The ratings on Slovenia-based reinsurer Pozavarovalnica Sava, d.d. (Sava Re) reflect the company's strong capitalization, strong competitive position in Slovenia, and conservative investment profile. These positive factors are offset, however, by Sava Re's modest underwriting profitability. Capitalization is strong, reflecting strong capital adequacy, conservative reinsurance protection, strong quality of capital, and good reserving. This is offset by the relatively small risk-adjusted capital base in absolute terms. Sava Re's competitive position is driven by its dominant position in Slovenia and good positions in the countries of the former Yugoslavia. Sava Re is significantly dependent on one market, however, generating more than one-half of 2008 premium income from Slovenia. Standard&Poor's Ratings Services views Sava Re's quality of investment as strong.
