S&P Says Sava Re Ratings Unaffected by Recent Acquisitions

January 8, 2007

Standard & Poor’s Ratings Services stated that “its ratings and outlook on Slovenia-based reinsurer Pozavarovalnica Sava, d.d. (Sava Re – BBB+/Stable/–) are unaffected by the Jan. 4 announcement that Sava Re has acquired 53.65 percent of the third-largest Macedonia-based insurer, Tabak Osiguranje A.D.

“This follows Sava Re’s earlier announcements of insurance acquisitions of 98.2 percent of Polis Osiguranje d.d. in Serbia and 51 percent of Kompania e Sigurimeve Dukagjini in Kosovo.”

S&P said it “believes that the acquisitions will potentially improve Sava Re’s competitive position by providing geographic diversification. There will, however, be some risks associated with the integration process of the new subsidiaries, although these are expected to be largely mitigated through the formation of dedicated subsidiary management teams at Sava Re.”

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