Pozavarovalnica Sava d d SAVA RE GROUP AND

Pozavarovalnica Sava, d. d. SAVA RE GROUP AND SAVA REINSURANCE COMPANY RESULTS 2010 Roadshow Stockholm, May 2011

Pozavarovalnica Sava, d. d. WHO WE ARE AND OUR PAST DEVELOPMENT Roadshow Stockholm, May 2011

4 DEVELOPMENT & GROWTH IN TIME 1991 1973 2003 DEVELOPMENT THROUGHOUT TIME Beginnings during Yugoslav socialist period 1973 – Starts as reinsurance department of Sava Insurance 1977 – Spin-off from Sava Insurance and incorporation under the name Reinsurance Community Sava 1990 – Reorganises as a joint-stock company under the new Slovenian Companies Act 1991 – Slovenia declares independence from Yugoslavia; transition from socialist system to market economy Consolidation of Sava Re’s position in Slovenia and crystallisation of ownership structure 1991 – 2% of reinsurance premiums coming from international markets; decision to expand in international reinsurance markets 1998 – Acquisition of Zavarovalnica Tilia; entry into Slovenian direct insurance market 1999 – Starts to increase minority stake in Zavarovalnica Maribor to 45, 79% as of today 2003 – Unallocated portion of share capital transferred to SOD, who becomes 99, 9% owner KEY STORY BEHIND DEVELOPING REINSURANCE BUSINESS INTERNATIONAL INWARDS PREMIUM FROM NIL IN 1973 TO NIL IN TIMES OF YUGOSLAV HYPERINFLATION TO 50, 0% IN 2010 OF NON-CONSOLIDATED REINSURANCE PREMIUM INCOME

5 DEVELOPMENT & GROWTH IN TIME 2004 2008 DEVELOPMENT THROUGHOUT TIME 2004 Acquisition-driven expansion to insurance markets of former Yugoslavia 2004 – Acquisition of a minority stake in Osiguranje Helios in Croatia, 2006 – sale of entire stake in Osiguranje Helios when there was an indirect change in control in the majority shareholder 2006 – Acquisition of majority stakes in Dukagjini (now renamed Illyria) and Sava osiguranje; entry into Kosovan and Serbian non-life insurance markets 2007 – Acquisition of majority stakes in Sava Tabak and Sava Montenegro, entry into Macedonian and Montenegrin non-life insurance markets 2008 KEY STORY BEHIND Expansion to life insurance business and return to Croatia 2008 – 100% owned greenfield Sava životno osiguranje a life insurance operation in Serbia 2008 – Now 100% owned greenfield Dukagjini Life (now renamed Illyria Life) in Kosovo 2009 – Acquisition of majority stakes in Velebit osiguranje and Velebit životno osiguranje; return to the Croatian non-life and life insurance market DEVELOPING INSURANCE BUSINESS STARTED AS A REINSURANCE COMPANY - NOW AN IMPORTANT REGIONAL INSURANCE GROUP (1) 2010 PREMIUM STRUCTURE: - 47% REINSURANCE PREMIUM - 48% NON LIFE INSURANCE PREMIUM - 5% LIFE INSURANCE PREMIUM _________________________________________________________________________ Note: (1) Consolidated premium income,

6 INTRODUCTION TO THE SAVA RE GROUP Overview 10 companies in reinsurance, non-life and life insurance business Reinsurance relations with numerous players worldwide Insurance operations in 6 markets of former Yugoslavia Total consolidated GPW of EUR 259, 1 m (1) Reinsurance (GPW: EUR 120, 8 m) Largest locally-based non-captive reinsurer in CEE No. 1 reinsurer in Slovenia (2) 37 years of presence in Slovenia and internationally 181 reinsurance clients Rated by S&P since 2005; current rating (November 2010) A- with a stable outlook Maribor Ljubljana Novo mesto Direct insurance (GPW: EUR 138, 3 m) Mostly non-life exposure, life insurance operated through Green-Fields Operating in direct insurance market since 1998 through Tilia Substantial long-term equity investment in 3 rd largest Slovenian insurer, Maribor with GPW of EUR 259, 6 m(3) Exposure to market potential in countries of former Yugoslavia through acquisition of 4 subsidiaries in 2006 -2007, establishment of 2 life companies in 2008 and acquisition of 2 subsidiaries in 2009 Kosovo _________________________________________________________________________ Notes: (1) As per December 31, 2010 (2) Market share measured on reinsurance GWP in Slovenia (3) As per December 31, 2010

