S&P lifts Sava Re

Standard & Poor’s said it raised the long-term insurer financial strength and counterparty credit ratings on Pozavarovalnica Sava dd, the holding company and core operating entity of the Sava Re group, to A- from BBB+.

The outlook is stable.

The acquisition of mid-market Slovenian insurer Zavarovalnica Maribor, mostly financed with a share rights issue in 2013, has improved Sava Re’s capital adequacy and underwriting performance, S&P said.

Prudent margins on Sava Re’s property- and casualty-loss reserves, as well as a conservative dividend payout policy and share buyback program, also support the upgrade, the agency said.

This strengthening in capital adequacy is sustainable, as management continues to focus on profitable underwriting and operating efficiency, S&P said.

The company also has a large amount of highly liquid assets, the agency said, and is benefiting from the improving credit quality and risks associated with the wider Slovenian economy.

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