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18 October 2019

AM Best affirms “A” level credit ratings of Sava Re with stable outlook

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 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, 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 its assessment that the balance sheet is very strong is based on the strongest level of risk-adjusted capitalisation, liquid investment portfolio, prudent reserving and good internal capital generation. With the Company’s low reliance on reinsurance, sound financial flexibility and 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, 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 the Group, backed by its strong position in its core market of Slovenia, has been actively expanding in the West Balkan markets and expects to see further geographical diversification in the future.

AM Best assesses that Sava Re’s risk management framework is appropriate for the Company’s risk profile and operational scope.

This announcement will also be available on the Company’s website, at www.sava-re.si, at least five years from the date of this announcement.