In the rating agency's assessment, the key strengths of the Sava Insurance Group are its established and stable position in the Slovenian market, solid capitalization at the "AAA" level and its conservative investment policy. One of the Group's strengths is also prudent underwriting combined with conservative reinsurance protection, which supports operating performance.
The rating agency is of the opinion that the Sava Insurance Group solidified its market position in the Slovenian insurance market with the successful consolidation of Vita. S&P's believes the Group will continue to leverage its extensive distribution capabilities and client-centric approach to tap profitable growth from the favorable market conditions in Slovenia. Also, the Group's good underwriting profitability will safeguard its stability, even as claims frequency normalizes following a slowdown during COVID-19 lockdowns.
The stable outlook on the Group's core operating entities reflects the S&P's expectation that the Group's management will continue to implement its strategy of profitable growth while further diversifying premiums and income streams. Despite the integration of Vita and the potential turn in the economic cycle, the Agency expects the Group to sustain a strong balance sheet with at least very strong capitalization and strong and stable earnings over the next two years, enabling the Group to continue developing its domestic and foreign operations.