The S&P's assessment is based on the TRIGLAV Group's leading position both in Slovenia and the region, its well-diversified insurance portfolio enhanced by a large sales network and strong brand recognition. S&P assessed the business risk profile of TRIGLAV Group as strong and its financial risk profile as very strong. The Group's investment portfolio consists of high-quality investments broadly diversified mainly across the eurozone. The Group has a conservative reinsurance protection and a solid risk profile. All this enables the Group to generate stable and profitable performance, which S&P expects to continue in the future. Furthermore, S&P expects that the Group's development activities will continue as planned in its strategy, which includes further development of segmented product range, geographic diversification of income by increasing its premium share in the markets outside of Slovenia, and the strengthening of its asset management activity. The Group's growth and development is supported by its existing strong capital base, which is expected to remain at least in the "AA" range.
As far as SAVA Re is concerned, the credit rating agency believes that in the past few years, SAVA Insurance Group materially solidified the performance of its Slovenian business, as well as significantly expanded into insurance markets of the Adria region. Its reinsurance business has remained stable, and performed better than the industry. The credit rating agency also sees positively that the Group solidified its domestic competitive position with the acquisition of SAVA Infond d.o.o., an asset management company.
Positive underwriting results allow the SAVA Re Group to post continued growth of net profit, translating into an adequate return on equity. According to the credit rating agency, this stable profitable performance, in combination with its very strong capital position, remains the key strength of the SAVA Insurance Group.