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10/09/2018

High “A” Credit Rating with Stable Medium-Term Outlook Reaffirmed

ZAVAROVALNICA TRIGLAV, d.d., Ljubljana

High “A” Credit Rating with Stable Medium-Term Outlook Reaffirmed

In accordance with the Ljubljana Stock Exchange Rules and the applicable legislation, ZAVAROVALNICA TRIGLAV d.d. hereby publishes the following notice:

On 7 September 2018, S&P Global Ratings (hereinafter: S&P) confirmed the “A” Long-Term Credit Rating and Financial Strength Rating of Triglav Group and thereby of its parent company Zavarovalnica Triglav and its subsidiary Pozavarovalnica Triglav Re. Both credit ratings have a stable medium-term outlook. According to S&P, the reaffirmed high ratings reflect the Group’s leading position both in the Slovene growing market and the region, its stable and profitable operations in recent years and a sound risk-based capital adequacy.

BUSINESS RISK PROFILE ASSESSED AS STRONG. S&P assessed the business risk profile of Triglav Group as strong. This is based on its market leadership in Slovenia and the region, its profitable and well-diversified insurance portfolio enhanced by a large sales network and strong brand recognition. As the important aspects, S&P pointed out the Group’s strategic client-centric approach, its leading position in offering innovative risk covers in the region and the use of alternative sales channels, such as the option to purchase insurance online.

FINANCIAL RISK PROFILE ASSESSED AS VERY STRONG. According to S&P, the Group’s capital adequacy meets the “AAA” rating requirements, also reaffirmed by the Solvency II ratio of 222% as at the 2017 year-end. Sound financial stability is ensured by strong business profitability, a very conservative and stable reinsurance protection and prudent management of provisions. Triglav has a good diversified investment portfolio, with its assets mostly invested in the euro area. S&P regards the Group’s exceptional liquidity as its important advantage. It is based on steady premium income and a liquid asset portfolio, allowing Triglav to manage unexpectedly large claims. Furthermore, the Group’s experienced management is effectively adjusting the Group to the changing environment and market conditions, while at the same time focusing on Triglav’s core activities (insurance and asset management) and on implementing its set strategy.

The “A” credit rating exclusively reflects the Group's standalone credit profile and does not include any uplift from the insurer's status as a government-related entity.

The stable medium-term outlook reflects the S&P’s expectations that the Triglav Group will continue to effectively implement its business strategy, focusing on sustaining profitability, growth and very strong capital adequacy over the next two years.

This information will be published on the website of Zavarovalnica Triglav d.d. at www.triglav.eu as of 10 September 2018  and will remain available on the Company's public website for a period of at least five years.