2013-10-17 18:47:01 -
A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating of A- (Excellent) and issuer credit ratings of “a-” of Zavarovalnica Triglav d.d. (Triglav), the operating holding company of the Triglav group, and Pozavarovalnica Triglav Re d.d. Ljubljana (Triglav Re), the wholly owned subsidiary of Triglav.
Both companies are domiciled in Slovenia. The outlook for both ratings remains stable.
The ratings of Triglav reflect its strong risk-adjusted capitalisation, solid operating performance and dominant profile within the Slovenian market. The ratings of Triglav Re reflect its strategic importance to Triglav, as the licensed reinsurer of the group. In addition to business derived from the global reinsurance market, Triglav Re provides reinsurance capacity to smaller group companies.
Triglav’s consolidated risk-adjusted
capitalisation remains strong, albeit subject to volatility, due to its high investment exposure to the domestic market. As at year-end 2012, fixed income and equity investments accounted for 138% of consolidated capital and surplus (including minority interests) compared to 162% in the previous year.
Triglav and Triglav Re’s ratings allow for the outcome of the eurozone investment stress tests that A.M. Best has performed, both at a stand-alone and consolidated level.
Triglav’s premium growth is expected to be dampened by the challenging economic conditions of its core market. Nonetheless, Triglav’s strategic focus on improving profitability, through quality risk selection, is expected to sustain solid prospective operating results. As at half-year 2013, despite a 5% decline in gross premium income, Triglav reported consolidated pre-tax profits of EUR 56 million underpinned by a combined ratio of 90.8% (half-year 2012: EUR 49 million, 88.0%).
The Triglav group of companies benefit from the dominant competitive position of Triglav in its domestic market, with a 36.5% share of the Slovenian market, and strong brand recognition across South-East Europe.
Positive rating actions could occur if Triglav continues to demonstrate stability in its rating fundamentals, particularly in relation to the generation of good underwriting results and supportive risk-adjusted capitalisation, on a consolidated and stand-alone basis.
Negative rating pressure could arise from a prolonged weakening of underwriting results, particularly in relation to Triglav’s expansion outside of Slovenia, or a decline in its risk-adjusted capitalisation.
Further deterioration in the economic conditions in Slovenia could also result in negative rating actions. Positive or negative actions taken on the ratings of Triglav are likely to affect the ratings of Triglav Re.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M.
Best Europe - Rating Services Limited Supplementary Disclosure : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
A.M. Best Europe – Rating Services Limited is a subsidiary of A.M.
Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
" title="http://cts.businesswire.com/ct/CT?id=bwnews&sty=20131017006142r1&sid=16929&distro=ftp\"/>" target="_blank" rel="nofollow">cts.businesswire.com/ct/CT?id=bwnews&sty=20131017006142r1&am ..
A.M. Best Company, Inc.Nicola Gaisford, +(44) 20
7397 0306Financial Analyst firstname.lastname@example.org
: mailto:email@example.com orDeniese
Imoukhuede, +(44) 20 7397 0277Associate Director firstname.lastname@example.org
: mailto:email@example.com orRachelle
Morrow, +(1) 908 439 2200, ext. 5378Senior Manager, Public
: mailto:firstname.lastname@example.org orJim
Peavy, +(1) 908 439 2200, ext. 5644Assistant Vice
President, Public Relations email@example.com