LJUBLJANA (Slovenia), October 9 (SeeNews) – Slovenian reinsurer Sava Re [LJE:POSR] said it is considering the issuing of subordinated Tier 2 bonds in order to optimise the capital structure of Sava Insurance Group.
Sava Re will decide whether to move forward with the bond issue after examining all market conditions, it said in a Ljubljana bourse filing earlier this week.
The planned callable subordinated Tier 2 bonds are expected to be rated BBB+ by Standard & Poor's, and to have a scheduled maturity date in 2039 with an optional redemption in 2029, Sava Re said.
Sava Insurance Group comprises 24 companies in six countries - Slovenia, Croatia, Serbia, Kosovo, North Macedonia and Montenegro. It employs over 2,400 people. The group reported a net profit of 43 million euro ($47 million) in 2018 on operating revenue of 540 million euro.
The solvency capital requirement (SCR) at group level rose to 217 million euro at the end of 2018 from 205 million euro a year earlier, while the solvency ratio slid to 218% from 220% at end-2017.
The group's written premiums rose to 336.8 million euro in the first half of 2019 from 308.6 million euro in the like period of 2018.
Sava Re shares traded unchanged at 16.9 euro by 1100 CET on Wednesday.
($=0.910415 euro)