As a reminder, the shareholders approved at the GSM the distributable profit in the amount of EUR 24.8m to be paid as dividends in two installments.

NLB went ex-date yesterday, which refers to the second installment of dividends in the total amount of EUR 12.8m (or EUR 0.64 per share). We note that the dividend yield was 0.9% (at the share price a day before the ex-date). The share price decreased yesterday by 1.08%, while the turnover amounted to EUR 654.3m.

As a reminder, the shareholders approved at the GSM the distributable profit in the amount of EUR 24.8m ti be paid as dividends in two installments. Note that the first installment of EUR 0.6 per share was already paid out to the shareholders back in June.

We also note that the company’s management has been quite vocal about paying out a total of EUR 92m in dividends in 2021, which should indicate that the company could pay an additional dividend of EUR 3.36 per share, short of a regulatory ban. We do not expect to see any regulatory issues with the dividend payment and expect an additional payment to occur in Q4 of 2021. At the current share price, the potential additional dividend would translate to a DY of 4.7%.

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.

AM Best affirmed the financial strength rating of Sava Re of “A” (Excellent) and its long-term issuer credit rating of “a”, both with a stable outlook.

Following its regular annual rating review, the rating agency AM Best affirmed the financial strength rating of Sava Re of “A” (Excellent) and its long-term issuer credit rating of “a”, both with a stable outlook.

The balance sheet has been assessed as very strong, the operating performance as strong, the impact of the business profile on the ratings as neutral and the enterprise risk management as appropriate to the Group’s organization.

The Agency states in its press release that its overall assessment that the balance sheet is very strong is based on the strongest level of risk-adjusted capitalization, the liquid investment portfolio, prudent reserving and good internal capital generation with low reliance on reinsurance, sound financial flexibility and access to equity and debt markets.

In addition, the Agency finds that Sava Re has a track record of generating strong and stable operating results driven by sound non-life and life underwriting performance and supplemented by healthy investment income. The negative impact of Covid-19-related losses was offset by lower claims frequency in some lines of business.