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15 March 2022

No material impact on operations of Sava Insurance Group expected due to direct consequences of developments in Ukraine

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, 1000 Ljubljana, makes the following announcement:

The Sava Insurance Group has examined the impact of the war in Ukraine on its operations and informs the public that, due to its small volume of business with and low investment exposure to Russia and Ukraine, the changed circumstances will not have a material impact on its business results.

Reinsurance premiums

The Sava Insurance Group (through Sava Re) has written reinsurance contracts with Russian and Ukrainian partners the annual premium volume of which accounts for only 0.5% of the Group’s total planned operating revenue for 2022. All contracts contain so-called sanctions clauses. In the event of sanctions imposed by the European Union or the United Nations, such clauses limit the obligations of Sava Re under relevant contracts if such obligations are contrary to the applicable sanctions. In addition, the reinsurance contracts written exclude coverage related to war.

Investment portfolio

The Group’s credit and currency exposure to Russia, Ukraine and Belarus as at 31 December 2021 accounted for just 0.24% of the Group’s financial investments. Most of this exposure arises from cash and cash equivalents, and rouble-denominated investments, which are matched to liabilities denominated in the same currency. Only a small part, 0.04%, is invested in securities of Russian issuers, and so the credit risk is also negligible.

Estimated impact

Based on the above, the Sava Insurance Group estimates that the current situation in Ukraine will not have a material direct impact on its operations; however, an indirect impact on the Group’s investment portfolio can be expected due to the trends in financial markets.