In our opinion, Slovenian multiline insurance group Sava Re's capital adequacy and position in its domestic market have strengthened along with its successful integration of mid-market Slovenian insurer Zavarovalnica Maribor. Sava Re's premium base has significantly increased, and it now enjoys the No. 2 position in Slovenia's direct insurance market and stronger earnings capacity. Moreover, Sava Re maintains sensible margins on property/casualty claims reserves, and its overall capital management is conservative. We are consequently raising our ratings on Sava Re's holding and core operating entity, Pozavarovalnica Sava, to 'A-' from 'BBB+'. The stable outlook on Pozavarovalnica Sava reflects our expectations that Sava Re will maintain a capital in excess of our 'AAA' benchmark, supported by conservative capital management. On July
