AM Best affirms Triglav and Triglav Re ratings with stable outlook

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AM Best affirms Triglav ratings

Highlights

AM Best affirms Zavarovalnica Triglav d.d. and Pozavarovalnica Triglav Re, d.d. with Financial Strength Rating of A (Excellent) and stable outlook as of 2026.
Triglav reports 2025 combined ratio of 90.9% and 2026 H1 profit before tax of EUR 105.2 million, with an annualised return on equity of 16.5%.
Triglav maintains 35% market share of gross written premiums in Slovenia and 17% across the Adria region, expanding further via its 2025 Italian motor market entry.

Ratings rationale and 2026 performance

As reported by AM Best, Zavarovalnica Triglav d.d. and its wholly owned subsidiary Pozavarovalnica Triglav Re, d.d. retain a Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of "a" (Excellent), with stable outlooks.

AM Best says the ratings on Triglav are supported by a very strong balance sheet, strong operating performance, a neutral business profile and appropriate enterprise risk management. For Triglav Re, the agency also factors in its strategic importance to the parent group and its strong integration within the organisation.

Triglav's balance sheet assessment remains underpinned by risk-adjusted capitalisation at the strongest level under Best's Capital Adequacy Ratio, alongside strong earnings generation and good financial flexibility. AM Best says adjusted financial leverage stands at 5.7% at year-end 2025, while interest coverage is strong.

The group's operating results remain solid in 2025, with a net/net combined ratio of 90.9%, compared with 91.0% in 2024, and return on equity of 13.2%, compared with 14.0% a year earlier. For the first half of 2026, Triglav reports profit before tax of EUR 105.2 million and an annualised return on equity of 16.5%, and AM Best expects full-year results to remain in line with its strong operating performance assessment.

Regional market position and growth outlook

Triglav continues to benefit from its scale in its home market and across the Adria region. In 2025, the group holds a 35% share of gross written premiums in Slovenia and a 17% market share across the Adria region, supported by a diversified portfolio by product and geography.

AM Best notes that excellent non-life profitability continues to drive earnings, with additional support from life, reinsurance and asset management operations. Profitability in the group's West Balkans international business remains modest because of intense competition and high operating costs, although the company continues to improve earnings there as it expands and seeks lower-cost distribution channels.

Expansion in Italy also contributes to premium growth. Triglav entered the Italian motor market in 2025 through a partnership with managing general agent Prima Assicurazioni S.p.A., and that arrangement continues to support business growth in 2026.

AM Best also considers the group's enterprise risk management framework to be developed and appropriate for its risk profile and operational scope, reinforcing the current ratings position.

In our earlier article on sovereign resilience in a higher-rate environment, we examined how geopolitical tensions and elevated fiscal spending are increasing borrowing and refinancing risks for governments as funding costs stay high. We noted that emerging and frontier markets are particularly exposed due to heavier interest-service burdens, while energy and food-price shocks linked to major conflicts can worsen inflation and strain public finances.

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