Strong capitalization for the risk base Conservative investment profile Modest underwriting performance High competitive pressure in Slovenian insurance market The ratings on Slovenia-based reinsurer Pozavarovalnica Sava, d.d. (Sava Re) reflect the company's strong capitalization and conservative investment profile. These positive factors are offset, however, by Sava Re's modest underwriting profitability and high competitive pressure in Slovenian insurance market. The strong capitalization reflects extremely strong capital adequacy, conservative reinsurance protection, strong quality of capital, and good reserving. This is offset by the relatively small size of the risk-adjusted capital base in absolute terms. Standard&Poor's Ratings Services views Sava Re's quality of investment as strong. The company invests its liability fund (assets backing technical reserves) in highly rated bonds (67%
