TRIGLAV GROUP WE ARE BUILDING A SAFER FUTURE TRIGLAV GROUP Key Features Core business – 3 pillars Insurance Third-party asset management Banking Triglav Group Parent company Zavarovalnica Triglav, d.d. 31 subsidiaries and 12 associated companies Market presence in 8 countries S&P rating A/stable Key figures H1 2011 GPW: 549.9 mio EUR (-1%) Net profit: 34.1 mio EUR Combined ratio: 89.0% (-9 p.p.) Equity: 514 mio EUR (+3 %) TRIGLAV GROUP The core business is insurance Insurance Profit by business in 2010 Non-life 40 Life 27,8 Supplementary pensions 30 Health 20 Asset management 5,8 Mutual funds In EUR million 10 0,4 Investment companies -7,4 Investment holdings 0 Real Estate -10 Banking NON-LIFE LIFE HEALTH OTHER Significant interest in Abanka Vipa, d.d. 3 TRIGLAV GROUP Market presence with non-insurance businesses according to local opportunities/needs Banking Other Insurance Asset management (presence only trough (Supporting bussines) significant interest) Slovenia Zavarovalnica Triglav, d.d. Triglav DZU, d.o.o. Abanka Vipa, d.d. Triglav INT, d.d. Pozavarovalnica Triglav Re, d.d. Triglav Naložbe, d.d. TRI-PRO, d.o.o. Triglav, Zdravstvena zavarovalnica, d.d. Triglav nepremi čnine, d.d. AS Triglav, d.o.o. Triglavko, d.o.o. Skupna pokojninska družba, d.d. Croatia Triglav Osiguranje, d.d. Bosnia in Triglav BH Osiguranje, d.d. Polara Invest, d.d. Autocentar BH, d.o.o. Herzegovina Triglav Krajina Kopaonik, a.d. PROF-IN, d.o.o. TRI-PRO BH, d.o.o. Unis automobili i dijelovi, d.o.o. Serbia Triglav Kopaonik, a.d.o. Triglav penzijski fondovi, a.d. Montenegro Lov ćen Osiguranje, a.d. Lov ćen Avto, d.o.o. Lov ćen životna osiguranja, a.d. Macedonia Vardar osiguruvanje, a.d. Czech Republic Triglav Pojišt'ovna, a.s. 4 TRIGLAV GROUP MARKETS Slovenia: Zavarovalnica Triglav and Triglav, zdravstvena zavarovalnica Gross premium written H1: -2% Market development in 2010: 435.7 m EUR Insurance penetration: 5.9% Market share (2010): 40.8% -1.2 p.p. GPW: 1,942 m EUR (+1%) Market position: 1 Insurance density: 1,020 EUR per capita Gross operating costs H1: -3% 84.6 m EUR Major events: Gross claims paid H1: +7% 240.1 m EUR New strategy of the group strictly implemented Combined ratio H1: 86.1% Immense improvement in profitability Impairments of financial instruments 5 TRIGLAV GROUP MARKETS Croatia: Triglav osiguranje Gross premium written H1: +2% Market development in 2010: 31.0 m EUR Insurance penetration: 2.8% Market share: 4.4% +0.1 p.p. GPW: 1,268 mio EUR (-2%) Market position: 7 Insurance density: 286 EUR per capita Gross operating costs H1: -1% 8.1 m EUR Gross claims paid H1: -6% Major events: 13.1 m EUR Favourable trend in key Combined ratio H1: 107.2% performance ratios Asset management software fully implemented 6 TRIGLAV GROUP MARKETS Serbia: Triglav Kopaonik Gross premium written H1: +5% Market development in 2010: 10.5 m EUR Insurance penetration: 1.8 % Market share: 3.5% +0,2 p.p. GPW: 550 m EUR (-2 %) Market position: 7 Insurance density: 75 EUR per capita Gross operating costs H1: +21% 6.2 m EUR Major events: Gross claims paid H1: +67% 4.6 m EUR Continuous, but relatively costly growth of market share Combined ratio H1: 109.9% Strengthening of technical reserves 7 TRIGLAV GROUP MARKETS Bosnia and Herzegovina: Triglav BH osig., Triglav Krajina Kopaonik osig. Gross premium written H1: +3% Market development in 2010: 11.3 m EUR Insurance penetration: 1.5% Market share: 8.7% -0,0 p.p. GPW: 244 m EUR (+4%) Market position: 3 Insurance density: 65 EUR per capita Gross operating costs H1: 11% 5.0 m EUR Gross claims paid H1: -20% Major events: 4.0 m EUR Stable market share Combined ratio H1: 100.7% Growth of acquisition costs due to challenging distribution environment 8 TRIGLAV GROUP MARKETS Montenegro: Lov ćen osiguranje Gross premium written H1: -2% Market development in 2010: 16.5 m EUR Insurance penetration: 1.6 % Market share: 53.1% -1.5 p.p. GPW: 63 m EUR (-4%) Market position: 1 Insurance density: 99 EUR per capita Gross operating costs H1: -26% 4.8 m EUR Major events: Gross claims paid H1: -6% 8.8 m EUR Turnaround strategy and management yielding results Combined ratio H1: 99.1% 9 TRIGLAV GROUP MARKETS Macedonia: Vardar osiguruvanje Gross premium written H1: +5% Market development in 2010: 11.2 m EUR Insurance