The Triglav Group Consolidates Its Presence in the Pension Insurance Market

In accordance with the Ljubljana Stock Exchange Rules and the applicable legislation, ZAVAROVALNICA TRIGLAV d.d., Ljubljana, hereby publishes the following notice:

Following a successful takeover procedure, Zavarovalnica Triglav d.d. acquired a majority shareholding in Skupna pokojninska družba d.d., increasing it from 30.14% to 66.65%. In line with its strategic guidelines, the Triglav Group has consolidated its presence in the pension insurance market through the takeover. Moreover, by acquiring the new subsidiary, it has assumed one of the leading roles in this market in Slovenia. At the end of June 2014, the newly acquired Skupna pokojninska družba d.d. ranked second among the eleven supplemental pension insurance providers in the Slovene market, whereas in terms of accumulated assets its market share stood at 11.9% and that of Zavarovalnica Triglav d.d. at 9.0%.

With a tighter integration into the Triglav Group, Skupna pokojninska družba d.d. obtained a financially sound owner with strong capital base, which can facilitate the company’s adaptation to anticipated changes in Slovenia's pension system and serve as a firm basis providing safety to several generations of policyholders. Previously, the company had three major shareholders with different (strategic or portfolio) approaches and interests. The Group believes that the new subsidiary will best develop with the participation of a strategic controlling shareholder, representing another step towards a more effective management of the company.

As a result of this takeover, the Triglav Group has consolidated the grounds for further activities aimed at creating opportunities in the Slovene pension insurance market. Due to the fact that the supplemental pension system in Slovenia is relatively poorly developed and the increasingly aging population further pressures on the public pension system are expected and also consequently the need to strengthen the second pension pillar. The respective market will grow depending on the changes in the existing pension system. The entire pension insurance market is expected to grow by attracting new policyholders and increasing premiums. The current supplemental pension premiums are too low to compensate for future relatively lower compulsory pension insurance benefits.

By acquiring a new subsidiary, i.e. a majority shareholding, another step was made to strengthen the presence of the Triglav Group in the pension insurance market, which is one of its strategic objectives. Furthermore, the Group believes that its stronger presence in the Slovene pension insurance market will help further consolidate its life insurance business (pension annuity).

This information will be published on the website of Zavarovalnica Triglav d.d. at www.triglav.eu as of 7 January 2015 and will remain available on the Company's public website for a period of at least five years.