Pozavarovalnica Sava, d. d.

Financial ReportThree Months to 31 March 2012

(1-3 2012)

May 2012

1-3 2012 Consolidated Results3

Sava Re Group 1-3 2011 1-3 2012 Plan 2012% Change

1-3 12/1-3 11Plan/actual

Gross premiums written (EUR) 82.992.817 92.378.003 271.148.318 11,3% 34,1%

Net profit (EUR) 1.884.792 3.690.474 10.588.677 95,8% 34,9%

Net combined ratio S&P 99,9% 97,8% 97,8% -2,1 p.p.

ROE 1,7% 2,4% 6,6% +0,7 p.p. -4,2 p.p.  31.12.2011 31.3.2012 31.12.2012    

Equity (EUR) 148.080.050 158.712.385 166.426.254 7,2% 95,4%

42%

28%

22%

% plan

% growth

+5%

+2%

+20%

+11% 34,1%

1-3 2012 Results: Sava Reinsurance Company

4

Sava Reinsurance Company 1-3 2011 1-3 2012 Plan 2012% Change

1-3 12/1-3 11Plan/actual

Gross premiums written (EUR) 50.289.311 58.783.712 141.645.535 16,9% 41,5%

Net profit (EUR) 735.728 1.707.759 9.597.535 132,1% 17,8%

Net combined ratio S&P 97,6% 96,5% 97,3% -1,1 o.t. -0,8 o.t.ROE 0,5% 1,1% 5,7% +0,6 o.t. -4,6 o.t.  31.12.2011 31.3.2012 31.12.2012    Equity (EUR) 158.454.528 164.809.973 172.376.906 4,0% 95,6%

44%

40%

42%

% plan

% growth

+17%

+26%

+8%

Pozavarovalnica Sava, d. d.

Financial ReportSava Re Group

1-3 2012

The Sava Re Group

6

Zavarovalnica MariborSlovenia

Sava osiguranjeSerbia

Sava osiguruvanjeMacedonia

IllyriaKosovo

Sava MontenegroMontenegro

Zavarovalnica TiliaSlovenia

Moja naložbaSlovenia

100.0%

81.84%

99.99%

20.0%

48.68%

99.71%

100.0%

20.0%

5.0%

Illyria LifeKosovo

100.0%

Velebit uslugeCroatia

Sava životno osiguranjeSerbia

Velebit životnoosiguranje

Croatia

Velebit osiguranjeCroatia

51.14%59.19%

99.99%

Associatecompany

Subsidiarycompany

100.0%

Bro DilMacedonia

100.0%

100.0% Illyria HospitalKosovo

Sava Reinsurance Company

3.85%

8.12%

100.0% Sava carMontenegro

Major Items of the Consolidated Income Statement

7

*The U/W result and investment result do not include figures relating to policyholders who bear the investment risk

(EUR) 1-3 2011 1-3 2012 Y-o-y %

chg

Net earned premiums 55.008.138 57.391.840 4,3%

Net claims incurred 32.269.763 35.444.747 9,8%

Change in other net technical provisions (+/-) -684.282 -325.692 52,4%

Commission income 448.673 580.450 29,4%

Expenses for bonuses and rebates 217.422 38.741 -82,2%

Net operating expenses 19.619.488 19.012.283 -3,1%

Underwriting result 2.665.856 3.150.827 18,2%

Income from investments in associates 1.454.857 995.642 -31,6%

Investment income 3.198.538 4.884.044 52,7%

Expenses for financial assets and liabilities 1.629.697 1.707.001 4,7%

Net investment income 3.023.698 4.172.685 38,0%

Other income 801.402 911.718 13,8%

Other expenses 3.386.463 2.756.616 -18,6%

Result of other items -2.585.061 -1.844.898 28,6%

Income tax expense 670.754 1.403.029 109,2%

Net profit for the period 1.884.792 3.690.474 95,8%

1-3 2012 Results: Premiums & Ratios

8

1-3 2012 Results by Operating Segment9

1-3 2012 Results: Consolidated Expenses

10

(EUR) 1-3 2011 1-3 2012% Change

1-3 12/1-3 11

NET OPERATING EXPENSES 19.170.816 18.431.834 -3,9%

Acquisition costs including change in DAC 10.248.517 10.467.222 2,1%

Acquisition costs 11.804.351 13.699.133 16,1%

Change in DAC -1.555.834 -3.231.911 107,7%

Other operating expenses 9.370.972 8.545.062 -8,8%

Income from reinsurance commission -448.673 -580.450 29,4%

1-3 2012: Sava Re Group Investments

11

* The “Other” item comprises loans, land and buildings and other investments.

