We consider that Sava Re's capital adequacy has stabilized in the 'AAA' level, according to our risk-based model, thanks to sustained stable retained earnings and an increasingly conservative risk profile. We also believe Sava Re's competitive position and profitability are benefiting from its organic and external growth, sound underwriting performance, and increasing operational and cost efficiency. As a result, we are raising our ratings on the group's core operating entities, Pozavarovalnica Sava and Zavarovalnica Sava, to 'A' from 'A-'. The stable outlook reflects our expectation that Sava Re will preserve its extremely strong capital adequacy and continue to expand profitably, sustained by conservative underwriting and investment practices. On July 30, 2018, S&P Global Ratings raised its long-term issuer credit and
