Both companies are domiciled in Slovenia. The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Triglav's balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
Triglav's balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), on a standard and stressed basis. The assessment also considers the group's prudent reserving and good financial flexibility, with access to equity and debt markets, as evidenced by the issuance in 2019 of a EUR 50 million subordinated bond. Financial leverage and interest coverage are well within AM Best tolerances.
Triglav's operating performance continues to be strong, as evidenced by a solid five-year (2015-2019) weighted average return on equity (ROE) and combined ratio of 10.8% and 89.9%, respectively (as calculated by AM Best).
AM Best expects growth in premium volume to be moderate over the medium term, reflecting the combination of improving operating conditions in Slovenia, and the highly competitive nature of the international reinsurance market.