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LJUBLJANA (Slovenia), October 18 (SeeNews) – US-based credit rating agency AM Best affirmed the financial strength rating of Slovenian reinsurer Sava Re [LJE:POSR] at “A” (Excellent) and its long-term issuer credit rating of “a”, with stable outlook, Sava Re said on Friday.
“The balance sheet has been assessed as very strong, its operating performance as strong,” the reinsurer said in a Ljubljana bourse filing.
The impact of the business profile on the ratings is neutral, while its enterprise risk management is appropriate to the Group’s organization, the company said, adding that the strong balance sheet is based on the strongest level of risk-adjusted capitalisation, liquid investment portfolio, prudent reserving and good internal capital generation.
“With the Company’s low reliance on reinsurance, sound financial flexibility and access to equity and debt markets, the agency expects the Company’s balance sheet to remain very strong in the medium term,” Sava Re said.
According to the rating agency, Sava Re has a track record of generating strong and stable operating results driven by sound non-life and life underwriting performance, supplemented by healthy investment income. “The agency expects operating performance to remain strong over the medium term, supported by disciplined underwriting and good risk selection.”
“Furthermore, the agency notes that the Group, backed by its strong position in its core market of Slovenia, has been actively expanding in the Western Balkan markets and expects to see further geographical diversification in the future.”
In August, Sava Re said that the consolidated net profit of its Sava Insurance Group rose by 59.3% year-on-year to 22.6 million euro ($25.1 million) in the first half of 2019, accounting for 52.5% of the planned full-year profit.
($ = 0.90046 euro)