AM Best Information Services

OCTOBER 13, 2021 11:15 AM (EDT)

AM Best Affirms Credit Ratings of Zavarovalnica Triglav d.d. and Pozavarovalnica Triglav Re, d.d. Ljubljana

 Lucio Savastano
Associate Financial Analyst
+31 20 308 5430

Victoria Ohorodnyk
Associate Director
+31 20 308 5432

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

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


AMSTERDAM - OCTOBER 13, 2021 11:15 AM (EDT)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Zavarovalnica Triglav d.d. (Triglav), the operating holding company of the Triglav group, and Pozavarovalnica Triglav Re, d.d. Ljubljana (Triglav Re), a wholly owned subsidiary of Triglav. Both companies are domiciled in Slovenia. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Triglav’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings of Triglav Re factor in its strategic importance to Triglav, together with its strong integration into the group.

Triglav’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), on a standard and stressed basis. The assessment also considers the group’s prudent reserving and good financial flexibility, with access to equity and debt markets, as evidenced by its track record of debt issuance, most recently in 2019. Financial leverage and interest coverage are well within AM Best tolerances. An offsetting factor continues to be the high average guarantees embedded within the group’s life portfolio; however, the sale of most products with guarantees was discontinued in 2019.

Triglav’s operating performance continues to be strong, as evidenced by a solid five-year (2016-2020) weighted average return on equity (ROE) and combined ratio of 10.2% and 89.0%, respectively (as calculated by AM Best). At half-year 2021, the group’s combined ratio and ROE were 84.9% and 8.6%, respectively. Triglav’s performance is driven by excellent non-life technical earnings in its domestic market, where the group’s scale enables it to operate with a low expense base, and is supplemented by healthy investment income. The profitability of Triglav’s international operations in the West Balkans continues to be under pressure mainly due to intense competitive conditions and high operating costs. Nonetheless, the group continues to demonstrate modest improvements in earnings derived from this region, as it grows and actively seeks alternative, lower cost distribution channels.

Triglav benefits from its dominant position in its domestic market, with a 37% market share, in terms of gross written premium, in 2020. The group is also a dominant player in the Adria region, with approximately 21% market share. Through its various operating companies, Triglav is a global provider of insurance and reinsurance, leading to a well-diversified portfolio by product and geography. AM Best expects growth in premium volume to be moderate over the medium term, reflecting the combination of improving operating conditions in Slovenia, and the highly competitive nature of the international reinsurance market.

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 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.

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