October 15 (SeeNews) - US-based credit rating agency AM Best affirmed the financial strength rating of Slovenian reinsurer Sava Re [LJE:POSR] of 'A' (Excellent) and the long-term issuer credit rating of 'a', both with stable outlook, Sava Re said.
"The balance sheet has been assessed as very strong, the operating performance as strong, the impact of the business profile on the ratings as neutral and the enterprise risk management as appropriate to the Group’s organisation," the reinsurer said in a statement on Thursday.
The balance sheet of Sava Re is based on the strongest level of risk-adjusted capitalisation, the liquid investment portfolio, prudent reserving and good internal capital generation with low reliance on reinsurance, sound financial flexibility and access to equity and debt markets, AM Best said.
"Sava Re has a track record of generating strong and stable operating results driven by sound non-life and life underwriting performance and supplemented by healthy investment income. The negative impact of Covid-19-related losses was offset by lower claims frequency in some lines of business," the agency noted.
Furthermore, the agency notes that Sava Re, backed by its strong position in its core market of Slovenia, where it is the second-largest player with a market share of around 20%, has been actively developing its competitive position in the West Balkan markets.
Sava Re is the parent company of the Sava Insurance Group, which has operations in Croatia, Kosovo, North Macedonia, Montenegro and Serbia, as well as in Slovenia.
($=0.853447 euro)