Sava Re: Rating agency Standard &Poor's revises the medium-term outlook to positive from stable

Following their regular annual review in July 2017, the Standard & Poor's rating agency affirmed the financial strength rating of "A-" (excellent) of Sava Re, revising also its medium-term outlook to positive from stable.

The agency assesses that Sava Re is successfully implementing its risk management strategy. On the reinsurance underwriting side, it recognises the enhanced activities aimed at catastrophe risk management, as well as the more conservative underwriting in the international reinsurance markets. On the investments side, it recognises the contribution of investment portfolio diversification to the stability of returns. All this in turn contributes to greater stability of the expected operating results. Further, the rating agency assesses that the company's financial position is to strengthen further, also due to an increased focus on operational effectiveness. The agency assumes that Sava Re will benefit from healthier credit and macroeconomic conditions in Slovenia to further improve the scale and efficiency of its operations. Based on all this, S&P raised Sava Re's medium-term outlook to positive, which also indicates that the rating agency could raise Sava Re's rating over the next 12-24 months if Sava Re continues maintaining stable capital and earnings, growing its business profitability, further improving its operating efficiency, and maintaining capital adequacy in excess of the agency's AAA threshold. Read the full story
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