Pozavarovalnica Sava, d. d. Roadshow Stockholm, May 2011 SAVA RE GROUP AND SAVA REINSURANCE COMPANY RESULTS 2010

Pozavarovalnica Sava, d. d.

Roadshow Stockholm, May 2011

SAVA RE GROUP AND SAVA REINSURANCE COMPANY

RESULTS 2010



WHO WE ARE AND OUR PAST DEVELOPMENT

DEVELOPMENT THROUGHOUT TIME

1973 – Starts as reinsurance department of Sava Insurance

1977 – Spin-off from Sava Insurance and incorporation under the name Reinsurance Community Sava

1990 – Reorganises as a joint-stock company under the new Slovenian Companies Act

1991 – Slovenia declares independence from Yugoslavia; transition from socialist system to market economy

1991 – 2% of reinsurance premiums coming from international markets; decision to expand in international reinsurance markets

1998 – Acquisition of Zavarovalnica Tilia; entry into Slovenian direct insurance market

1999 – Starts to increase minority stake in Zavarovalnica Maribor to 45,79% as of today

2003 – Unallocated portion of share capital transferred to SOD, who becomes 99,9% owner

Consolidation of Sava Re’s position in Slovenia and crystallisation of

ownership structure

Beginnings during Yugoslav socialist period

1973 1991 2003

KEY STORY BEHIND

DEVELOPING REINSURANCE BUSINESS

INTERNATIONAL INWARDS PREMIUM FROM NIL IN 1973 TO NIL IN TIMES OF YUGOSLAV HYPERINFLATION TO 50,0% IN 2010 OF NON-CONSOLIDATED REINSURANCE PREMIUM INCOME

DEVELOPMENT & GROWTH IN TIME

4

DEVELOPMENT THROUGHOUT TIME

2004 – Acquisition of a minority stake in Osiguranje Helios in Croatia, 2006 – sale of entire stake in Osiguranje Helios when there was an indirect change in control in the majority shareholder

2006 – Acquisition of majority stakes in Dukagjini (now renamed Illyria) and Sava osiguranje; entry into Kosovan and Serbian non-life insurance markets

2007 – Acquisition of majority stakes in Sava Tabak and Sava Montenegro, entry into Macedonian and Montenegrin non-life insurance markets

Acquisition-driven expansion to insurance markets of former

Yugoslavia

2004 2008 2008

Expansion to life insurance business and return to Croatia

2008 – 100% owned greenfield Sava životno osiguranje a life insurance operation in Serbia

2008 – Now 100% owned greenfield Dukagjini Life (now renamed Illyria Life) in Kosovo

2009 – Acquisition of majority stakes in Velebit osiguranje and Velebit životno osiguranje; return to the Croatian non-life and life insurance market

KEY STORY BEHIND

DEVELOPING INSURANCE BUSINESS

STARTED AS A REINSURANCE COMPANY - NOW AN IMPORTANT REGIONAL INSURANCE GROUP

2010 PREMIUM(1) STRUCTURE:

- 47% REINSURANCE PREMIUM

- 48% NON LIFE INSURANCE PREMIUM

- 5% LIFE INSURANCE PREMIUM

2004 2008

__________________________________________________________________________________________________________________________________________________ Note: (1) Consolidated premium income,

DEVELOPMENT & GROWTH IN TIME

5

6

INTRODUCTION TO THE SAVA RE GROUP

Ljubljana

Maribor

Novo mesto

Kosovo

Overview

10 companies in reinsurance, non-life and life insurance business

Reinsurance relations with numerous players worldwide

Insurance operations in 6 markets of former Yugoslavia

Total consolidated GPW of EUR 259,1m(1)

Reinsurance (GPW: EUR 120,8m)

Largest locally-based non-captive reinsurer in CEE

No.1 reinsurer in Slovenia(2)

37 years of presence in Slovenia and internationally

181 reinsurance clients

Rated by S&P since 2005; current rating (November 2010) A- with a stable outlook

Direct insurance (GPW: EUR 138,3m)

