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


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 this year's regular revision, S&P Global Ratings (hereinafter: S&P or the agency) reaffirmed the "A" Financial Strength Rating with a stable medium-term outlook of the Triglav Group and thereby of its parent company Zavarovalnica Triglav and the Group member Pozavarovalnica Triglav Re. The credit rating is based on an assessment of the Group's stand-alone credit profile; all individual elements of the rating are at the same level as last year. According to the agency, Triglav's key strength is its leading market position in the region and Slovenia, with a well-diversified insurance portfolio enhanced by a large agency network and strong brand recognition. The Group's strong capitalisation is supported by its underwriting discipline and sound reinsurance protection that limits the Group's natural catastrophe losses.      

The Triglav Group's business risk was again assessed as strong and its financial risk profile as very strong by the S&P credit rating agency. According to the agency, the sudden price cap on supplemental health insurance in Slovenia and extreme natural catastrophes in the region will have negative effects on the Group's results this year. Since these are considered one-off effects, it is expected that the Group's results will improve next year mainly due to a strong recovery in non-life insurance and continued stable operations in life insurance and asset management. Furthermore, the Group managed to source stable and solid reinsurance protection, while pursuing a conservative investment portfolio.

The medium-term outlook reflects S&P's expectations that at least over the next two years the Group will continue to effectively implement its business strategy of profitable growth while further diversifying premiums and realised income streams. Despite increased natural catastrophe claims, discontinuation of its health supplemental business in Slovenia and moderating macroeconomic conditions, the Group is expected to maintain capitalisation at least at the "AA" range of S&P's capital model, while effectively improving its performance results. 

S&P's full report is published on the website under the Investor Relations tab.

This information will be published on the website of Zavarovalnica Triglav d.d. at as of 12 September 2023 and will remain available on the Company's public website for a period of at least five years.