Sava Insurance Group

The stable outlook on Sava's core operating entities reflects our expectation that the group's management will continue to implement its strategy of profitable growth while further diversifying premiums and income streams. Despite the integration of Vita and the economic cycle turn, we expect Sava to sustain a strong balance sheet with at least very strong capitalization and strong and stable earnings over the next two years, enabling the company to continue developing its domestic and foreign operations. We are unlikely to take a positive rating action in the next two years. An upgrade would be contingent on the group improving its competitive position, which could occur, for example, if sustainable economic growth propels Slovenia's income in GDP per capita terms

...Sava Insurance Group will sustain its market position in the attractive Slovenian insurance market while concentrating on profitable business opportunities. We expect Sava to successfully integrate its recently acquired Slovenian life insurance operation, NLB Vita (Vita), while continuing to leverage its distribution capabilities. We also anticipate that it will maintain its customer-centric approach to safeguard its operations stability, even during more economically challenging times. We believe the group will continue to leverage its solid balance sheet strength to tap profitable growth opportunities on domestic and international insurance and reinsurance markets. After first consolidating Vita into its accounts, in our view, Sava's capital position will remain resilient, above the '###' level in our capital model. At the end of 2019, Sava held a very robust capital position with buffers above the '###' capital range, according to S&P Global Ratings' capital model. The Vita acquisition...

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