S&P reaffirms high "A" credit ratings with a stable medium-term outlook

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

Following its regular annual revision on 5 September 2022, S&P Global Ratings (hereinafter: S&P or the agency) reaffirmed the “A” Credit Rating and Financial Strength Rating with a stable medium-term outlook of the Triglav Group and thereby of its parent company and its subsidiary Pozavarovalnica Triglav Re. The high “A” credit rating exclusively reflects the Group's stand-alone credit profile. It is a reflection of very strong capitalisation of the Triglav Group and its profitable operations on account of its underwriting discipline, effective reinsurance protection, a high level of digitalisation, and benefits from economies of scale and other advantages of its leading market position in the region and Slovenia.

In its report, S&P assessed the Triglav Group’s business risk profile as strong. By maintaining its client-centric approach, the Group ensures profitable operations in both activities – insurance and asset management. In its operations, the Group uses its advantages arising from its leading market position in the Slovenian market and the region, its strong brand, well-diversified range of products and services, extensive sales network and the achieved level of business digitalisation. The reinsurance protection it uses in case of major CAT events is effective. According to S&P, the Group’s operations are resilient enough to maintain cost effectiveness and an appropriate pricing policy, increase volume and, on these bases, achieve stable and strong earnings even during high inflation and this year’s normalisation in claims frequency following the end of the COVID-19 pandemic-related restrictions. With regard to sustainable development (ESG) factors, S&P assesses their impact on credit ratings as neutral.

S&P assessed the Triglav Group’ financial risk profile as very strong. The agency believes that the Group maintained a very robust capital position at the “AAA” level according to S&P’s risk-based capital model, which is supported by the Group’s prudent underwriting discipline. Furthermore, due to the conservative investment portfolio and the high-quality capital structure, this year’s capital market volatility has not significantly impacted the Group’s financial strength. Strong capitalisation will enable the Group to better overcome further deterioration in economic and capital markets conditions. Also, the Group’s liquidity is very high.

The medium-term outlook reflects S&P’s expectations that the Group will continue to effectively implement its business strategy at least over the next two years, focusing on profitable operations, growth, digitalisation and further diversifying its range of products and income. The agency expects that despite the deteriorating business conditions the Group will maintain very strong capitalisation at least in the “AA” range over the next two to three years.

This information will be published on the website of Zavarovalnica Triglav d.d. at www.triglav.eu as of 6 September 2022 and will remain available on the Company's public website for a period of at least five years.