The Company made a regular solvency calculation for the Group as of 31 March 2020, which showed that the Group is still operating with a very high solvency ratio of 235%.

Croatia Osiguranje published an announcement on the Zagreb Stock Exchange regarding the impact of Covid-19 pandemic on the company’s operations and solvency. The Company noted that they made a regular solvency calculation for the Group as at 31 March 2020, which showed that despite the negative effects of COVID-19, the Group is still operating with a very high solvency ratio of 235% (239% as at 31 December 2019).

This confirmed earlier assessments that the solvency ratio should remain at levels significantly higher than those prescribed in the regulations, which is also a result of the fact that the solvency and operations of the Group are largely determined by the solvency and operations of the Company as the most important component of the Group (the solvency ratio of the Company as at 31 December 2019 was 277% and as at 31 March 2020 was 274%).

Croatia Osiguranje added that based on the information available at the moment of drafting this notice, further development of the situation with COVID-19 and its impact on the Group’s operations did not have any significant negative effects on the Group’s solvency. In regard to liquidity, members of the Group still have satisfactory amounts of liquid resources that are sufficient for discharging all obligations that have become due; they also have at their disposal instruments available for obtaining additional liquidity if necessary.

In regard to other information related to the Group’s operations and risk profile, it is emphasized that there have been no significant changes compared to the period before the appearance of COVID-19, and attention is drawn to the fact that additional information regarding the operations can be found in the published financial statements for Q1 2020.