The ratings on Slovenia-based reinsurer Pozavarovalnica Sava, d.d., the parent and major operating company of the Sava Re Group (Sava Re), reflects Sava Re's diversified insurance portfolio, well balanced between primary and reinsurance premium income, strong liquidity, and very good levels of capital. These strengths are offset, however, by Sava Re's lack of a strong position in at least one sizable and stable insurance market, and difficult macroeconomic and financial conditions in Slovenia. The 'BBB+' ratings on Pozavarovalnica Sava exclusively reflect Sava Re's group credit profile, which we assess at 'bbb+', without including any uplift deriving from its government-related entity (GRE) status. We regard the likelihood of extraordinary support from the Slovenian government (AA-/Stable/A-1+) in the event of financial distress
