AM Best

AM Best Affirms Credit Ratings of Dunav-Re a.d.o. Belgrade

 Stanislav Stoev, ACCA
Financial Analyst
+44 20 7397 6264

Valeria Ermakova
Associate Director, Analytics
+44 20 7397 6264

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644


LONDON - JULY 31, 2020 11:07 AM (EDT)
AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Dunav-Re a.d.o. Belgrade (Dunav-Re) (Serbia), a subsidiary of Dunav Osiguranje a.d.o. Belgrade (Dunav Insurance) (Serbia). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Dunav-Re’s balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

Dunav-Re’s risk-adjusted capitalisation is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and is expected to remain at this level, with internal capital generation supporting the company’s moderate growth plans. Offsetting factors in the balance sheet strength assessment include concentration toward Serbia’s financial system, the small size of the company’s capital base and its high dependence on reinsurance. The associated credit risk is mitigated partially by the excellent credit quality of Dunav-Re’s retrocession panel.

Dunav-Re has a track record of good underwriting performance, with a five-year (2015-2019) weighted average combined ratio of 72.3%. Prospectively, AM Best expects Dunav-Re to achieve good underwriting results, and to report an average return on equity of approximately 10%. The company’s results remain susceptible to volatility due to Dunav-Re’s exposure to catastrophe events.

Dunav-Re, a multi-line reinsurer operating in Serbia, has a dominant position in its core market, where it generates the majority of its business, with Dunav Insurance being its largest cedant. The company’s profile is limited in terms of premium volume and geographical spread. The company also is active outside of its domestic market, where it wrote approximately USD 6.2 million or 12.3% of all gross written premiums (USD 5.2 million or 51.9% of all net written premiums) at year-end 2019.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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AMB# Company Name
093006 Dunav-Re a.d.o.