SAVA Re simplifies its group structure by a quadruple merger
The shareholders' general meetings of the four companies have consented in June to Zavarovalnica Maribor's merger by acquisition of Zavarovalnica Tilia and the cross-border merger of the two Croatian companies to Zavarovalnica Maribor, a Sava Re press release announced.
Thus, Zavarovalnica Maribor (100% owned by SAVA Re) will acquire Zavarovalnica Tilia, also entirely a SAVA Re property. Zavarovalnica Maribor will also take over Croatian non-life insurer Velebit osiguranje (98.02%-owned by SAVA Re) and life insurer Velebit zivotno osiguranje (88.71% SAVA Re owned). In May, Zavarovalnica Maribor set up a branch office in Croatia, through which the merged insurer will operate.
The merger documents have already been submitted to Slovenia's Insurance Supervision Agency for approval.
The transformation of the SAVA Re Group will provide the Group with a better competitive position in the two markets, both due to its greater cost-effectiveness and greater responsiveness to client needs. Furthermore, it is part of the SAVA Re Group's long-term strategy to consolidate its position as the second largest insurance group in the region.
Zavarovalnica MARIBOR and Zavarovalnica TILIA have shown good performance and achieved planned objectives in recent years. After its integration into the SAVA Re Group, Zavarovalnica MARIBOR exceeded initial restructuring objectives, while Zavarovalnica TILIA established itself as an innovative and recognizable insurance company. Both Croatian companies currently operate in accordance with expectations, taking into consideration the challenging conditions on the Croatian insurance market.
In 3Q2015, the rating agency Standard & Poor's upgraded the ratings on SAVA Reinsurance Company to A- with a stable outlook. The rating upgrade is vital for realizing the group's growth strategy in international reinsurance markets.