S&P Assigns ‘BBB+’ Rating to Slovenia’s Sava Re

September 1, 2005

Standard & Poor’s Ratings Services announced that it has assigned its “BBB+” long-term counterparty credit and insurer financial strength ratings to Slovenia-based reinsurer Pozavarovalnica Sava, d.d. (Sava Re) with a stable outlook.

“Sava Re is Slovenia’s leading reinsurer. At Dec. 31, 2004, Sava Re had a 55 percent share of the Slovenian reinsurance market, with total assets of Slovenian tolar (ST) 57.5 billion ($297 million) and gross premium income of ST 21.3 billion [$4.12 billion],” said the announcement.

“The ratings on Sava Re are driven by the company’s strong capitalization, good and sustainable competitive position, and conservative investment profile,” stated S&P credit analyst Tatiana Grineva. S&P said the ratings were however offset by the geographical limitation of the competitive position and a high level of exposure to insurance affiliates.

“The stable outlook reflects Standard & Poor’s expectations that Sava Re will maintain its leading position in the Slovenian reinsurance market and continue the controlled growth of its portfolio in the EU reinsurance markets,” Grineva added. “We also expect the company to maintain its strong capitalization, good operating performance, and its controlled and conservative investment strategy, particularly toward acquisitions of insurance subsidiaries and investments in affiliates.”

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