Mostly non-life exposure, life insurance operated through Green-Fields

Operating in direct insurance market since 1998 through Tilia

Substantial long-term equity investment in 3rd largest Slovenian insurer, Maribor with GPW of EUR 259,6m(3)

Exposure to market potential in countries of former Yugoslavia through acquisition of 4 subsidiaries in 2006-2007, establishment of 2 life companies in 2008 and acquisition of 2 subsidiaries in 2009

__________________________________________________________________________________________________________________________________________________ Notes: (1) As per December 31, 2010

(2) Market share measured on reinsurance GWP in Slovenia (3) As per December 31, 2010

Ljubljana

Maribor

Novo mesto

Slovenia

Macedonia

Montenegro

Serbia

Kosovo

Croatia Bosnia

7

WHO WE ARE TODAY – 3 KEY SEGMENTS

REINSURANCE

SLOVENIA INTERNATIONAL

INSURANCE

SLOVENIA

INSURANCE

FORMER YU

OUR MARKETS

8

THE SAVA RE GROUP

REINSURANCE NON LIFE INSURANCE LIFE INSURANCE PREMIUM INCOME 2010

INDEX (10/09)

SLOVENIA Sava Re Tilia Insurance Company (Composite Insurer)

99,7% owned by Sava Re

Tilia Insurance Company (Composit Insurer)

R: EUR 120,8mNL: EUR 63,7mL: EUR 10,2m T: EUR 194,7m

+ 0,4%+ 2,8%- 1,5%+ 1,0%

CROATIA Velebit osiguranje56,35% owned by Sava Re

Velebit životno osiguranje53,35% owned by Sava Re

NL: EUR 8,5mL: EUR 1,3m T: EUR 9,8m

+ 20,3%- 8,0%

+ 17,3%

SERBIA Sava osiguranje99,99% owned by Sava Re

Sava životno osiguranje99,99% owned by Sava Re


+ 17,5%+ 936,8%

+ 19,7%

KOSOVO IllyriaWholly-owned by Sava Re

Illyria LifeWholly-owned by Sava Re


+ 9,8%+ 492,2%

+ 14,1%

MONTENEGRO Sava MontenegroWholly-owned by Sava Re

NL: EUR 9,7mT: EUR 9,7m

- 12,6%

MACEDONIA Sava Tabak66,7% owned by Sava Re

NL: EUR 15,2mT: EUR 15,2m

- 8,6%

- Greenfields

- Established Company COVERING MOST OF THE FORMER YUGOSLAV MARKETS

SLOVENIA – THE GROUP’S MOST IMPORTANT MARKET

LIFE OPERATIONS IN EARLY STAGES

R – reinsuranceNL – non-lifeL – lifeT – total

9

OWNERSHIP STRUCTURE OF SAVA RE

75% free float 3% foreign investors POSR (listed on the LJSE since 14 June 2008)

P/B1 = 0,48 P/E2 = 13,56 P/GPW3 = 0,29

1) P/B = price per share on 31 December 2010 / book value of shares on 31 December.20102) P/E = price per share on 31 December 2010 / earnings per share in 20103) P/GWP = price per share on 31 December 2010 / GPW 2010 per share4) ROE = net profit/loss / average equity

5.481 shareholders



WHERE WE ARE GOING

CAGR 2008 – 2010

To balance international and domestic portfolio

Greenfield in Croatia, high growth rates on all markets, developing health in Kosovo

11

GPW million EUR (consolidated)

