S&P affirms 'A' ratings on Sava Re and Zavarovalnica Sava, outlook stable

7 September 2023 — Daniela GHETU
Following its regular annual rating review, the rating agency S&P Global Ratings (the Agency) affirmed the “A” (strong) insurer financial strength rating on Sava Re and Zavarovalnica Sava. The outlook is stable.

According to the Agency, the key strengths of the Sava Insurance Group are its established and strong competitive position in the Slovenian market, its solid capitalisation at the “AAA” level, and its prudent underwriting combined with conservative reinsurance protection and a prudent investment strategy, which underpins solid business performance.

The Agency considers that the impact of the recent torrential floods in Slovenia will be manageable for the Sava Insurance Group, with claims remaining inside the Group’s risk tolerances. It considers that these claims will not have a material impact on the Group’s capital position. This year’s profit will be lower, but the impact of claims will be contained by the Group’s comprehensive reinsurance protection. The Agency is confident that the Group will maintain its strong position in Slovenia and continue to gradually expand its footprint in its target markets in the Adriatic region and in the international reinsurance markets.

The stable medium-term outlook reflects the Agency’s expectation that the Group’s management will continue to pursue its strategy of solid operating performance and profitable growth, while further diversifying premiums and strengthening its income streams, and that it will maintain a strong balance sheet over the next two years despite the increased natural catastrophe claims and moderating macroeconomic conditions.