By the end of December 2022, the Croatian insurance market grew by 8.2% YoY. GWPs in the Non-life segment increased by 11.4%, while GWPs in the Life insurance segment decreased by 1.8% YoY.
The Croatian Insurance Association (HUO) has published its latest monthly report for the changes recorded by the Croatian insurance market, with the data for the entirety of 2022. In the report, we can see that the total GWPs in Croatia increased by 8.2% YoY, and ended the year at EUR 1.7bn. It should be noted that this includes both the insurance companies in Croatia, but also two other (Sava osiguranje and Groupama osiguranje) insurers that operate in Croatia but are based in other EU countries. Looking at the GWPs more closely, we can see that the Non-Life GWPs were the only driver of the overall growth, something that we have seen for a long time now, and they increased by 11.4% (or EUR 135.5m) and amounted to EUR 1.32bn by the end of the year. On the flip side, Life segment GWPs amounted to EUR 379.8m, a decrease of 1.8%, or EUR 7.01m YoY.
Total GWPs and Croatia osiguranje GWPs (both TTM) in December 2022 (EURbn)
Source: HUO, InterCapital Research
If we were to look at the Life segment more closely, we can see that the Company with the largest share is VIG, with a market share of 22.34%, an increase of 0.25 p.p. YoY, or EUR 518k. Following them, we have Allianz, which held 20.1% of the market, an increase of 5 p,p., or EUR 17.9m YoY, and Agram Life, which holds 10.9% of the total, an increase of 0.1 p.p. YoY. The only other company with close to 10% (besides Croatia osiguranje) share is Grawe Hrvatska, which holds 9.85% of the total, an increase of 0.71 p.p., or EUR 2.07m YoY. On the other hand, the largest decrease YoY was recorded by the aforementioned Croatia osiguranje (CO), whose market share stands at 10.65%, a decrease of 4.67 p.p. YoY, or EUR 18.7m. However, it should be noted that this decrease is a strategy that we have seen CO employ for a while now, shifting their focus from the low-margin, low-profit Life segment towards the much higher-margin Non-life segment. Besides CO, the only other notable decrease was recorded by Generali osiguranje, whose market share decreased by 2.62 p.p. (or EUR 10.5m) to 6.27%.
Shifting our focus to the Non-life insurance segment, here we can see CO’s strategy at work. In this segment, the Company holds by far the largest share, at 28.02% of the total market, which is an increase of 0.74 p.p., or EUR 46.2m YoY. The 2nd largest company by market share is Euroherc, standing at 15.63% of the total, an increase of EUR 7.23m in absolute amount, but a decrease of 1.17 p.p. in market share. What this would imply is that even though the Company managed to increase its GWPs in the Non-life segment, the expansion was slower than the overall market, thus leading to a loss in market share. Next up, we have Adriatic osiguranje, which recorded a market share of 13.94% in this market, representing an increase of 0.07 p.p. YoY (EUR 19.6m in absolute terms).
Inside the Non-life segment, we can also take a look at the GWPs divided by insurance policies. When looking at this, we can see that in absolute terms, the insurance policy that was most invested in is the Insurance against civil liability in respect to the use of motor vehicles, which increased by EUR 36m, or 9.2%. We can see that number of policies issued has increased by only 4.3% YoY, implying that average value of policy was up 4.9% YoY. This could imply that more higher policies were taken but also that price of policies could have increased. Following it, we have Vehicle insurance (casco policy) with a growth of EUR 23.9m (or 12.8%) YoY, Other asset insurance, which increased by EUR 18.8m (or 15.4%), Health insurance, at EUR 10.8m, or 11.6%, and Loan insurance, which grew by EUR 10.3m, or 20% YoY. On the other hand, the only notable decrease in GWPs in this segment was recorded by Guarantee insurance, which decreased by EUR 541k, or 25.6% YoY.
Moving on to Life insurance, we can see that the largest increase was recorded by Life or rent insurance in which the insurance contractor takes on the investment risk increased by EUR 24.3m or 45.9%. Meanwhile, the largest decrease was recorded by Life assurance, which decreased by EUR 31.4m, or 10% YoY.
Lastly, taking a look at Croatia osiguranje’s current market position, in the entire 2022, in the last twelve months, it collected 23.9% of all GWPs, representing a decrease of 0.19 p.p. YoY, but an increase of EUR 27.4m in absolute terms, again implying slower growth than market growth. In total, Croatia osiguranje collected EUR 406m of GWPs in 2022, an increase of EUR 27.4m YoY.
Croatia osiguranje TTM market share (November 2010 – November 2022, %)
Source: HUO, InterCapital Research