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S&P confirms Slovenia's Triglav at “A”, medium-term outlook stable

Author Maja Garaca
S&P confirms Slovenia's Triglav at “A”, medium-term outlook stable Author: Triglav. License: All rights reserved.

LJUBLJANA (Slovenia), September 10 (SeeNews) - Standard and Poor's (S&P) has confirmed the “A” long-term credit rating and financial strength rating of the Triglav Group and thereby of its parent company Zavarovalnica Triglav and its subsidiary Pozavarovalnica Triglav Re, with a stable medium-term outlook, Slovenia's biggest insurer said on Monday.

According to S&P, the reaffirmed high ratings reflect the Group’s leading position both in the Slovene growing market and the region, its stable and profitable operations in recent years and a sound risk-based capital adequacy, Triglav said in a Ljubljana bourse filing.

S&P assessed the business risk profile of the Triglav Group as strong on the back of its market leadership in Slovenia and the region, its profitable and well-diversified insurance portfolio enhanced by a large sales network and strong brand recognition.

As important aspects, S&P pointed out the Group’s strategic client-centric approach, its leading position in offering innovative risk covers in the region and the use of alternative sales channels, such as the option to purchase insurance online.

According to S&P, the Group’s capital adequacy meets the “AAA” rating requirements, also reaffirmed by the Solvency II ratio of 222% as at the 2017 year-end, Triglav said. 

"Sound financial stability is ensured by strong business profitability, a very conservative and stable reinsurance protection and prudent management of provisions. Triglav has a good diversified investment portfolio, with its assets mostly invested in the euro area. S&P regards the Group’s exceptional liquidity as its important advantage. It is based on steady premium income and a liquid asset portfolio, allowing Triglav to manage unexpectedly large claims", Triglav quoted S&P as saying.

The ratings agency noted that the “A” credit rating exclusively reflects the Group's standalone credit profile and does not include any uplift from the insurer's status as a government-related entity.

"The stable medium-term outlook reflects the S&P’s expectations that the Triglav Group will continue to effectively implement its business strategy, focusing on sustaining profitability, growth and very strong capital adequacy over the next two years", Triglav quoted the ratings agency as saying.