Slovenia 62,3

Slovenia 63,7

Slovenia 55,2

International 50,0

International 56,6

International 65,8

2008

2009

2010

Slovenia 57,4

Slovenia 61,9

Slovenia 63,7

International 49,1

International 57,8

International 62,1

2008

2009

2010

10,9

11,4

12,5

2008

2009

2010

Reinsurance

14,8%

Non-lifeinsurance

12,5%

Lifeinsurance

Greenfields in Serbia, Kosovo and Croatia

7,4%

PERMANENT GROWTH

OUR INVESTMENT STORY

12

REINSURANCE GROWTH ON FOREIGN MARKETS

98%

136%

111%

85%

105%

83%

65%

104%

96% 94%

40%

60%

80%

100%

120%

140%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

CR foreign business

CR foreign business

Asian markets will be the source of our future growth

0

20

40

60

80

100

120

140

160

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

(mill

ion

EUR)

SLOVENIA WESTERN BALKANS ASIA MIDDLE EAST CIS EUROPE AFRICA OTHER

Underwriting year(mio EUR)

2009 2010Estimation

2011

Asia 9,2 15,6 19,6 China, South Korea, Maleysia, Japan, India, Singapore

Middle East 2,6 3,7 4,8 Israel, United Emirates, Saudi Arabia, Oman

CIS countries 3,6 3,7 4,5 Russia, Armenia, Kazakhstan, Ukraine, Georgia, Moldova

Africa 1,3 1,5 2,0Nigeria, Tunisia, Ivory coast, Algeria, Togo, Madagascar, Morocco,

South African Republic


13

THE WESTERN BALKANS HAVE GROWTH POTENTIAL

THE SAVA RE GROUP

OUR MARKET SHARES MARKET PENETRATION & VOLUME 2010

CROATIA 2010: NL 0,92%; L 0,39%2009: NL 0,75%; L 0,40%2008: NL 0,54%; L 0,31%

TOTAL PREMIUM: EUR 1,2bn PENETRATION IN GDP: 2,8%PREMIUM/CAPITA: EUR 284

SERBIA 2010: NL 3,35%; L 0,37%2009: NL 2,95%; L 0,04%2008: NL 2,37%; L 0,00%

TOTAL PREMIUM: EUR 550m PENETRATION IN GDP: 1,9%

PREMIUM/CAPITA: EUR 74

KOSOVO 2010: NL 21,8%; L 100 %2009: NL 23,7%; L 100 %2008: NL 19,3%; L 0,00%



MONTENEGRO 2010: NL 15,1% 2009: NL 16,6%

2008: NL 18,7%

TOTAL PREMIUM: EUR 63m PENETRATION IN GDP: 2,0%PREMIUM/CAPITA: EUR 105

MACEDONIA 2010: NL 14,4% 2009: NL 16,6%

2008: NL 15,6%



INSURANCE

FORMER YU

Sava Re has cleaned the balance sheets & portfolios of its subsidiaries to prepare for future opportunities on these markets

22,3%

35,6%43,1% 45,9%

50,2%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

0,020,040,060,080,0

100,0120,0140,0160,0

2006 2007 2008 2009 2010

(mill

ion

EUR)

Consolidated GPW

Slovenia International International premium as % of total GPW


14

REGIONAL FOCUS ON THE SLOVENIAN DIRECT MARKET

INSURANCE

SLOVENIATHE SAVA RE GROUP

OUR MARKET SHARES MARKET PENETRATION & VOLUME 2010

SLOVENIA 2010: NL 4,4%; L 1,6%2009: NL 4,3%; L 1,6%2008: NL 4,2%; L 1,7%

TOTAL PREMIUM: EUR 2,1bn PENETRATION IN GDP: 5,8%

PREMIUM/CAPITA: EUR 1.047

Increase market share & focus on portfolio profitabilityWe will try to stabilise our presence on the Slovenian market

SAVA RE AFFILIATE:Insurance Company Maribor;

3rd biggest on Slovenian market;

GPW EUR 259,6mSava Re share 45,7%

https://www.zav-mb.si/



2010 WAS A GOOD YEAR

2010 – YEAR OF POSITIVE TURNAROUND

SAVA RE GROUP

- Increase in gross premiums in all business segments

- Adjusting reserving levels to Group policy

- Strengthening of agency networks

- Restructuring of investment portfolio led to positive investment return

- Implementation of systematic risk management approach and tools

SAVA REINSURANCE COMPANY

- Achieved strategic goal of balance between international and domestic portfolio

