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15 September 2023

AM Best affirms A ratings on Sava Re; outlook stable

Pursuant to the rules of the Ljubljana Stock Exchange, Ljubljana, and the Market in Financial Instruments Act, Sava Re d.d., Dunajska 56, Ljubljana (Sava Re or the Company) makes the following announcement:

Following its regular annual rating review, the rating agency AM Best (the Agency) has today issued its ratings on Sava Re:

“AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Pozavarovalnica Sava d.d. (Sava Re) (Slovenia), the operating holding company of the Sava Insurance Group. The outlook of these Credit Ratings (ratings) is stable.

“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).” Source: AM Best press release

Commenting on its assessment of the Company’s balance sheet, the Agency states: “Sava Re’s strongest level of risk-adjusted capitalisation, 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 assessment of very strong.” Source: AM Best press release

Assessing the Company’s operating performance, the Agency notes: “Sava Re has a track record of generating strong and stable operating results, indicated by a five-year (2018-2022) weighted average return-on-equity ratio of 14.3% (as calculated by AM Best). Consistent reporting of operating profits over the past five years has been driven by sound life and non-life underwriting performance, supplemented by healthy investment income.” Source: AM Best press release

Regarding the impact of the recent floods, the Agency states: “The full-year result will be impacted negatively by the third-quarter floods, particularly in Slovenia; however, the losses are expected to be within the group’s risk tolerances.” Source: AM Best press release

The full AM Best press release and other information on the ratings is available at https://news.ambest.com/PR/PressContent.aspx?altsrc=2&refnum=33802.