7 WHO WE ARE TODAY – 3 KEY SEGMENTS REINSURANCE SLOVENIA INTERNATIONAL INSURANCE FORMER YU

8 OUR MARKETS THE SAVA RE GROUP SLOVENIA REINSURANCE Sava Re NON LIFE INSURANCE PREMIUM INCOME 2010 INDEX (10/09) Tilia Insurance Company (Composite Insurer) 99, 7% owned by Sava Re Tilia Insurance Company (Composit Insurer) R: EUR 120, 8 m NL: EUR 63, 7 m L: EUR 10, 2 m T: EUR 194, 7 m + 0, 4% + 2, 8% - 1, 5% + 1, 0% CROATIA Velebit osiguranje 56, 35% owned by Sava Re Velebit životno osiguranje 53, 35% owned by Sava Re NL: EUR 8, 5 m L: EUR 1, 3 m T: EUR 9, 8 m + 20, 3% - 8, 0% + 17, 3% SERBIA Sava osiguranje 99, 99% owned by Sava Re Sava životno osiguranje 99, 99% owned by Sava Re NL: EUR 15, 6 m L: EUR 0, 3 m T: EUR 15, 9 m + 17, 5% + 936, 8% + 19, 7% KOSOVO Illyria Wholly-owned by Sava Re Illyria Life Wholly-owned by Sava Re NL: EUR 13, 1 m L: EUR 0, 8 m T: EUR 13, 9 m + 9, 8% + 492, 2% + 14, 1% MONTENEGRO Sava Montenegro Wholly-owned by Sava Re NL: EUR 9, 7 m T: EUR 9, 7 m - 12, 6% MACEDONIA Sava Tabak 66, 7% owned by Sava Re NL: EUR 15, 2 m T: EUR 15, 2 m - 8, 6% - Established Company - Greenfields COVERING MOST OF THE FORMER YUGOSLAV MARKETS SLOVENIA – THE GROUP’S MOST IMPORTANT MARKET LIFE OPERATIONS IN EARLY STAGES R NL L T – reinsurance – non-life – total

9 OWNERSHIP STRUCTURE OF SAVA RE SOD (Slovenian Restitution Fund) 8. 0%2. 3% 11. 3% Banks 25. 0% Natural pesrons Insurance Co. & Pension Funds 15. 5% 19. 7%Investment Co. & Investment Funds 18. 2% Other financial Institutions Other Companies 5. 481 shareholders 75% free float P/B 1 = 0, 48 1) 2) 3) 4) 3% foreign investors POSR (listed on the LJSE since 14 June 2008) P/E 2 = 13, 56 P/B = price per share on 31 December 2010 / book value of shares on 31 December. 2010 P/E = price per share on 31 December 2010 / earnings per share in 2010 P/GWP = price per share on 31 December 2010 / GPW 2010 per share ROE = net profit/loss / average equity P/GPW 3 = 0, 29

Pozavarovalnica Sava, d. d. WHERE WE ARE GOING Roadshow Stockholm, May 2011

11 PERMANENT GROWTH CAGR 2008 – 2010 GPW million EUR (consolidated) To balance international and domestic portfolio Reinsurance 14, 8% Greenfield in Croatia, high growth rates on all markets, developing health in Kosovo Non-life insurance 12, 5% Life insurance Greenfields in Serbia, Kosovo and Croatia 7, 4%

