The ratings on Slovenia-based reinsurer Pozavarovalnica Sava, d.d. (Sava Re) reflect the company's strong capitalization, good and sustainable competitive position, and conservative investment profile. The ratings are offset, however, by Sava Re's geographically limited competitive position and high level of exposure to insurance affiliates. Capitalization is strong, reflecting an extremely strong level of capital adequacy (capital adequacy ratio in the 'AAA' range), highly conservative reinsurance protection, strong quality of capital, and good reserving level. These strengths are partially offset, however, by the small size of the net risk-adjusted capital base in absolute terms, at Slovenian tolar 19.9 billion ($102.8 million). Sava Re's competitive position is driven by its dominant position in Slovenia and good niche positions in the countries of
