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7 August 2023

Statement on the first estimate of the impact of storm and flood claims in Slovenia on the Sava Insurance Group

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, Ljubljana, makes the following announcement:

In recent weeks, Slovenia has been hit by a series of storms and floods that have caused substantial and material damage, the most devastating of which occurred on 4 and 5 August.
Similar developments have taken place in neighbouring markets where the Group is present.

Our policyholders are urged to first ensure their own safety and not to report claims until the situation is under control. The Group’s insurers will make all their human and technological resources available to ensure that our policyholders’ claims are settled. As claims are settled quickest when reported online, we encourage all policyholders to visit their insurer’s website where possible and complete the online claim form. Alternatively, they can always contact our agents or personnel for assistance. Over the coming weeks, we will focus all our efforts on speeding the settlement of claims, and providing every possible support and assistance to our policyholders. At times like these, it is particularly important that we stand by our policyholders, and that we live up to our mission.

The Sava Insurance Group has adequate financial resources, as well as reinsurance cover, for natural catastrophe claims such as these, which ensures timely claims payments to our policyholders and allows the Group to continue to maintain a strong and stable financial position.

It will not be possible to assess the incurred claims until the situation is fully contained. However, based on Sava’s exposure models, which also simulate the probable claims payments, we now estimate that the impact of the recent events on the operating result of the Sava Insurance Group, taking into account the reinsurance cover in place, will be in the range of approximately EUR 20 million to EUR 25 million. This is a preliminary estimate and will be subject to further review in the coming weeks.

The impact of claims that Sava Re will receive in its reinsurance business is expected primarily in the Austrian, Croatian and Serbian markets. Although it is not yet possible to estimate the amount of claims, we estimate that the impact will be less material than that caused by the natural catastrophes in Slovenia.

While the Sava Insurance Group’s performance in the first half of 2023 was successful, with no major loss events or negative impact on the operating result, enabling the Group to reach already over 70% of the full-year plan for 2023 by the end of the first half of the year, the third quarter will be materially affected by the aforementioned events. The Group includes in its projected results for the year an amount for expected catastrophe claims, based on our normal claims experience from our long-standing historical claims statistics. These events represent a significant variance from normal claims experience, with more catastrophe claims occurring earlier in this financial year.

A more comprehensive expected total cost of these events will be provided in the Financial Report for January–June 2023, to be published on 25 August 2023.

The Sava Insurance Group has the financial resources to deal with these unprecedented events. We are fully committed to ensuring our valued policyholders are “never alone” as we support them in this difficult time.