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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Revises Issuer Credit Rating Outlook to Positive for Dunav-Re a.d.o

AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” (Good) of Dunav-Re a.d.o (Dunav-Re) (Serbia). The outlook of the FSR is stable.

The Credit Ratings (ratings) reflect Dunav-Re’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The revision of the Long-Term ICR outlook to positive from stable reflects the improving creditworthiness of Dunav-Re’s parent company, Dunav osiguranje a.d.o (Dunav Insurance). In AM Best’s view, Dunav-Re is strategically important to its parent, and Dunav Insurance would be expected to provide prompt and sufficient support to Dunav-Re, if needed.

Dunav-Re’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment considers the company’s solid internal capital generation in recent years and good financial flexibility as a subsidiary of Dunav Insurance. Partially offsetting rating factors include Dunav-Re’s high exposure to Serbia’s financial system, with all of its investments held domestically, as well as its small capital base relative to global standards, which increases the sensitivity of its risk-adjusted capitalisation to potential shocks. Dunav-Re is also dependent on retrocession to manage domestically sourced business; however, the associated risks are mitigated partly by a stable retrocession panel of excellent credit quality.

Dunav-Re has a track-record of strong operating performance, evidenced by a five-year (2020-2024) weighted average return on equity ratio of 20.5%. Despite rapid growth of its international book of business over this period, the company has maintained a robust underwriting performance, illustrated by a five-year (2020-2024) weighted average combined ratio of 84.0%. AM Best expects prospective operating performance to be supported by Dunav-Re’s selective underwriting and stable investment income.

Dunav-Re is a multiline reinsurer domiciled in Serbia, with a dominant position in the local market, where the company generates the majority of its business. While Dunav Re’s profile is complemented by a growing portfolio of internationally sourced business, its scale remains small by global standards.

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.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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