Monday, 18/03/2013

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

The rating agency Standard and Poor's (S&P) put Sava Re on its negative watch list (BBB+) in December 2012. This was due to the acquisition of 50.99 percent in Zavarovalnica Maribor (ZM). According to S&P, Sava Re could benefit significantly from this transaction, which, however, carries an execution risk.

After its regular periodic review, S&P decided to keep Sava Reon its negative watch list (CreditWatch with negative implications). In the next three months, it intends to resolve the CreditWatch placement of the reinsurance company. By then, it anticipates that Sava Re will have executed the capital increase, which will give S&P a clearer understanding of Sava Re's ability to acquire the remaining shares in ZM from Slovenska odškodninska družba (SOD). S&P could lower Sava Re's rating by one notch if the capital increase is only partially successful or unsuccessful or if ZM's integration weakens the company's consolidated capital adequacy.

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