12 OUR INVESTMENT STORY REINSURANCE GROWTH ON FOREIGN MARKETS Asian markets will be the source of our future growth

13 OUR INVESTMENT STORY THE WESTERN BALKANS HAVE GROWTH POTENTIAL THE SAVA RE GROUP OUR MARKET SHARES MARKET PENETRATION & VOLUME 2010 CROATIA 2010: NL 0, 92%; L 0, 39% 2009: NL 0, 75%; L 0, 40% 2008: NL 0, 54%; L 0, 31% TOTAL PREMIUM: EUR 1, 2 bn PENETRATION IN GDP: 2, 8% PREMIUM/CAPITA: EUR 284 SERBIA 2010: NL 3, 35%; L 0, 37% 2009: NL 2, 95%; L 0, 04% 2008: NL 2, 37%; L 0, 00% TOTAL PREMIUM: EUR 550 m PENETRATION IN GDP: 1, 9% PREMIUM/CAPITA: EUR 74 KOSOVO 2010: NL 21, 8%; L 100 % 2009: NL 23, 7%; L 100 % 2008: NL 19, 3%; L 0, 00% TOTAL PREMIUM: EUR 72 m PENETRATION IN GDP: 1, 7% PREMIUM/CAPITA: EUR 33 MONTENEGRO 2010: NL 15, 1% 2009: NL 16, 6% 2008: NL 18, 7% TOTAL PREMIUM: EUR 63 m PENETRATION IN GDP: 2, 0% PREMIUM/CAPITA: EUR 105 MACEDONIA 2010: NL 14, 4% 2009: NL 16, 6% 2008: NL 15, 6% TOTAL PREMIUM: EUR 105 m PENETRATION IN GDP: 1, 5% PREMIUM/CAPITA: EUR 53 Sava Re has cleaned the balance sheets & portfolios of its subsidiaries to prepare for future opportunities on t hese markets

14 OUR INVESTMENT STORY REGIONAL FOCUS ON THE SLOVENIAN DIRECT MARKET INSURANCE SLOVENIA THE SAVA RE GROUP SLOVENIA SAVA RE AFFILIATE: Insurance Company Maribor; 3 rd biggest on Slovenian market; GPW EUR 259, 6 m Sava Re share 45, 7% OUR MARKET SHARES 2010: NL 4, 4%; L 1, 6% 2009: NL 4, 3%; L 1, 6% 2008: NL 4, 2%; L 1, 7% MARKET PENETRATION & VOLUME 2010 TOTAL PREMIUM: EUR 2, 1 bn PENETRATION IN GDP: 5, 8% PREMIUM/CAPITA: EUR 1. 047 Increase market share & focus on portfolio profitability We will try to stabilise our presence on the Slovenian market

Pozavarovalnica Sava, d. d. 2010 WAS A GOOD YEAR Roadshow Stockholm, May 2011

16 2010 – YEAR OF POSITIVE TURNAROUND SAVA RE GROUP - Increase in gross premiums in all business segments SAVA REINSURANCE COMPANY - Achieved strategic goal of balance between international and domestic portfolio - Adjusting reserving levels to Group policy - Strengthening of agency networks - Restructuring of investment portfolio led to positive investment return - Implementation of systematic risk management approach and tools - Largest growth of foreign reinsurance premium achieved on Asian market - Light loss year 2010 with improved combined ratio - Long-term credit and financial strength rating of A- with a stable outlook reaffirmed - Allocation of capital to subsidiaries to support further development & growth - Positive investment return and restructuring of investment portfolio towards reducing market risks

17 2010 – YEAR OF POSITIVE TURNAROUND • International premium as % of total GPW (year 2010) 50, 2% • Net combined ratio (2010) 96, 1% • Premium growth in Asian markets in 2010 (compared to 2009) (1) • Realised investment return (2010) • Profit for the period (2010) Gross Premium Written = GPW (1) Calendar-year basis • ROE 190, 5% 3, 6% EUR 5, 5 m 3, 5%

18 2010 – YEAR OF POSITIVE TURNAROUND ( EUR ) Gross premiums written Year-on-year change International premium as % of total GPW Net incurred loss ratio 1 Net expense ratio 2 Net combined ratio 3 Realised investment return Profit/loss for the period Comprehensive income Net earnings / loss per share Total assets Change on 31 December previous year Shareholders’ equity Change on 31 December previous year Net technical provisions Change on 31 December previous year ROE (Net profit/loss to average equity) Share price at 31 December Book value of shares Market capitalisation 1) 2) 3) Sava Re Group 2009 2010 251. 416. 588 259. 103. 050 9, 5% 3, 1% 45, 9% 50, 2% 68, 0% 60, 4% 35, 2% 35, 7% 103, 2% 96, 1% -1, 4% 3, 6% -28. 216. 212 5. 520. 670 -17. 691. 584 4. 113. 237 -3, 01 0, 59 560. 711. 611 578. 385. 408 4, 7% 3, 2% 161. 677. 406 154. 684. 609 -7, 1% -4, 3% 277. 337. 473 307. 179. 072 22, 2% 10, 8% -16, 8% 3, 5% 17, 27 16, 52 Net incurred loss ratio = net claims incurred / net premiums earned Net expense ratio = (net aquisition cost + administrative costs) / net premiums earned Net combined ratio= (net claims incurred + net aquisition costs + administrative costs) / net premiums earned Sava Reinsurance Company 2009 2010 147. 082. 330 142. 861. 784 9, 2% -2, 9% 41, 9% 50, 0% 75, 8% 66, 2% 29, 8% 30, 1% 105, 5% 96, 3% -2, 3% 0, 8% -12. 598. 645 7. 193. 724 -3. 744. 882 6. 143. 048 -1, 35 0, 77 404. 105. 057 418. 350. 613 1, 2% 3, 5% 149. 995. 279 156. 138. 328 -2, 4% 4, 1% 144. 578. 495 156. 415. 674 18, 9% 8, 2% -8, 3% 4, 7% 13, 83 8, 00 16, 02 16, 68 129. 483. 638 74. 900. 152

