Credit rating of the Triglav Group and Zavarovalnica Triglav
With the improved credit ratings of »A« by both credit rating agencies S&P Global Ratings (hereinafter: S&PGR) and A.M. Best, the Triglav Group is the Slovene company with the highest credit ratings in the country. Both credit ratings have a stable medium-term outlook. The high credit rating of »A« is in line with the Group’s strategy (also see Section 4.2), thus enabling the Group an appropriate competitive position in insurance, reinsurance and financial markets and consolidating its financial strength and solid performance.
In 2016, S&PGR upgraded the Group’s long-term credit rating and the financial strength credit rating from »A–« to »A«. S&PGR improved the Group’s business risk profile to strong due to the lower sovereign risk and improved conditions on the Slovene insurance market. An even higher rating, i.e. very strong, was assigned to the Group's financial risk profile, primarily thanks to the Group’s diversified investment portfolio. S&PGR emphasised in its report that the Group has a comprehensive reinsurance protection.
Furthermore, S&PGR pointed out that 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 Group passed the hypothetical stress test for the exposure to sovereign risk, and should the latter be realised the Group’s rating would be higher than the sovereign rating of the Republic of Slovenia.
The A.M. Best credit rating agency upgraded the financial strength rating of »A–« to »A« (Excellent) and the issuer credit rating of »a–« to »a« (Excellent) of both Zavarovalnica Triglav and Pozavarovalnica Triglav Re. The credit ratings reflect the Company’s consistently excellent performance over the past five years, its leading position on the Slovene market and strong Triglav brand recognition in the region. According to A.M. Best, the Company’s performance on the domestic market is affected by the improved but still challenging situation and fierce competition in the market. Nevertheless, the Company performed well in the pension and health insurance markets. The Company has established a comprehensive risk management and underwriting system, which is expected to improve even further. A.M. Best raised the credit ratings of the parent company also as the result of strong and risk-adjusted capital level of the Company. It is expected that the Company will maintain its prudent capital management and the adopted dividend policy, which will support the target capital adequacy of the Group. Furthermore, the credit rating agency upgraded the financial strength rating and the long-term credit rating of the Company's subsidiary Pozavarovalnica Triglav Re to »A« and »a« respectively, thereby confirming its key role as the reinsurer of all Triglav Group members.