Zavarovalnica Triglav d d : Clarification regarding the Triglav Group's supplemental health insurance

Health insurance is one of the pillars of the Group's insurance business that helps shape the Group's diversified product range. The health insurance premium is material at Group level (EUR 216 million in 2022, or 15% of the Group's total written premium), whereas its contribution to the Group's profit in recent years has been limited and was negative in 2022. Within the health insurance segment, the Group has been strategically developing complementary health insurance products in the markets of the Adria region for many years and international reinsurance of health insurance services, while supplemental health insurance products have been provided as part of the legally required segment of the public healthcare system. The effect of the current introduction of price regulation of the latter in Slovenia cannot yet be adequately assessed due to uncertainty. As always, the Group will adequately protect the interests of all its stakeholders.

With regard to the legislative regulation of supplemental health insurance in Slovenia, we are providing some clarifications. More detailed information on the Group's health insurance segment is available in the already published regular financial reports of the Group and other public disclosures.

Health insurance is one of the pillars of the Group's insurance business that helps shape the Group's diversified product range. For many years, the Group's main focus has been the development and strengthening of complementary health insurance products in the markets of the Adria region, which will continue in the future. In the international environment, it provides reinsurance for health insurance companies, while it provides supplemental health insurance as part of the legally required segment of the public healthcare system.

In 2022, health insurance accounted for 15% of the Group's total written premium, whereas its contribution to the Group's total profit in recent years has been limited and was negative in 2022. Last year, the Slovenian health insurance company generated a negative profit before tax, which amounted to EUR -2.7 million from supplemental health insurance and EUR -1.5 million at company level.

On 14 April 2022, the Slovenian Government adopted the Decree on setting the maximum price of supplemental health insurance premium, and this price limitation is expected to apply until the supplementary health insurance is reformed based on amendments to the Healthcare and Health Insurance Act. The Triglav Group supports the reform of the public healthcare system in Slovenia but believes that due to the system's complexity it must be carried with the aim of ensuring the long-term financial sustainability of the healthcare system's funding sources.

Due to the resulting uncertainty, the Group has not yet able to adequately assess the effects of the current situation. These depend on the movement of costs and claims from supplemental health insurance (also taking into account the fact that the provisions formed during the COVID-19 pandemic pursuant to the PKP5 Act will soon run out), the duration of the current regulation and further legal changes.

The Triglav Group is aware of its responsibility towards its stakeholders - clients, shareholders, employees and the wider social and natural environment. Therefore, it is carefully monitoring the situation in the business environment and will continue to provide transparent information.