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Sep 05, 2023 12:06 EEST
September 5 (SeeNews) - Standard & Poor's Global Ratings (S&P) has affirmed the “A” insurer financial strength rating of Slovenian reinsurer Sava Re [LJE:POSR] and its core insurance entity Zavarovalnica Sava, with a stable outlook, Sava Re said on Tuesday.
According to S&P, the key strengths of Sava Re and its subsidiaries are their established and strong competitive position in Slovenia, the solid capitalisation at the “AAA” level, and their prudent underwriting combined with conservative reinsurance protection and a prudent investment strategy, Sava Re said in a filing with the Ljubljana Stock Exchange.
S&P considers that the impact of the recent torrential floods in Slovenia will be manageable for Sava Re.
Last month, Sava Re cut its 2023 profit guidance by 25% to about 40 million euro ($43 million) due to the devastating storms and floods that caused significant property damage in the country on August 4 and 5.
The estimated gross claims linked to the floods are approaching 100 million euro. Factoring in the claims that will be covered by Sava Re, the management board foresees the total impact on the business result to range between 30 million euro and 35 million euro.
This year's profit will be lower, but the impact of claims will be contained by the group's comprehensive reinsurance protection and S&P is confident that Sava Re will maintain its strong position in Slovenia and continue to gradually expand its footprint in its target markets in the Adriatic region and internationally.
The stable medium-term outlook reflects the expectation of S&P that the group's management will continue to pursue its strategy of solid operating performance and profitable growth, while further diversifying premiums and strengthening its income streams, and that it will maintain a strong balance sheet over the next two years despite the increased natural catastrophe claims and softer economy.
($ = 0.92996 euro)
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