Pursuant to the Rules of the Ljubljana Stock Exchange, d.d., Ljubljana and the Market in Financial Instruments Act, Pozavarovalnica Sava d.d. ('Sava Reinsurance Company'), Dunajska 56, 1000 Ljubljana, hereby announces the following:

In its session of 6 April 2016, the supervisory board of Sava Reinsurance Company approved the Audited Annual Report of the Sava Re Group and Pozavarovalnica Sava d.d. 2015 and the proposed agenda for the notice of the 31st general meeting of shareholders.

The supervisory and management boards drew up a proposal for the general meeting providing for a dividend of € 0.80 gross per share, of which € 0.65 gross per share would comprise the regular dividend (representing a 18 % increase compared to the 2014 dividend) and € 0.15 gross per share would comprise an extraordinary dividend.

The Company has prepared the proposal of the level based on:

  1. the amount of surplus of available solvency margin over the required solvency margin under Solvency I at 31 December 2015;
  2. the estimated surplus of available solvency margin over the required solvency margin under Solvency II at 31 December 2015;
  3. the capital models of the rating agencies S&P and A.M. Best
  4. the adopted 2016 financial plan of the Sava Re Group.

In the future, the management board will strive for stable growth of the regular dividend and only propose an extraordinary dividend if deemed appropriate in terms of efficient capital allocation.

The proposed dividend is in line with the dividend policy that the Company published on 9 March 2015: Sava Reinsurance Company will pay out dividends in the amount of approximately 30 % of the net profit of the Sava Re Group (consolidated profit) with the management board making adjustments to their proposal for dividend payout taking into account the Company's capitalization, new development projects to engage additional capital, capital requirements for the support of organic growth and other major factors that affect the financial position of the Company.

In addition, in 2015 Sava Reinsurance Company returned capital to its shareholders in the form of own shares repurchases. In 2015 it repurchased own shares in a total value of € 204,324.04.

This announcement will be available on the Company's website at www.sava-re.si, at least five years from the date of the announcement.

Pozavarovalnica Sava d.d. issued this content on 07 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 07 April 2016 13:51:25 UTC

Original Document: http://www.sava-re.si/en/media-centre/news/1376/proposed-dividend-for-pozavarovalnica-sava-d-d-shareholders/