penetration: 1.2 % Market share: 20.6% -0.7 p.p. GPW: 105.5 m EUR (+5%) Market position: 1 Insurance density: 51 EUR per Gross operating costs H1: +18% capita 2.6 m EUR Gross claims paid H1: +1% Major events: 6.4 m EUR Reasonable premium growth Combined ratio H1: 96.2% Restructuring of insurance portfolio Higher costs due to non-personnel overhead 10 TRIGLAV GROUP MARKETS Czech republic: Triglav Pojišt’ovna Gross premium written H1: +5% Market development in 2010: 14.4 m EUR Insurance penetration: 4.0% Market share NL: 0.8% -0.04 p.p. GPW NL: 3,188 m EUR (0%) Market position: 11 Insurance density: 568 EUR per capita Gross operating costs H1: +8% 4.2 m EUR Gross claims incurred H1: +6% Major events: 8.7 m EUR Measures for the improvement in Combined ratio H1: 99.9% profitability being introduced and already yielding results 11 PERFORMANCE OF TRIGLAV GROUP IN H1 2011 In EUR million 1-6 2011 1-6 2010 INDEX Gross premium written 549,9 557,1 99 Net premium earned 456,9 467,4 98 Gross claims paid 296,7 278,0 107 Net claims incurred 282,5 287,3 98 Gross operational costs 114,4 115,7 99 Profit before Tax 49,0 24,3 201 Profit after Tax 34,1 17,9 190 30. 6. 2011 31. 12. 2010 INDEX Total assets 3.122 3.024 103 Insurance contract provisions 2.342 2.271 103 Equity 514 499 103 Number of emploeyees 5.155 5.247 98 1-6 2011 1-6 2010 Loss ratio 61,3% 69,3% Expense ratio 27,8% 28,6% Combined ratio 89,0% 97,8% 12 INVESTMENT PORTFOLIO Consistent investment strategy Structure of portfolio investments Main drivers in H1 2011: Restructuring of portfolios towards liquid short term instruments Drop of share prices on LJSE Raising credit spreads Raising interest rates Impairments of non-listed assets Very limited exposure to PIIGS (marked to market, Greeks impaired through P&L to expected recovery) 13 FIXED INCOME INVESTMENT PORTFOLIOS Portfolios still dominated by sovereign bonds, but restructured towards Structure of bond portfolio by issuer Structure of bond portfolio by rating 14 NET PROFIT Profit growth and combined ratio improvement as a result of lower net claims and costs Net profit H1 2011 Combined ratio H1 2011 60 140% -8,8 p.p. 50 +90,0% 120% 97,8% inmillion EUR 100% 89,0% 40 34,1 80% 30 60% 20 17,9 40% 10 20% 0 0% 1-6 2010 1-6 2011 1-6 2010 1-6 2011 Net profit 2007-2010 Combined ratio 2007-2010 60 54,5 110% 103,6% 104,0% 50 105% 101,4% 40 100% 30 26,6 95% 20 In EURIn million 90% 92,0% 10 1,0 85% 0 2007 2008 2009 2010 80% -10 2007 2008 2009 2010 -6,3 15 STRONG CAPITAL BASE Solvency ratios and technical provisions follow the strategy and demanding business conditions Solvency ratios Gross insurance technical provisions 200% 2.400 2.342 186% 2.271 2.300 166% 174% 175% 164% 2.162 151% 2.200 146% 150% 2.100 Solvency In EUR million EUR In 2.000 1.918 125% 1.900 1.815 100% 1.800 39082 31.12.2007 31.12.2008 31.12.2009 31.12.2010 30.06.2011 31.12.2007 31.12.2008 31.12.2009 31.12.2010 30.06.2011 16 RECENT EVENTS Current activities inline with strategic objectives and guidelines The sell of the interest in Abanka Vipa – the process expected to start in Q3 2011 The entry in Albania being further negotiated Triglav INT Zavarovalnica Triglav is going to transfer the ownership of all insurance subsidiaries abroad to Triglav INT NDA and Equity Appraisal Letters signed with IFC in June 2011 Term sheets to be negotiated in Q3 and Q4 2011 – IFC intends to pay in additional equity to Triglav INT and to obtain up to 20 % ownership rights of Triglav INT The strategy of Triglav Group is to retain at least majority (>50 %) ownership of Triglav INT 17 TRIGLAV GROUP PLANS FOR 2011 Stable premium growth with high growth of profits In EUR million Index 2009 2010 Plan 2011 2010/2009 2011/ 2010 Gross premium written 1.022,3 1.013,6 1.024,6 99 101 Net premium earned 946,3 946,2 943,8 100 100 Gross claims paid 597,2 588,3 643,7 99 109 Net claims incurred 610,9 557,7 625,7 91 112 Gross operating costs 239,1 239,9 236,2 100 98 Profit /loss before Tax 2,1 43,3 65,4 2.078 151 Profit/loss net -6,3 26,6 54,2 203 Plan Index 31.12.2009 31.12.2010 31.12.2011 2010/2009 2011/ 2010 Total balance sheet 2.866,0 3.024,4 3.265,6 106 108 Gross insurance contract provisions 2.161,8 2.270,9 2.414,8 105 106 Equity 477,8 499,0 606,7 104 122 Number of employees as at 31.