Sava Re has a strong competitive position, mainly because it is the second-largest primary insurer in Slovenia, and also operates in international reinsurance. The group's foreign primary insurance operations in the Adria region are still considerably lacking scale and performance, and do not therefore materially diversify the group's revenues and operating earnings. In our view, Sava Re faces intermediate industry and country risk, which reflects a blended assessment of the various insurance markets where it operates. We think the group will maintain its capital and earnings position at very strong, supported by stable earnings and a moderate growth rate. Sava Re has an intermediate risk position, reflected by a conservative investment portfolio and limited underwriting risk. It has adequate financial