Decrease in government bonds and temporary increase in deposits due to capital market conditions (increase in

bond prices)

388,0 million EUR

371,8 million EUR

+2,3%

-45,1%

-4,8%

+0,9%

-5,0%

+22,3%

+5,2%

+3,8%

Investments by issuer credit rating

13

Investments by region

Investments by IFRS categories

1-3 2012 Results: Investments of the Sava Re Group

Investments by issuer

14

Issuer: government

Issuer: financial institutions

The "Other" item includes: business, investment property and strategic investments.Financial institutions include: banks incl. savings banks, insurance companies, mutual funds and other financial institutions.

1-3 2012 Results: Investments of the Sava Re Group

14

(EUR) 1-3 2012 1-3 2011 Index

Investment income 5.879.686 4.653.395 126,4

- Income from investments in associates 995.642 1.454.857 68,4

- Interest income 3.386.942 2.901.370 116,7

- Other financial income 1.497.102 297.168 503,8

Investment expenses 1.707.001 1.629.697 104,7

- Impairment of investments 136.098 889.359 15,3

- Interest expenses 462.956 437.982 105,7

- Other investments expenses 1.107.947 302.356 366,4

Net investments income (inv. Income - inv. expenses) 4.172.685 3.023.698 138,0

Average investments 387.733.312 375.899.771 103,1

Investment return including finance costs % 4,3 3,2 133,8

Investment return excluding finance costs % 4,8 3,7 129,8

1-3 2012: Sava Re Group Investments income and expenses

Pozavarovalnica Sava, d. d.

Sava Reinsurance Company 1-3 2012

Major Items of the Income Statement – Sava Reinsurance Company

16

Note: Investment income: included are deposits with cedants of Sava Reinsurance Company

Sava Reinsurance Company (EUR) 1-3 2011 1-3 2012% Change

1-3 12/1-3 11

Net earned premiums 27.023.454 30.288.516 12,1%

Net claims incurred 16.706.460 19.536.875 16,9%

Change in other net technical provisions (+/-) 0 0  

Other technical income 355.807 503.114 41,4%

Expenses for bonuses and rebates 10.931 8.040 -26,4%

Net operating expenses 9.689.594 10.023.115 3,4%

Underwriting result 972.276 1.223.600 25,8%

Income from investments in subsidiaries and associates 923 0 -100,0%

Investment income 1.844.107 2.483.942 34,7%

Expenses for financial assets and liabilities 1.424.973 1.419.146 -0,4%

Net investment income 420.057 1.064.796 153,5%

Other income 246.348 293.874 19,3%

Other expenses 567.199 444.312 -21,7%

Result of other items -320.851 -150.438 53,1%

Income tax expense 335.754 430.199 28,1%

Net profit for the period 735.728 1.707.759 132,1%

Key ratios for the reinsurance portfolio

17

1-3 2012 Results: Operating Expenses

18

(EUR) 1-3 2011 1-3 2012% Change

1-3 12/1-3 11

NET OPERATING EXPENSES 9.333.787 9.520.001 2,0%

Acquisition costs including change in deferred acquisition costs 8.226.430 8.442.818 2,6%

- Acquisition costs 9.478.164 11.290.792 19,1% - Change in deferred acquisition costs

-1.251.734 -2.847.974 127,5%

Other operating expenses 1.463.164 1.580.297 8,0%

Income from reinsurance commission and reinsurance contract profit participation -355.807 -503.114 41,4%

1-3 2012 Results: Statement of Financial PositionSava Reinsurance Company (EUR) 31.12.2011 31.3.2012

% Change1-3 12/1-3 11

ASSETS 417.051.463 458.481.420 9,9%Financial investments in associate companies

114.423.243 116.860.800 2,1%

Financial investments 208.748.194 215.039.211 3,0%

Reinsurers' share of technical provisions 17.615.761 23.780.051 35,0%

Receivables 59.848.462 85.406.470 42,7%EQUITY AND LIABILITIES 417.051.463 458.481.420 9,9%Equity 158.454.529 164.809.974 4,0%Subordinated liabilities 31.220.817 31.222.675 0,0%Technical provisions 183.891.042 213.558.797 16,1%Liabilities from operating activities 42.059.350 47.654.843 13,3%Other liabilities 1.281.266 1.091.166 -14,8%

+56%

+5%+4%

(EUR) 1-3 2011 1-3 2012 Y-o-y % chg

Available solvency margin 41.144.011 44.338.582 7,8%Required solvency margin 20.192.597 23.825.628 18,0%Surplus of available over required 20.951.414 20.512.954 -2,1%

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