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3 December 2018

A.M. Best upgrades credit ratings of Save Re, d.d. to “A” (outlook stable)

Pursuant to the rules of the Ljubljana Stock Exchange, d.d., Ljubljana, and the Market in Financial Instruments Act, Sava Re, d.d., Dunajska 56, Ljubljana, makes the following announcement:

Following its regular annual rating review, the rating agency A.M. Best upgraded the financial strength rating of Sava Re, d.d. to “A” (Excellent) and its issuer credit rating to “a”, both with a stable outlook.

The balance sheet has been assessed as very strong, its operating performance as strong. The impact of the business profile on the ratings is neutral, while its enterprise risk management is appropriate to the Group’s organisation.

The agency states in its release that the upgrading reflects the Group’s strong balance sheet and risk-adjusted capitalisation. 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.

In addition, it finds that the Sava Re Group achieved solid technical results, with an excellent five-year (2013–2017) average loss ratio of 60%. The agency 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.

A.M. Best 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 Company believes that the improved rating will assist it in delivering on its strategy of selective and profitable growth in international reinsurance markets.