Credit Rating of Zavarovalnica Triglav Upgraded to “A” by A.M. Best Credit Rating Agency

In accordance with the Ljubljana Stock Exchange Rules and the applicable legislation, ZAVAROVALNICA TRIGLAV d.d., hereby publishes the following notice:

Following its regular annual revision, the A.M. Best credit rating agency upgraded the financial strength rating of “A–” to “A” (Excellent) and the issuer credit rating of “a–” to “a” (Excellent) of both Zavarovalnica Triglav d.d. and Pozavarovalnica Triglav Re d.d. The ratings of both companies have a stable medium-term outlook.

The credit ratings reflect the Company’s consistently excellent performance over the past five years, its leading position on the Slovene market and strong Triglav brand recognition in the region. According to A.M. Best, the Company’s performance on the domestic market is affected by the improved but still challenging situation and fierce competition in the market. Nevertheless, the Company performed well in the pension and health insurance markets in the first half of 2016. The Company has established a comprehensive risk management and underwriting system, which is expected to improve even further. A.M. Best raised the credit ratings of the parent company also as a result of strong and risk-adjusted capitalisation of the Company. It is expected that the Company will maintain its prudent capital management and the adopted dividend policy, which will support the target capital adequacy of the Group.

Furthermore, the credit rating agency upgraded the financial strength rating and the long-term credit rating of the Company's subsidiary Pozavarovalnica Triglav Re d.d. to “A” and “a” respectively, thereby confirming its key role as the reinsurer of all Triglav Group members. Both ratings have a stable medium-term outlook.

High credit ratings ensure an appropriate competitive position of the Triglav Group in insurance, reinsurance and financial markets, as they confirm its financial strength and solid performance. The latter, which is one of the key strategic objectives of the Triglav Group, was achieved in 2016 by further improving the Group's standalone credit ratings to “A”, as confirmed by both credit rating agencies that review the Triglav Group.

This information will be published on the website of Zavarovalnica Triglav at www.triglav.eu as of 2 November 2016 and will remain available on the Company's public website for a period of at least five years.