules of the Ljubljana Stock Exchange d.d., Ljubljana and the Market in Financial Instruments Act, Sava Re d.d., Dunajska 56, Ljubljana makes the following announcement:

In its session of 7 April 2021, the supervisory board of Sava Re d.d. approved the audited annual report of the Sava Insurance Group and Sava Re d.d. for 2020.

The supervisory and management boards have prepared a draft resolution for the general meeting to the effect that, taking into account the number of own shares, shareholders be paid a dividend of EUR 0.85 gross per share, in total EUR 13,173,041.60, or 23.4% of the Group’s 2020 net profit.

The management and supervisory boards have drafted the proposal in line with the criteria set by the Insurance Supervision Agency (the Agency). Based on the Agency’s strictest criterion, the dividend must not exceed the average dividend paid in the period 2017–2019, which is EUR 0.85 per share. Furthermore, the Agency set a condition that, in order to pay dividends, companies must have made a profit in both the financial years 2019 and 2020, with the parent companies taking into consideration the financial position of both the parent as well as that of the group of companies they control when deciding on the payment of dividends. The Agency will consider the profitability criterion, taking into account the specificities of the business model. The Sava Insurance Group generated a net profit of EUR 50.2 million and EUR 56.4 million in 2019 and 2020, respectively. While Sava Re made a loss in 2020, this is due to a recommendation (issued in 2020) to insurance companies, including Sava Re’s subsidiaries, to use a very cautious approach regarding the payment of dividends. If Sava Re had been paid dividends by its subsidiary insurance companies in 2020, it would not have posted an operating loss.

Sava Re is compiling documents to demonstrate its financial stability, solvency, liquidity and resilience to stress scenarios (including Covid-19 impacts). The Company has presented evidence to the Agency that it is capable of paying out the proposed dividend as the Group demonstrates a robust solvency position with a solvency ratio of 197% as at 31 December 2020 (the auditor’s assurance report with limited assurance has not been issued as of the publication date of this press release). The Company’s solvency ratio stood at 272% as at 31 December 2020. The Company’s solvency and financial condition report is also being released today.

Before calling the general meeting, the Company will re-examine the proposed resolution regarding the appropriation of distributable profit, taking into account all the Agency’s criteria and recommendations applicable at that time.

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