AM Best

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


Stanislav Stoev, ACCA, CFA
Senior Financial Analyst
+44 20 7397 0306

Kanika Thukral
Associate Director, Analytics
+44 20 7397 0327

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318


LONDON - AUGUST 04, 2023 09:50 AM (EDT)
AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Dunav-Re a.d.o. (Dunav-Re) (Serbia). The outlook of these Credit Ratings (ratings) is positive.

The ratings reflect Dunav-Re’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. In addition, the ratings reflect a neutral impact from Dunav Re’s ownership by Dunav osiguranje a.d.o. (Dunav Insurance).

Dunav-Re’s risk-adjusted capitalisation remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects future business growth to be supported by internal capital generation and financial support from the company’s parent. Dunav-Re is somewhat dependent on retrocession to manage domestically sourced business; however, the credit risk associated with this is mitigated partially by the excellent credit quality of the company’s retrocession panel. Offsetting factors in the balance sheet strength assessment include the company’s high exposure to Serbia’s financial system and its small capital base.

Dunav-Re has a track record of favourable underwriting performance, with a five-year (2018-2022) weighted average combined ratio of 80.8%. However, the company’s business written outside of Serbia has grown rapidly in recent years. Although initial indications suggest that this new business is performing well, the sustainability of its performance will not be clear for some time. In addition, Dunav-Re’s technical results remain susceptible to potential volatility due to its exposure to catastrophe events. Overall profitability is supported by positive investment results. The positive outlooks reflect AM Best’s expectation that the company will continue to demonstrate a trend of favourable underwriting and operating performance over the medium term.

Dunav-Re is a multiline reinsurer operating from within Serbia. It has a dominant position in its local market, where it generates the majority of its business, with Dunav Insurance being its largest cedant. The company is active outside of its domestic market and expects internationally sourced business to be the primary driver of premium growth in the medium term.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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

Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.

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