Pozavarovalnica Sava (POSR) investor relations material

Executive summary

• Business volume grew 10.3% year-over-year to €672.5m, driven by growth in all insurance segments and strong investment returns.

• Net profit declined 3.6% year-over-year to €55.6m, mainly due to higher natural catastrophe claims, though higher investment income partially offset losses.

• Return on equity was 14.1%, exceeding the 2026 plan target of 12%.

• Solvency ratio improved to 219–223%, well above regulatory requirements.

• S&P Global Ratings upgraded the stand-alone credit profile to 'a+' and affirmed the A+ financial strength rating.

Financial highlights

• Combined ratio increased to 90.7% from 86.0% year-over-year, mainly due to higher claims from severe weather events.

• Net profit of €55.6m, down 3.6% year-over-year.

• Finance result surged 136.9% year-over-year due to positive fair value movements and higher investment rates.

• Net investment income increased to €26.3m, with a rate of return of 3.0%.

• Assets under management increased 16.7% to €3,940.1m.

Outlook and guidance

• Business volume, combined ratio, and return on equity all exceeded 2026 plan targets for the first half.

• Management expects to achieve the 2026 business plan if claims experience remains within expectations, but the third quarter is typically most affected by natural catastrophes.

• Dividend policy targets a payout of 35%-45% of net profit.