AM Best Affirms Credit Ratings of Bosna Reosiguranje d.d. Sarajevo

AUGUST 05, 2026 08:40 AM (EDT)

AM Best Affirms Credit Ratings of Bosna Reosiguranje d.d. Sarajevo

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FOR IMMEDIATE RELEASE

LONDON - AUGUST 05, 2026 08:40 AM (EDT)
AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of "bbb-" (Good) of Bosna Reosiguranje d.d. Sarajevo (Bosna Re) (Bosnia and Herzegovina [BH]). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Bosna Re's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

Bosna Re's balance sheet strength is underpinned by its risk-adjusted capitalisation, which is expected to remain at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), albeit with a relatively small buffer. Investment risk remains a key driver of capital consumption in BCAR, reflective of Bosna Re's concentration in domestic assets, which exposes the company to elevated levels of economic, political and financial system risks associated with BH. The ratings also consider Bosna Re's relatively small capital base, as compared to larger international reinsurers, which exposes the company's risk-adjusted capitalisation to potential volatility. Dependence on retrocession remains high; however, the associated credit risk is mitigated partly by a stable retrocession panel of excellent credit quality.

Bosna Re has a track record of adequate operating performance, evidenced by a five-year (2021-2025) weighted average return-on-equity of approximately 9%, supported by profitable underwriting and investment activities. Technical performance remained positive in 2025, as evidenced by a combined ratio of 95.6%, and is in line with the company's five-year (2021-2025) weighted average combined ratio of 95.0%. Investment results, albeit modest, have supplemented earnings consistently in recent years, with a five-year (2021-2025) weighted average investment yield of 2.9%. AM Best expects operating performance to remain supported by a stringent underwriting strategy focusing on prudent risk selection and a comprehensive retrocession protection.

Bosna Re has a dominant position in its domestic market, benefitting from preferential market access and commanding an approximate 80% share of the domestic reinsurance market (as measured by gross written premiums). This translates into 90% of premiums emanating from BH, which is a small insurance market with constrained growth opportunities. The company has achieved some diversification through underwriting selective international reinsurance business.

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 (BCR), Best's Performance Assessments (PA), Best's Preliminary Credit Assessments (PCA) 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 specializing 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.