"The ratings reflect Sava Re’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM)", the credit rating agency said.
According to AM Best, Sava Re’s strongest level of risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), liquid investment portfolio, prudent reserving and good internal capital generation collectively contribute to an overall balance sheet strength assessment of very strong. Additionally, the company exhibits low reliance on reinsurance and sound financial flexibility, with access to both equity and debt markets, it said.
In 1H2024, Sava Re reported a strong net profit of EUR 44.5 million and a combined ratio of 89.7%, and AM Best expects the full-year result to be in line with historical performance.
It is noted that Sava Insurance Group benefits from a strong position in its core domestic market of Slovenia, where it is the second-largest player and holds a market share of approximately 29%, excluding supplementary health insurance business, in terms of gross written premium, according to AM Best. The group’s insurance business is dominated by premiums written in Slovenia; however, the company continues to expand in the West Balkan markets. AM Best expects to see further geographic diversification from Sava Re in the medium term in both the direct and reinsurance segments, as the group continues to develop its position prudently in the international reinsurance market.
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