Sava Re will merge its two Slovenian insurers, Zavarovalnica Maribor and Tilia, and its Croatian insurance businesses, Velebit osiguranje and Velebit životno osiguranje, a plan that is to be completed by the end of 2016.

The new company will be headquartered in Maribor, while basic business and development activities will be operated from Maribor, Novo mesto and Zagreb.

The management presented the motion Wednesday to the supervisory board.

The company said the consolidation would boost competitiveness on both markets and improve cost-efficiency, with savings projected at EUR 5-6m per year in three years.