OREANDA-NEWS. February 11, 2016.  Fitch Ratings says in a new report that the capital ratios of Slovenian insurance companies under Solvency II may be lower than under Solvency I.

The Slovenian insurance sector reported strong aggregated Solvency I coverage of 273% at end-2014. However, a high proportion of non-investment-grade and unrated instruments as well as the absence of transitional measures in Slovenia will lead to lower capital ratios under Solvency II.

Life premiums started to recover in 9M15 and non-life premiums were stable compared to 9M14, reflecting improving economic conditions in Slovenia. However, profitability remains vulnerable to shocks to the wider economy and continued low yields on Slovenian government bonds could threaten insurers' ability to earn guaranteed interest rates.

The Slovenian insurance market is dominated by a small number of companies. At end-9M15, the top three insurers accounted for 65% of the market, by gross written premiums; the top five accounted for 82%.

The "Slovenian Insurance Dashboard 2016" is available at www.fitchratings.com or by clicking the above link.