LJUBLJANA (Slovenia), November 20 (SeeNews) – Slovenian insurer Zavarovalnica Triglav [LJE:ZVTG] said on Wednesday that A.M. Best credit rating agency has affirmed the financial strength rating of 'A' (Excellent) and the long-term issuer credit ratings of 'a' of both the holding company and its subsidiary Pozavarovalnica Triglav.
The ratings of both companies have a stable medium-term outlook, which reflects the rating agency’s expectations that Triglav group will maintain a very strong balance sheet, robust operating performance and the dominant market position both in Slovenia and the region where it operates, Triglav said in a filing to the Ljubljana Stock Exchange.
“The group has a prudent reserving approach and good financial flexibility with access to equity and bond markets, which was also reflected in the subordinated bond issued this year,” Triglav quoted the rating agency as saying.
A.M. Best has estimated that the group’s enterprise risk management is developed and appropriate for its risk profile and operational scope and complexity.
“Its strong operating performance over the recent years has been driven by the excellent non-life insurance technical earnings in the domestic market and healthy investment income, even though it continues to be impacted by the low interest rate environment, the situation in the life insurance segment and very intense competitive conditions on the markets of the region.”
A.M. Best has noted the advantages of the group’s dominant position on the Slovene market and the region, Triglav said.
Moreover, outside of Slovenia Triglav continues to demonstrate improvement in earnings on the basis of additional scale and actively seeking alternative lower cost distribution channels, A.M. said, as quoted by Triglav.
Last week, Zavarovalnica Triglav said its January-September unaudited pre-tax profit rose 3% on the year to 72.0 million euro ($79.7 million).
($ = 0.90285 euro)
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