Pozavarovalnica Sava (POSR) investor relations material

Executive summary

• Business volume rose 8.7% year-over-year to €357.2m, driven by growth in all insurance segments and increased contract numbers.

• Net profit increased 1.1% to €31.2m, with equity up 3.5% to €768.6m and return on equity at 15.7%.

• Combined ratio increased to 87.2% due to higher natural catastrophe claims, especially in Slovenia and Croatia, but remains favorable.

• Finance result surged 121% year-over-year, driven by higher-rate investments and portfolio optimization.

• Solvency ratio remained strong at 218%-224%, well above regulatory requirements.

Financial highlights

• Gross written premiums grew to €357.2m (+8.7% year-over-year).

• Profit before tax was stable at €39.2m, with segmental shifts: reinsurance and life EU up, non-life EU and non-EU down.

• Net investment income rose to €10.8m (+28.4%), with a rate of return of 2.5%.

• Dividend of €2.75 per share approved for 2025, up 22.2% from prior year, to be paid in June 2026.

• Investment portfolio reached €1,787.6m (+1.3% from year-end 2025).

Outlook and guidance

• Business volume growth and combined ratio both exceeded 2026 plan targets.

• Return on equity of 15.7% surpassed the >12% plan.

• Net profit on track to exceed €95m for the year.

• Achieved 30% of planned business volume and 32.9% of the lower end of full-year net profit target.

• No change to 2026 business plan guidance; significant uncertainty expected to persist due to geopolitical risks.