LJUBLJANA (Slovenia), December 3 (SeeNews) – Ratings agency A.M. Best has upgraded the financial strength rating of Slovenian reinsurer Sava Re [LJE:POSR] to 'A' (Excellent) and its issuer credit rating to “a”, both with a stable outlook, the holding company of the Sava Re Group said on Monday.
The upgrading reflects the group’s strong balance sheet and risk-adjusted capitalization, Sava Re said in a filing to the Ljubljana bourse, citing the A.M. report.
“Its strong financial position also reflects solid internal capital generation, low reliance on retrocession and good financial flexibility, with access to capital and debt markets.”
A.M. Best expects the group’s operating performance to remain strong over the medium term, supported by disciplined underwriting and good risk selection.
“Furthermore, the agency finds that the Group continues to cautiously develop its competitive position in the international reinsurance market. It also assesses as positive the Group’s strong position in the Slovenian market and its solid profile in the Western Balkans,” Sava Re quoted the rating agency as saying.
In addition, A.M. Best finds that the Sava Re Group has achieved solid technical results, with an excellent five-year (2013–2017) average loss ratio of 60%.
A.M. estimates that Sava Re’s risk management framework is appropriate given the complexity of its operations, as its risk management capability is aligned with its risk profile and risk governance is appropriately embedded across the entire group, the Slovenian company said.
Sava Re believes that the improved rating will assist it in delivering on its strategy of selective and profitable growth in international reinsurance markets.