- Largest growth of foreign reinsurance premium achieved on Asian market

- Light loss year 2010 with improved combined ratio

- Long-term credit and financial strength rating of A- with a stable outlook reaffirmed

- Allocation of capital to subsidiaries to support further development & growth

- Positive investment return and restructuring of investment portfolio towards reducing market risks

16

17


Gross Premium Written = GPW

(1) Calendar-year basis

112,3 120,3 120,8

106,4119,7 125,8

10,911,4 12,5

0,0

50,0

100,0

150,0

200,0

250,0

300,0

2008 2009 2010

(mill

ion

EUR)

Consolidated GPW by operating segment

Reinsurance business Non - life business Life business

251,4 259,1229,6

18

( EUR ) Sava Re Group Sava Reinsurance Company2009 2010 2009 2010

Gross premiums written 251.416.588 259.103.050 147.082.330 142.861.784Year-on-year change 9,5% 3,1% 9,2% -2,9%International premium as % of total GPW 45,9% 50,2% 41,9% 50,0% Net incurred loss ratio1 68,0% 60,4% 75,8% 66,2%Net expense ratio2 35,2% 35,7% 29,8% 30,1%Net combined ratio33 103,2% 96,1% 105,5% 96,3% Realised investment return -1,4% 3,6% -2,3% 0,8% Profit/loss for the period -28.216.212 5.520.670 -12.598.645 7.193.724Comprehensive income -17.691.584 4.113.237 -3.744.882 6.143.048Net earnings / loss per share -3,01 0,59 -1,35 0,77 Total assets 560.711.611 578.385.408 404.105.057 418.350.613Change on 31 December previous year 4,7% 3,2% 1,2% 3,5% Shareholders’ equity 161.677.406 154.684.609 149.995.279 156.138.328Change on 31 December previous year -7,1% -4,3% -2,4% 4,1% Net technical provisions 277.337.473 307.179.072 144.578.495 156.415.674Change on 31 December previous year 22,2% 10,8% 18,9% 8,2% ROE (Net profit/loss to average equity) -16,8% 3,5% -8,3% 4,7% Share price at 31 December 13,83 8,00

Book value of shares 17,27 16,52 16,02 16,68

Market capitalisation 129.483.638 74.900.152


1) Net incurred loss ratio = net claims incurred / net premiums earned 2) Net expense ratio = (net aquisition cost + administrative costs) / net premiums earned3) Net combined ratio= (net claims incurred + net aquisition costs + administrative costs) / net premiums earned


SAVA RE GROUP

1) Net incurred loss ratio = net claims incurred / net premiums earned 2) Net expense ratio = (net aquisition cost + administrative costs) / net premiums earned3) Net combined ratio= (net claims incurred + net aquisition costs + administrative costs) / net premiums earned

20


22,3%

35,6%43,1% 45,9%

50,2%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

0,020,040,060,080,0

100,0120,0140,0160,0

2006 2007 2008 2009 2010

(mill

ion

EUR)