Pozavarovalnica Sava, d. d. SAVA RE GROUP

20 2010 – YEAR OF POSITIVE TURNAROUND 1) 2) 3) Net incurred loss ratio = net claims incurred / net premiums earned Net expense ratio = (net aquisition cost + administrative costs) / net premiums earned Net combined ratio= (net claims incurred + net aquisition costs + administrative costs) / net premiums earned

21 INVESTMENT STRUCTURE - SAVA RE GROUP Investment Structure Invested assets (EUR) Deposits and CDs Government bonds Corporate bonds Shares Mutual funds Strategic shares Other Total 31 Dec 2008 73. 288. 273 71. 243. 900 57. 775. 899 17. 171. 723 35. 299. 560 32. 773. 009 16. 760. 036 304. 312. 400 31 Dec 2009 90. 825. 019 78. 650. 190 70. 736. 066 17. 052. 682 30. 627. 902 37. 646. 480 10. 244. 391 335. 782. 730 31 Dec 2010 129. 563. 385 75. 678. 951 73. 928. 404 11. 482. 158 24. 158. 534 42. 322. 366 6. 915. 298 364. 049. 096

22 INVESTMENT RETURN OF SAVA RE GROUP (EUR) 2008 2009 2010 Investment income 29. 357. 293 22. 350. 395 24. 950. 660 Investment expenses 33. 239. 644 23. 701. 131 10. 235. 493 Net investment income -3. 882. 351 -1. 350. 736 14. 715. 167

Pozavarovalnica Sava, d. d. PLANS 2011 Roadshow Stockholm, May 2011

24 KEY ACTIONS IN 2011 Reinsurance Insurance Diversifying and growing the reinsurance portfolio Profitability of reinsurance portfolio Improving the underwriting process Capital adequacy Developing IT systems (Solvency II) Cost control Upgrading risk control systems Strengthening sales networks

25 STRATEGIC ORIENTATION Reinsurance Insurance Slovenia Insurance W Balkan Annual average growth on international markets > 8% Tilia to achieve 5%-market share Growth of non-life insurance business (organic growth) Decreasing premium from Slovenia to mitigate double exposure Combined ratio of 95% Accelerated growth in life business Seeking better governance solutions for ZM for both strategic shareholders Taking advantage of high growth potential in life business Focus on small and medium size risks (consistent system of concluding treaties)

26 PLAN 2011 Sava Re Group (EUR) Plan 2011 2010 Plan 2011 Net earned premiums 231. 874. 029 244. 239. 929 123. 497. 230 121. 411. 427 Gross premiums written 259. 103. 050 266. 984. 900 142. 861. 784 138. 093. 827 Net incurred loss ratio 60, 4% 62, 3% 66, 2% 71, 4% Net expence ratio 35, 7% 32, 7% 30, 1% 27, 7% Net combined ratio 96, 1% 95, 0% 96, 3% 99, 1% Realised investment return 3, 6% 3, 9% 0, 8% 1, 5% ROE (Net profit/loss to average equity) 3, 5% 5, 4% 4, 7% 3, 1% MID TERM ROE TARGET 8 -10% 1) 2) 3) 2010 Sava Reinsurance Company Premium growth of 2, 8% (non-life premium growth of 4, 8%, life premium growth of over 40%, decrease in reinsurance premium of 3, 6%) Net incurred loss ratio = net claims incurred / net premiums earned Net expense ratio = (net aquisition cost + administrative costs) / net premiums earned Net acquisition cost = acquisition costs + change in diferred acquisition cost 3, 4% decrease in premium; Double investment return and expected improvement of loss ratios (2010 better than long-term average)