November 2 (SeeNews) - Slovenian insurer Zavarovalnica Triglav [LJE:ZVTG] said on Thursday A.M. Best credit rating agency has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit ratings of 'a' (Excellent) of both the holding company and its subsidiary Pozavarovalnica Triglav.
The ratings of both companies have a stable medium-term outlook, Triglav said in a filing to the Ljubljana bourse.
Triglav had a domestic market share of 36% in 2016.
"The high rating affirmations of Zavarovalnica Triglav d.d. reflect the very strong balance sheet strength of the Triglav Group, constantly strong operating performance over the past five years and appropriate risk management," Triglav noted, citing the rating agency.
A.M. Best has estimated that the group is well capitalised with prudent management of provisions and strong financial flexibility. The group’s operations are affected by the low interest rate environment and the situation in the life insurance segment, which however is improving, it said.
A.M. Best also pointed out the benefits of the Group’s leading position in both the Slovene market and the region. In the opinion of the credit rating agency, the group demonstrated improvement in its operations on the markets outside Slovenia as it actively sought alternative lower cost distribution channels.
Furthermore, the economic conditions in the region partly improved, which also impacted the insurance markets, albeit the highly competitive and challenging operating conditions remained, A.M. said, as quoted by Triglav.
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