AM Best Affirms Credit Ratings of Zavarovalnica Triglav d.d. and Pozavarovalnica Triglav Re, d.d.

Business Wire

AMSTERDAM--(BUSINESS WIRE)-- AM Best has affirmed the the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) of Zavarovalnica Triglav d.d. (Triglav) (Slovenia), the operating holding company of the Triglav group, and Pozavarovalnica Triglav Re, d.d. (Triglav Re) (Slovenia), a wholly owned subsidiary of Triglav. The outlook of these Credit Ratings (ratings) is stable.

The ratings of Triglav reflect the company’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings of Triglav Re factor in its strategic importance to Triglav, together with its strong integration into the group.

Triglav’s very strong balance sheet strength assessment is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment also considers the group’s strong earnings generation and good financial flexibility, with proven access to equity and debt markets. The BCAR includes credit for the group’s hybrid securities and for its contractual service margin for the life business. Adjusted financial leverage as calculated by AM Best stood at a relatively low level of 5.7% at year-end 2025. Interest coverage at year-end 2025 was strong.

Triglav’s performance remained strong in 2025, with a net/net combined ratio of 90.9% (2024: 91.0%) and return on equity (ROE) of 13.2% (2024: 14.0%), both as calculated by AM Best. Strong operating profits have been driven by excellent non-life profitability, organically supported by life, reinsurance and asset management businesses. The profitability of Triglav’s international operations in the West Balkans remains modest mainly due to intense competitive conditions and high operating costs. Nonetheless, the group continues to demonstrate improvements in earnings derived from this region, as it grows and actively seeks alternative, lower cost distribution channels.

For the first half of 2026, the group recorded a strong profit before taxes of EUR 105.2 million, resulting in an annualized ROE of 16.5%, as reported by the company. AM Best expects full-year results to be in line with Triglav’s strong operating performance assessment.

Triglav benefits from its leading position in its domestic market, with a 35% market share, in terms of gross written premiums (GWP), in 2025. The group is also a dominant player in the Adria region, with a market share of 17%. Triglav writes a well-diversified portfolio by product and geography. In 2025, the company entered the Italian motor market through a partnership with managing general agent Prima Assicurazioni S.p.A. The partnership has continued to drive premium growth in 2026.

AM Best considers Triglav’s ERM to be developed and appropriate for the company’s risk profile and operational scope.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.