Consolidated GPW

Slovenia International International premium as % of total GPW

67,5%64,8% 63,1%

69,5%

61,1%

26,6%

33,8%36,5% 35,2% 35,7%

94,1%

98,6% 99,6%

104,7%

96,8%

92,0%

94,0%

96,0%

98,0%

100,0%

102,0%

104,0%

106,0%

25,0%

35,0%

45,0%

55,0%

65,0%

2006 2007 2008 2009 2010

Net ratios - Sava Re Group

Net incurred loss ratio Net expense ratio Net combined ratio

Net CRNet ERNet LR

INVESTMENT STRUCTURE - SAVA RE GROUP21

(EUR) 31 Dec 2008 31 Dec 2009 31 Dec 2010

Deposits and CDs 73.288.273 90.825.019 129.563.385

Government bonds 71.243.900 78.650.190 75.678.951

Corporate bonds 57.775.899 70.736.066 73.928.404

Shares 17.171.723 17.052.682 11.482.158

Mutual funds 35.299.560 30.627.902 24.158.534

Strategic shares 32.773.009 37.646.480 42.322.366

Other 16.760.036 10.244.391 6.915.298

Total 304.312.400 335.782.730 364.049.096

24,1% 27,0%35,6%

23,4%23,4%

20,8%

19,0%21,1%

20,3%5,6%

5,1%3,2%11,6%

9,1% 6,6%10,8% 11,2% 11,6%5,5% 3,1% 1,9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

31 Dec 2008 31 Dec 2009 31 Dec 2010

Deposits and CDs Government bonds Corporate bonds Shares

Mutual funds Strategic shares Other

EUR 304,3m EUR 335,8m EUR 364,0m

INVESTMENT RETURN OF SAVA RE GROUP

(EUR) 2008 2009 2010

Investment income 29.357.293 22.350.395 24.950.660

Investment expenses 33.239.644 23.701.131 10.235.493

Net investment income -3.882.351 -1.350.736 14.715.167

22

304,3

335,8

364,0

0,3%

-1,4%

3,6%

-2,0%

-1,0%

0,0%

1,0%

2,0%

3,0%

4,0%

270,0

280,0

290,0

300,0

310,0

320,0

330,0

340,0

350,0

360,0

370,0

31 Dec 2008 31 Dec 2009 31 Dec 2010

(mill

ion

EUR)

Invested assets Investment return


PLANS 2011


KEY ACTIONS IN 2011

Reinsurance

Diversifying and growing the reinsurance portfolio

Profitability of reinsurance portfolio

Capital adequacy(Solvency II)

Cost control

Upgrading risk control systems

Insurance

Profitability of insurance portfolio

Improving the underwriting process

Developing IT systems

Strengthening sales networks

24

STRATEGIC ORIENTATION

Reinsurance

Annual average growth on international markets

> 8%

Decreasing premium from Slovenia to mitigate

double exposure

Combined ratio of 95%

Insurance Slovenia

Tilia to achieve 5%-market share

Accelerated growth in life business

Seeking better governance solutions for ZM for both

strategic shareholders

Insurance W Balkan

Growth of non-life insurance business (organic growth)

Taking advantage of high growth potential in life

business

Focus on small and medium size risks

(consistent system of concluding treaties)

25

PLAN 2011

3,4% decrease in premium; Double investment return and expected improvement of loss

ratios (2010 better than long-term average)

Premium growth of 2,8%(non-life premium growth of 4,8%, life premium growth of over 40%,

decrease in reinsurance premium of 3,6%)

26

1) Net incurred loss ratio = net claims incurred / net premiums earned 2) Net expense ratio = (net aquisition cost + administrative costs) / net premiums earned3) Net acquisition cost = acquisition costs + change in diferred acquisition cost

Sava Re Group Sava Reinsurance Company

(EUR) 2010 Plan 2011 2010 Plan 2011

Net earned premiums 231.874.029 244.239.929 123.497.230 121.411.427

Gross premiums written 259.103.050 266.984.900 142.861.784 138.093.827

Net incurred loss ratio 60,4% 62,3% 66,2% 71,4%

Net expence ratio 35,7% 32,7% 30,1% 27,7%

Net combined ratio 96,1% 95,0% 96,3% 99,1%

Realised investment return 3,6% 3,9% 0,8% 1,5%

ROE (Net profit/loss to average equity) 3,5% 5,4% 4,7% 3,1%

MID TERM ROE

TARGET 8-10%

Documents

Pozavarovalnica Sava, d. d. Roadshow Stockholm, May 2011 SAVA RE GROUP AND SAVA REINSURANCE COMPANY RESULTS 2010