Triglav: S&P affirms high "A" credit ratings with a stable medium-term outlook

8 July 2024 — Andrei VICTOR
S&P Global Ratings affirmed the "A" financial strength and issuer credit ratings with a stable medium-term outlook of the Triglav Group and thereby of its parent company Zavarovalnica Triglav and the Group member Pozavarovalnica Triglav Re. All individual elements of this year's rating are at the same level as last year and the rating is based solely on an assessment of the Group's standalone credit profile.

The Triglav Group's business risk was again assessed as strong and its financial risk profile as very strong by the S&P credit rating agency. This year's assessment was carried out by S&P on the basis of an updated capital model, which includes revised criteria for analyzing the risk-adjusted capitalization of insurers. Under the new model, the Group's capitalization remains at a very high level and shows a high excess over the minimum capital requirement even in extreme scenarios (99.99% confidence level).

In addition to its robust capitalization, the agency pointed out the Group's other key strengths, highlighting its market leader position in the region and Slovenia, its well-diversified insurance portfolio enhanced by a large agency network and strong brand recognition. The Group manages its investment portfolio conservatively while effectively limiting its exposure to market risks.

The stable medium-term outlook reflects S&P's expectations that the Group will maintain its high and robust capitalization. The agency expects the Group to perform well this year, which it believes has already been confirmed by this year's first-quarter results. No negative impact is foreseen on the Group's performance in 2024 resulting from the discontinuation of supplemental health insurance in Slovenia. Looking ahead, the Group is expected to continue to achieve profitable growth based, inter alia, on further diversification of its product range and realized income, as outlined in its business strategy.