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16 October 2020

AM Best affirms A-level credit ratings of Save Re d.d.; 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 (“Sava Re” or the “Company”), makes the following announcement:

Following its regular annual rating review, the rating agency AM Best (Agency) affirmed the financial strength rating of Sava Re of “A” (Excellent) and its long-term issuer credit rating of “a”, both with a stable outlook.

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

The Agency states in its press release that its overall assessment that the balance sheet is very strong is based on the strongest level of risk-adjusted capitalisation, the liquid investment portfolio, prudent reserving and good internal capital generation. With the Company’s low reliance on reinsurance, sound financial flexibility and its access to equity and debt markets, the Agency expects the Company’s balance sheet to remain very strong in the medium term.

In addition, the Agency finds that Sava Re has a track record of generating strong and stable operating results driven by sound non-life and life underwriting performance and supplemented by healthy investment income. The Agency expects operating performance to remain strong over the medium term, supported by disciplined underwriting and good risk selection.

Furthermore, the Agency notes that Sava Re, backed by its strong position in its core market of Slovenia where, following the acquisition of the Slovenian life insurance company NLB Vita, it has a market share of around 19%, has been actively developing its competitive position in the West Balkan markets. AM Best expects to see further geographical diversification over the medium term in both the direct and the reinsurance segments as the Group continues to prudently advance its position in the international reinsurance market.