Unaudited Report of Triglav Group and Zavarovalnica Triglav for H1 2021

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

Triglav Group posted a total of EUR 731.1 million in consolidated gross written premium, up by 9% relative to the same period last year, and achieved premium growth in all markets and in all three insurance segments. The volume of assets managed in mutual funds and discretionary mandate assets increased by 20% to EUR 1.392 million compared to the 2020 year-end. Profit before tax in the first six months amounted to EUR 56.2 million, up by 39% relative to the same period last year and 35% higher than in the first six months of 2019 (the year before the COVID-19 pandemic). Taking into account the business conditions anticipated until the end of the year, Triglav Group estimates that its annual profit before tax will be within the planned range.

PROFITABLE OPERATIONS. Triglav Group earned a consolidated profit of EUR 56.2 million before tax in the first half of 2021, which is 39% more than in the same period last year and 35% more than in the year before that (in the corresponding period in the year before the COVID-19 pandemic). Profit from non-life insurance rose by 23% to EUR 42.6 million, while profit from life and pension insurance and health insurance amounted to EUR 5.0 million and EUR 5.2 million respectively. The operating profit of the Group's non-insurance members reached EUR 3.5 million. Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: “Triglav Group is focused on the set strategic guidelines and, as a team of over 5,300 employees, we are strongly committed to our sustainable orientation. We are satisfied with the results achieved in the first half of the year. The underwriting results are very good and the management of clients’ assets is successful, while the result from the return on investment is lower, which is expected due to the interest rate situation. Taking this into account and the business conditions anticipated until the end of the year, we estimate that we will achieve the planned annual profit of EUR 85–95 million.”

UNDERWRITING ACTIVITIES. Backed by its underwriting discipline, Triglav Group achieved a 9% increase in consolidated gross written premium compared to the same period last year (EUR 731.1 million). Premium growth was recorded in all markets and in all three insurance segments. In Slovenia it stood at 7% (4 percentage points above the market) and in markets outside Slovenia it was 16%. Non-life insurance premium increased by 10%, life and pension insurance premium by 9% and health insurance premium by 1% relative to the corresponding period last year.

Gross claims paid totalled EUR 347.6 million, up by 5% compared to the same period last year and by 4% compared to the year before that. Their growth resulted from portfolio growth in all insurance segments over the last few years and the claims paid for which adequate provisions were already made by the Group at the end of last year (especially claims related to the earthquakes in Croatia). In contrast to the first quarter, major CAT events were observed in the second quarter, with an estimated value of EUR 6 million. The Group’s combined ratio in non-life and health insurance was favourable, standing at 89.6% as a result of an improved claims ratio. As at 30 June 2021, the Group allocated EUR 3,221.3 million to gross insurance technical provisions, up by 6% relative to the 2020 year-end. Andrej Slapar, President of the Management Board of Zavarovalnica Triglav, said: "When creating insurance technical provisions, we take into account the expected situation with due caution. Despite the growth in gross claims paid in the first six months of 2021, we observed a lower frequency of claims in specific insurance classes due to occasional restrictions related to the COVID-19 pandemic. We expect full normalisation of the business environment, thus in some insurance classes, such as health and motor vehicle insurance, we formed additional provisions, whereas in life insurance we formed fewer provisions than in the first half of last year.”

THE INVESTMENT PORTFOLIO AND A HIGHER VOLUME OF ASSETS UNDER MANAGEMENT. Also this year, low interest rates are affecting the rates of return on Triglav Group's extensive investment portfolio worth EUR 3,557.6 million, as bond investments comprise the majority of investments (71%). The Group did not make any significant changes to investing and the structure of the entire portfolio. This year's situation in the capital markets and net inflows had a positive effect on the management of clients' assets in mutual funds and discretionary mandate assets, which the Group carries out via Triglav Skladi. Assets reached EUR 1,392 million, an increase of 20% compared to the 2020 year-end.

SUSTAINABILITY. Triglav Group follows its adopted commitment to sustainability (ESG), which outlines its development guidelines and the integration of sustainability into its business model. The monitoring of sustainable risks and opportunities is included in asset management and in the range of insurance-investment products and services; in addition, the share of sustainable investment classes has been increasing in line with the European Green Deal’s goal of a climate neutral Europe. With respect to the insurance business, the Group provides products designed to actively manage risks related to climate change, the more efficient use of energy and its production from renewable sources and sustainable mobility.

The half-year financial report of Triglav Group and its parent company and the presentation for investors are enclosed hereto.

This information will be published on the website of Zavarovalnica Triglav d.d. at www.triglav.eu as of 17 August 2021 and will remain available on the Company’s public website for a period of at least ten years.