In March 2022, total GWPs on the Croatian market increased by 8.9% YoY. GWPs in Non-life insurance increased by 9.8%, while GWPs in Life insurance grew by 6.3% YoY.

The Croatian Insurance Association has published the monthly insurance report relating to March 2022, showing the latest developments in the Croatian insurance market. In the report, we can see that the total GWPs of the Croatian insurance market increased by 8.9% YoY (or HRK 293.2m), continuing the trend of growth that the market has experienced in the past several months.

In total, GWPs collected amounted to HRK 3.58bn (it should be noted that this number includes both the insurers located in Croatia but also insurers operating in Croatia but which are based in other EU countries). The growth was supported by the increases in both the Non-life as well as the Life insurance segments.

Total Croatian TTM GWPs and Croatia osiguranje TTM GWPs in March 2022 (HRK bn)

Breaking the GWPs by these segments, we can see that the Life insurance increased by 6.3% (or HRK 49.3m) YoY and amounted to HRK 838.2m. The largest insurance company in this segment is Allianz Hrvatska, with a market share of 23.26% of the total, an increase of 1.92 p.p. YoY (or a yearly increase of HRK 26.6m). Following them, we have the largest Croatian insurance company, Croatia osiguranje, which has a 17.29% market share, representing an increase of 2.41 p.p. YoY (representing a yearly increase of HRK 27.6m). The 3rd largest insurance company, VIG recorded the largest decrease, losing HRK 37.7m, which represents a decrease of -5.9 p.p. in market share, ending March with 17.22%. Most other companies did not have significant changes, except Generali osiguranje, which grew its market share by 2.11 p.p., which is a relative increase of HRK 20.3m and ending March with 7.6% of the total market share.

Meanwhile, Non-life insurance (the largest segment by collected GWPs in Croatia, accounting for 76.6% of the total GWPs collected), increased by 9.76% (or HRK 243.9m) YoY. In this segment, Croatia osiguranje still maintains the largest percentage of the total at 30.6%, growing by 0.81 p.p. YoY, a relative increase of HRK 94.4m. Euroherc Osiguranje, the 2nd largest insurance company by market share, increased its GWPs by HRK 16.2m, but since this was lower than the entire market, they lost -0.63 p.p. YoY. The 3rd and 4th largest insurers, Adriatic Osiguranje and Allianz Hrvatska experienced an increase of 0.2 p.p. and a decrease of -0.03 p.p., respectively.

Looking at the largest changes by segments of the Non-life insurance, in absolute amounts, Insurance against civil liability in respect to the use of motor vehicles once again experienced the largest increase YoY, growing by HRK 50.9m or 7.26% YoY. The average value of policy sold increased by 3%, which implies increase in requirement criteria on which quotes are based or general increase in policy prices. Next up, we have Other assets insurance, which grew by HRK 42.7m (or 13.6%) YoY, followed by Vehicle insurance (casco policy) and Loan insurance, which grew by HRK 37.1m (or 10.3%), and HRK 29.7m (or 41.1%). On the flip side, Guarantee insurance decreased by HRK -1.69m, a decrease of 33.3% YoY.

Turning our attention to Life insurance by segments, Life or rent insurance in which the insurance contractor takes on the investment risk grew by HRK 148.8m, an increase of over 219% YoY, while at the same time, Life assurance decreased by HRK -100.7m, a decrease of -14.8% YoY.

Lastly, Croatia osiguranje currently holds 24.49% of all GWPs collected, a decrease of -0.57 p.p. YoY. In total, Croatia osiguranje’s GWPs amounted to HRK 2.97bn, an increase of HRK 255.5m YoY.

Croatia osiguranje TTM market share (November 2010 – March 2022, %)

In March, BET decreased by 0.03%, ending the month at 12,712.06 points.

The Bucharest Stock Exchange has published its monthly trading data for March 2022. During the first three months of 2022, trading activity significantly intensified compared to Q1 2021. In the report, they highlighted that the value of transactions executed in the first three months of this year with the shares of companies listed on the Bucharest Stock Exchange is higher than the value from the first 6 months of 2021. Compared to Q1 2021, the total trading value for equity transactions rose by 105% and totaled more than RON 5bn RON (over EUR 1bn).

Total equity turnover in Q1 2022 amounted to EUR 1.02bn, which was approximately EUR 16.2m per day. The top shares that had the highest turnover in March 2022 were Banca Transilvania (EUR 76.4m or 22.9% of total equity turnover), OMV Petrom (EUR 36.8m or 11% of total equity turnover), BRD (EUR 32.9m or 9.9% of total equity turnover), MedLife (EUR 31.8m) and Fondul Proprietatea (EUR 31.7m).

Looking over at the BET constituents, we can conclude that 11 out of 20 companies had positive returns in March 2022, marking the month as one of recovery. The largest relative growth was experienced by BVB, which managed to achieve a double-digit (+11.2%) growth. Following them, we have Medlife with a return of 7%, Nuclearelectrica with 6.8%, Transgaz and Fondul, with 6.5% and 6.46%, respectively. On the flip side, BRD decreased by -12.1%, Teraplast lost 9.6% of its value, while Purcari and Transport Trade Services lost 7.5% and 6%, respectively.

Following the drop that was experienced in February after the start of the Russian invasion of Ukraine, the continuation of the said conflict, and the inflationary pressures (especially on food and energy prices), March was a month when it could be said that the situation on the market started normalizing. However, given the current uncertainty, the situation could change quickly and deteriorate further. Taking all of this into account, the BET index remained at almost the same level as at the end of February, ending March at 12,712,06 points, a drop of only -0.03% MoM.