In its report, S&P again assessed the business risk profile of Triglav Group as strong and its financial risk profile as very strong. The leading position in the Slovenian market enables the Group to implement economies of scale, which it complements with its strong brand, diversified product range and regionally diversified sales network. By maintaining its client-centric approach, the Group ensures profitable operations in both activities, insurance and asset management. Underwriting discipline was key for the Group's sound performance in the challenging conditions due to the pandemic in 2020 and the first half of 2021.
According to S&P, the Group's stable risk profile benefits from its conservative investment policy and effective reinsurance protection. The latter was retested in 2020 by a very intense natural catastrophe season (two earthquakes in Croatia and hail storms in three markets) and again proved to be effective. Its investment portfolio is of high quality and well-diversified, with most assets invested across the eurozone. The risks of life insurance business with guarantees are limited and mitigated by adequate management of provisions.
The medium-term outlook reflects S&P's expectations that the Group will continue to effectively implement its business strategy at least over the next two years, focusing on growth and further diversifying its operations. The agency expects that despite the pandemic and the turn in the economic cycle the Group will sustain strong, stable earnings and strong capitalisation at least in the "AA" range over the next two to three years.