ADRIA REGION HOME MARKETS OF THE TRIGLAV GROUP Mr. Andrej Slapar President of the Management Board East Capital Summit, Belgrade, June 2014
TRIGLAV GROUP Key Features Position The leading insurance/financial group in Slovenia and in the Adria region. Market presence in 7 countries and 8 markets Triglav Group Parent company Zavarovalnica Triglav d.d. 37 subsidiaries 6 associated companies 5.368 employees Ratings S&P rating A-/stable outlook AM Best rating A-/stable outlook Core business Insurance - Non-life - Life - Supplementary pensions - Health - Reinsurance Third-party asset management - Mutual funds - Investment companies - Investment holdings - Real Estate 2
INVESTMENT STORY OF THE TRIGLAV GROUP From high growth and fast expansion to profitable operations En route to 2017: Focus on profitability, safety and selective expansion of the Group Focus on insurance as the core business, profitability and safety of operations. Prudent management of business and financial risks. Transfer of knowledge within the Group. Compliance with Solvency II requirements. The Triglav Group plans future growth and development in target markets. Expansion/consolidation on the existing markets. Careful market penetration in new insurance segments. Fast growth in the markets of former Yugoslavia Limited growth opportunities in the Slovene insurance market Favourable growth opportunities in the insurance markets of the former Yugoslavia with great development potential market penetration in seven countries of the former Yugoslavia. One of the leading insurance/financial groups in South-East Europe The leading insurence company in Slovenia starts growing in 2000 Fast growth and development in Slovenia, mainly in life insurance Introduction of pension insurance Already present in the markets of Slovenia, Croatia, the Czech Republic and Montenegro 3
MARKET SHARES OF THE TRIGLAV GROUP IN 2013 Triglav Group ranks first in Adria region UNIQA GRAWE ALLIANZ DUNAV VIG GENERALI VZAJEMNA AGRAM ADRIATIC SAVA CROATIA TRIGLAV 3,0% 3,2% 3,9% 3,9% 4,8% 6,1% 6,4% 7,1% 7,4% 9,1% 9,8% 20,0% 0% 5% 10% 15% 20% 25% Market share in Adria region 2013 (in %) 4
THE CEE S INSURANCE MARKET IN 2013 The economic crises in Slovenia and Croatia, weak economic growth in other countries. The economic downturn, unemployment, a decline in purchasing power, political instability in some areas, as a result of all this, declined demand for insurance products. In the structure of total written premium in the region, the largest segment remained motor liability insurance, although the share of life insurance products increased in 2013. 5
TRIGLAV GROUP MARKETS IN Q1 2014 (ADRIA region) Leading position in Slovenia, Montenegro and Macedonia Slovenia: Zavarovalnica Triglav d.d., Triglav Zdravstvena zavarovalnica d.d. Market position: 1 Market development: Insurance penetration (2012): 5.8% Insurance density (2012): 971 EUR per capita Insurance market growth index (2013): 95.6 Croatia: Triglav Osiguranje d.d., Zagreb Market position: 9 Market development: Insurance penetration (2012): 2.7% Insurance density (2012): 271 EUR per capita Insurance market growth index (2013): 100.4 6
TRIGLAV GROUP MARKETS IN Q1 2014 (ADRIA region) Leading position in Slovenia, Montenegro and Macedonia Serbia: Triglav Osiguranje a.d.o., Belgrade Bosnia and Herzegovina: Triglav Osiguranje, Sarajevo d.d., Triglav Osiguranje, Banja Luka a.d. Market position (2013): 8 Market development: Insurance penetration (2012) : 1.9% Insurance density (2012) : 75 EUR per capita Insurance market growth index (2013): 102.9 Market position: 3 Market development: Insurance penetration (2012): 1.9% Insurance density (2012): 67 EUR per capita Insurance market growth index (2013): 103.5 7
TRIGLAV GROUP MARKETS IN Q1 2014 (ADRIA region) Leading position in Slovenia, Montenegro and Macedonia Montenegro: Lovćen osiguranje a.d. & Lovćen životna osiguranja a.d. Macedonia: Triglav Osiguruvanje a.d., Skopje Market position: 1 Market development: Insurance penetration (2012): 2.0% Insurance density (2012): 108 EUR per capita Insurance market growth index (2013): 108.8 Market position NL (Q3 2013): 1 Market development: Insurance penetration (2012): 1.5 % Insurance density (2012): 55 EUR per capita Insurance market growth index (2013): 104.2 8
GPW per capita (v USD) GPW per capita (v USD) DEVELOPMENT OF INSURANCE MARKETS IN THE REGION GDP growth 4.000 and low insurance density key growth drivers 3.000 Year 2002 2.000 EU 1.000 0 UKR SLO MCD ROM POL CRO CZR SER BUL 1.000 10.000 100.000 GDP per capita (v USD) 4.000 3.000 Year 2012 EU 2.000 1.000 0 SLO CRO CZR MCD BUL UKR ROM POL SER 1.000 10.000 100.000 GDP per capita (v USD) 9
LONG TERM PROSPECTIVENESS High catch-up potential Insurance density 2012 in EUR 1.971 2x 971 3x 581 5x 384 7x 271 17x 18x 18x 24x 26x 29x 36x 37x 114 109 108 83 75 67 55 53 EU - 27 SLO CZR POL CRO TUR BUL MN ROM SER BIH MCD UKR Life Non-Life Relatively lower density creates opportunities Higher future demand for existing insurance products Development and growth in sales of new and more sophisticated insurance products Expected changes in regulation: pension, health, tax 10
THE STRATEGY OF TRIGLAV GROUP 2013-2017 Moderate expansion with focus on profitability The mission and vision of the Triglav Group will maintain its focus on the profitability and safety of operations, thus BUILDING A SAFER FUTURE. Triglav Group Goals for 2017 Key business pillars are insurance and asset management. Strategic objectives for the 2013-2017 period: 1. profitable operations and increasing the value of the Triglav Group; 2. client orientation; 3. simplification of business processes and cost efficiency, 4. achieving adequate growth and profitability rates on key markets and maintaining efficient corporate governance of companies within the Triglav Group. 11
THE STRATEGY OF TRIGLAV GROUP We are and will remain a leading insurance and finance group in the CEE. Triglav Group Goals for 2017 Return on equity (end of strategic period target): above 10% Profitable operation of all subsidiaries Net combined ratio: 95% stable On the Slovene market, focus on profitability and maintaining the largest market share (special attention to health and pension insurance products). Expansion of the Triglav Group: Further growth and development in target markets in South-East Europe by winning at least a 10% market share (organic growth, growth through acquisitions is not to be excluded). 12
DISCLAIMER The information, statements or data contained herein has been prepared by Triglav Corporate officers. Zavarovalnica Triglav, d.d., or any member of Triglav Group, or any Zavarovalnica Triglav employee or representative accepts no responsibility for the information, statements or data contained herein or omitted here from, and will not be liable to any third party for any reason whatsoever relating to the information, statements or data contained herein or omitted here from. Such information, statements or data may not be prepared according to the same standards and requirements than the information, statements or data included in Triglav s own reports and press releases are prepared to, and accordingly the level of information and materiality and nature of the disclosures may be different. Undue reliance should not be placed on the information, statements or data contained herein because they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results to differ materially from those expressed or implied in such information, statements or data. Moreover, the information, statements and data contained herein have not been, and will not be, updated or supplemented with new or additional information, statements or data. 13