Zavarovalnica Triglav d d : Unaudited Interim Report of the Triglav Group and Zavarovalnica Triglav d.d. for the period from 1/1/2023 to 30/6/2023

Unaudited Interim Report of the Triglav Group and Zavarovalnica Triglav d.d. for the period from 1 January 2023 to 30 June 2023

MANAGEMENT BOARD:

President: Andrej Slapar

Members: Uroš Ivanc

Tadej Čoroli

Marica Makoter

Blaž Jakič

Ljubljana, August 2023

Dear shareholders, business partner and colleagues,

This year we have faced significant challenges stemming from external factors, the most notable being the unexpected introduction of price regulation for supplemental health insurance in Slovenia and other regulatory restrictions in this segment. The year 2023 has also been marked by extreme weather events in Slovenia and the region that occurred after the reporting period. The challenging situation has had a negative impact on our performance results, but our robust business model with an effective risk management system has enabled us to maintain financial stability and capitalisation at appropriate levels.

At the half-year point, we can be satisfied with the income side of our business, as we have successfully strengthened our total business volume and contractual service margin.

Their double-digit growth is the result of our strategic focus on our clients. Our range of products and services is well diversified and tailored to their needs and the specificities of the Triglav Group's individual markets. In investment activities, the favourable situation in the financial markets this year enabled us to achieve a strong performance and a positive other comprehensive income.

Our half-year profit was adversely affected by a higher claims intensity and the continued inflationary pressures on claims and expense growth, as the positive effects of price adjustments on operating income are seen with a delay. The most negative impact stemmed from the price cap of supplemental health insurance in Slovenia. In line with international financial reporting standards, its impact on the Group's annual performance had to be recognised already in the half-year financial statements, consequently recording a high negative result for the health insurance segment. I would like to add that, even after the termination of supplemental health insurance at the end of 2023, the Group will continue to maintain, develop and sell commercial health insurance products in the markets of the Adria region, which we believe have significant long-term potential.

The achievement of the planned result in 2023 will be significantly affected by the unexpected loss in the health insurance segment and by CAT claims, mainly as a result of hail storms in July and floods in August, which will have an impact on the Group's results in the third quarter. Their current estimate is record high and considerably exceeds the long-term average of the impact of CAT events on the Group's profit. As a result of these two factors, we project that the combined profit of the Group's non-life and health insurance segments in Slovenia will be negative this year. Accordingly, we further forecast that, in the event of normal claim development, the Group's profit before tax will be around 80% lower than planned by the end of the year.

Over its 120-year history, the Triglav Group has effectively overcome a variety of challenges and navigated through claim intensive years. Claims are part of our business and give meaning to our existence, and they make us even more aware of our mission of building a safer future.

In this context, we have implemented numerous strategic activities focusing on the client and in line with our sustainability ambitions. The credit for this goes to Triglav's employees, to whom I would like to extend sincere gratitude.

Andrej Slapar

President of the Management Board of Zavarovalnica Triglav

2

Business Report

1.	Financial highlights in the first half of 2023	5
2.	Operations of the Triglav Group and Zavarovalnica Triglav	10
3.	Company governance	24
4.	The share and shareholders of Zavarovalnica Triglav	27
5.	Macroeconomic environment and insurance markets	33
6.	Other information	36

1. Financial highlights in the first half of 2023

1.1 Triglav Group's business operations Key financial highlights of the Triglav Group 1

			In EUR million
	H1 2023	H1 2022	Index 2023/ 2022
Total business volume*	955.4	861.2	111
Gross written premium*	893.5	797.2	112

Total revenue Insurance service result Investment result

Financial result from insurance contracts Gross operating expenses

• attributable
• non-attributable
• expenses from non-insurance operations Profit before tax
  Net profit
  Other comprehensive income

737.9658.9

19.9	24.0
	-72.6
53.8
	72.9
-46.6

214.4188.8

163.7142.0

28.9	27.0
	19.8
21.7
	-3.7
10.5
	-3.7
9.9
	-42.8
8.7

112

83

114

115

107

110

	30 June 2023	31 December 2022	Index 2023/ 2022
Balance sheet total	4,039.7	3,901.1	104
Equity	856.2	894.3	96
Controlling interests	852.6	890.9	96
Net insurance contract liabilities	2,326.7	2,163.4	108
Net reinsurance contract assets	321.5	269.6	119
Contractual service margin (CSM)	208.7	186.4	112
Risk adjustment (RA)	73.6	70.8	104
Number of employees	5,309	5,306	100

• Total business volume (gross written insurance, coinsurance and reinsurance premiums and other operating income) and gross written premium disclose the categories as defined under IFRS 4.

Key performance indicators of the Triglav Group

ROE annualised Claims ratio Expense ratio

Combined ratio in non-life and health insurance Combined ratio in non-life insurance

CSM of new contracts/Total CSM

	H1 2023		H1 2022
	2.3%	-0.8%
	78.8%	78.2%
	23.4%	22.9%
	102.2%	101.1%
	97.0%	101.0%
	9.5%		11.5%

	Claims + change in future cash flows + change in experience correction + change in onerous contracts + reinsurance result
Claims ratio =	Insurance revenue
	Attributable and non-attributable costs + other net insurance service expenses (less other insurance revenue)o
Expense ratio=	Insurance revenue

1 The information is presented based on the financial statements prepared in accordance with the new IFRS 9 and IFRS 17 standards effective from 1 January 2023. The data for the comparative periods were adjusted to reflect the implementation of the specified new standards from 1 January 2022 onwards. The data do not contain elimination of intercompany transactions.

5