Strong capitalization in relation to the risk base Strong competitive position in Slovenia Conservative investment profile Modest underwriting performance The ratings on Slovenia-based reinsurer Pozavarovalnica Sava, d.d. (Sava Re) reflect the company's strong capitalization, strong competitive position in Slovenia, and conservative investment profile. These positive factors are offset, however, by Sava Re's modest underwriting profitability. Capitalization is strong, reflecting extremely strong capital adequacy, highly conservative reinsurance protection, strong quality of capital, and good reserving. The net risk-adjusted capital base is small in absolute terms, however, at Slovenian tolar (ST) 30.6 billion in 2006 (about €125 million). Sava Re's competitive position is driven by its dominant position in Slovenia and good niche positions in the countries of the former Yugoslavia. Sava
