IC Market Espresso 18 Jun 2019

Croatia’s GWP Development in May 2019

In May 2019, GWPs rose 8.5% compared to last year. GWPs in non-life insurances grew 11.71% YoY, while life insurance increased 0.42% YoY.

In May 2019, GWP’s rose 8.5% compared to the same period last year. The total amount of GWPs collected reached HRK 4.96bn (includes insurers located in Croatia and insurers operating in Croatia but based in another EU country).

Total Croatian T12 GWP and Croatia Osiguranje T12 GWP (HRK bn)

The amount of GWPs in non-life insurances, which traditionally account for the biggest portion, grew 11.71% YoY, amounting to HRK 3.47bn. Meanwhile, life insurance observed an increase of 0.42% YoY, reaching HRK 1.42bn.

Croatia Osiguranje (together with Croatia Osiguranje Kredita) continues to account for 28.9% the market, and the company’s market share decreased by 3.4 p.p. When observing their GWPs, they amounted to HRK 1.44bn, which represents a decrease of 2.8% YoY.

Croatia Osiguranje T12 Market Share (%)

Institut IGH Contracts a Deal Worth EUR 3.43m

To put things into perspective, the mentioned deal would account for 13% of the company’s T12 2019 operating revenues.

Institut IGH published a document stating that they have been selected as the nominated consultant, together with the Romanian construction company Constructii, to design and complete the construction of 26 km of the new motorway on the section 3C: Suplacu de Barcău – Borș of the Brașov – Târgu Mureș – Cluj – Oradea Motorway.

The mentioned deal was concluded with the Romanian National Company of Road Infrastructure Administration and the total project value is EUR 76.4m. Of that, the contract value for IGH amounts to EUR 3.43m. To put things into perspective, the mentioned deal would account for 13% of the company’s T12 2019 operating revenues.

Note that the contract implementation is expected to start during the summer, while the design period is 6 months and the construction period is 24 months.

YTD Performance of Croatian Sector Indices

For today, we are brining you a short overview of YTD performance of 5 Croatian Sector indices.

As we covered last week the YTD performance of CROBEX and the impact of each individual component on index movement, for today we decided to bring you an overview of the YTD performance of Croatian sector indices.

Of the 5 observed sector indices, 3 recorded an increase YTD, while 2 observed a decrease, which can be observed in the graph below.

YTD Performance of Sector Indices

CROBEXindu (industry) observed the highest increase of 10% YTD. Of the CROBEXindu components, Varteks observed the highest share price increase of 38.5%, followed by Končar which observed an increase of 29%. The only component of this index that observed a decrease was Đuro Đaković (-21.3% YTD).

YTD Performance of CROBEXindu Components

YTD Performance of CROBEXnutr Components

CROBEXnutr (nutrition) follows with a 4.9% increase YTD. When observing each component of the index, Podravka observed an increase of 10.13%, Atlantic observed a 6% increase and Kraš observed a 3.74% increase.

Next comes CROBEXturi (tourism) with a 2% YTD increase. Of the index components, Valamar observed the highest increase of 7.63%, followed by Arena Hospitality which increased by 6.16%. On the flip side, Jadran was the only company to observe a YTD decrease (-6.55%).

YTD Performance of CROBEXturi Components

The two sector indices which observed a YTD decrease are CROBEXkons (construction) (-16.9% YTD) and CROBEXtran (transport) (-22.1% YTD).

Uljanik observed the highest decrease in the transport sector (-45.2% YTD), while Dalekovod observed the highest decrease in the construction sector (-33.6% YTD)

YTD Performance of CROBEXtran Components

YTD Performance of CROBEXkons Components