At the end of November 2022, the Croatian insurance market increased by 7.8% YoY. GWPs in the Non-life insurance segment grew by 11.2%, while GWPs in the Life insurance segment declined by 2.9%.

The Croatian Insurance Association, HUO, has published the latest report pertaining to the developments recorded by the Croatian insurance market, with cumulative data ending in November 2022. According to the report, the total GWPs in Croatia increased by 7.77% YoY and totaled HRK 11.7bn. This figure, however, includes both the insurance companies in Croatia, but also insurers that operate in Croatia but are based in other EU countries. Besides Sava osiguranje, this month a new insurance company, Groupama osiguranje also joined the fray. Coming back to the GWPs, the growth was driven by the increase in the Non-life segment, which recorded an increase of 11.2% YoY, or HRK 921.8m, amounting to HRK 9.14bn. On the other hand, the Life insurance GWPs continued to decrease, declining by 2.96%, or HRK 77.9m, and amounted to HRK 2.56bn by the end of November 2022.

Total Croatia osiguranje TTM (Trailing twelve months) GWPs and Croatia osiguranje GWPs in October 2022 (HRKbn)

Source: HUO, InterCapital Research

Breaking these segments down, in Life insurance, the largest market share is held by VIG, with a market share of 23.71%, an increase of 1.73 p.p. YoY. Following them, we have Allianz, at 18.42%, an increase of 0.22 p.p., as well as Croatia Osiguranje, with a market share of 11.16%, a decrease of 4.68 p.p. YoY. The only other company with a market share above 10% is Agram Life osiguranje, which stands at 10.93%, representing an increase of 0.36 p.p. YoY. In terms of growth/decline recorded, the largest absolute growth in this segment was recorded by Allianz, which increased its GWPs by HRK 64.9m, or 16.1%, followed by VIG, with an increase of 27.3m, or 4.74%. On the other hand, the largest decrease was recorded by Croatia osiguranje, which declined by HRK 131.1m, or 31.6%, followed by Generali osiguranje, with a decline of HRK 72.4m, or 30.7%. It should be noted that the Life insurance segment carries tiny margins compared to the Non-life, and as such, the decrease recorded by Croatia osiguranje is part of a deliberate plan of focus on the higher margin Non-life insurance, rather than the underperformance by the Company.

Moving on to Non-life insurance, the largest market share held here is by Croatia osiguranje, which has 28.54% of the total market, representing an increase of 0.77 p.p. YoY. Following them, we have Euroherc at 15.21%, representing a decrease of 1.06 p.p. YoY, and Adriatic osiguranje, at 13.45%, an increase of 0.14 p.p. YoY. In terms of growth/decline in GWPs, the largest absolute growth was recorded by Croatia osiguranje, with HRK 322.7m, or 14.3%, followed by Adriatic osiguranje, with HRK 133.8m, or 12.4%, and VIG, with an increase of 63.2m, or 11.9%. No Company recorded a decline in this segment, meaning that most of the companies are focusing on it. Overall, the growth recorded by Croatia osiguranje (14.3%) is higher than the overall Non-life market growth (11.2%), meaning that the Company is not only increasing its GWPs but also growing faster than the overall market, thus gaining market share.

Next up, we looked at the Non-life insurance segment in terms of types of insurance. In absolute terms, the largest growth was recorded by Insurance against civil liability in respect to the use of motor vehicles, with a growth of HRK 230.7m, (or 8.44%), followed by Vehicle insurance (casco policy), with a growth of HRK 165.7m, (or 12.8%), and other asset insurance, which increased by HRK 148m, (or 17.1%). Moving on, the only insurance categories which increased by more than HRK 50m were Life insurance, with an increase of HRK 68.6m, (or 10.4%), Loan insurance, with a growth of HRK 62.9m (or 17.5%), and Fire and elementary damage insurance, which increased by HRK 62.7m, (or 8.4%).

Finally, taking a look at Croatia osiguranje’s current market position, in the last 12 months, the Company collected 23.98% of all GWPs, a decrease of 0.12 p.p. YoY. Overall, this would mean that CO’s GWPs increased by HRK 30.4bn and an increase of HRK 212.3m.

Croatia osiguranje TTM market share (February 2011 – November 2022, %)

Source: HUO, InterCapital Research