The rating reflects the agency’s expectations that Triglav Group will maintain strong operating performance in the medium term.
Following its regular annual revision, the AM Best credit rating agency re-affirmed the Financial Strength Rating of “A” and the Long-Term Issuer Credit Ratings of “a” of both Zavarovalnica Triglav and Pozavarovalnica Triglav Re. Both credit ratings have a stable medium-term outlook, which reflects the agency’s expectations that Triglav Group will maintain strong operating performance in the medium term, a very strong balance sheet and its dominant market position in Slovenia and the broader region.
AM Best rated all individual elements of the overall credit rating as high as the year before and substantiated them in a similar way. Triglav Group’s balance sheet strength was assessed as very strong and its operating performance as strong, the impact of both the business profile and the majority holding on the credit rating as neutral, and enterprise risk management as appropriate given the complexity and scope of its operations as well as the Group’s chosen risk profile. By affirming the high credit rating of the subsidiary Pozavarovalnica Triglav Re, AM Best highlighted its strategic importance as the reinsurer of all Triglav Group members and its strong integration into the Group.
The assessment of a very strong balance sheet is based on the Group’s risk-adjusted capitalization, which is at its strongest level. Furthermore, the Group has a prudent reserving approach and good financial flexibility with access to equity and bond markets. The Agency pointed out that in recent years the Group had taken appropriate measures to improve the asset-liability matching and to reduce the exposure to life insurance products with a guaranteed return.
The Group’s strong operating performance has been driven by excellent non-life insurance technical earnings in the domestic market and by healthy investment income in this segment. In addition, the benefits of the Group’s dominant position in highly competitive markets of the region and in Slovenia include a low expense base and other advantages of economies of scale.