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14 October 2021

AM Best affirms “A” ratings of Sava Re; 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 low reliance on reinsurance, sound financial flexibility and access to equity and debt markets.

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 negative impact of Covid-19-related losses was offset by lower claims frequency in some lines of business.

Furthermore, the Agency notes that Sava Re, backed by its strong position in its core market of Slovenia, where it is the second largest player with a market share of around 20%, 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.