Pozavarovalnica Sava dd : Sava Re Group Solvency and Financial Condition Report 2016

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, 1000 Ljubljana hereby announces the following:

In accordance with the requirements of the Slovenian and EU insurance legislation, Sava Re, d.d. hereby releases the Sava Re Group Solvency and Financial Condition Report 2016 (hereinafter: Group SFCR), as approved by the management board of Sava Re, d.d. with the consent of the Company's supervisory board.

The Group SFCR contains detailed information on the system of governance, key functions, risk management system and own risk and solvency assessment at the Group level. It also provides a detail overview of the Group's risk profile. The report contains information on the valuation of assets and liabilities for the purpose of demonstrating the Group's solvency. These are valued at fair value under Solvency II regulations. Furthermore, the report provides information on capital management and the levels of eligible own funds, the solvency capital requirement and the solvency ratio.

For the solvency calculation, the Sava Re Group uses the Solvency II standard formula. As at 31 December 2016, the Group held eligible own funds of € 423 million, all tier-one funds, and had a solvency capital requirement of € 207 million. This demonstrates the Group's capital adequacy, as evidence by a high solvency ratio of 204 %. The level of the solvency ratio is in line with the Group's rules and is currently just above the optimal range, which is set at between 170 % and 200 %.

The independent auditor Ernst & Young issued a report on the Group SFCR in accordance with the Decision on the additional audit review of insurance companies and additional auditor's report (Official Gazette of RS, no. 9/2016) issued by the Insurance Supervision Agency in accordance with the Slovenian Insurance Act (ZZavar-1).

The Group SFCR is attached hereto.