In June, passenger car registration in the EU decreased by 15.4% YoY, totalling 886,510 units as expected. Meanwhile, in January – June 2022 EU demand for new cars decreased 14% YoY. Outlook is threatened by the lack of electric cabling components. In Croatia in the mentioned period passenger car registration reported a slightly lower decrease of 11.9% YoY, while only in June a decrease of 28.4% YoY was noted. Furthermore, the outlook doesn’t look too optimistic – Russia’s invasion of Ukraine disturbed the production of harnesses in Ukraine, used for holding together electric cabling inside of a car.

In June 2022, passenger car registration in the EU decreased by 15.4% YoY, totalling 886,510 units. The biggest decrease reported in the EU by far was in Germany, France and Italy, where the reported decrease amounted to 49.6k units, 28.4k units and 22.5k units, respectively, representing 18%, 14.2% and 15% YoY decrease. Furthermore, no major regions reported an increase in new passenger car registrations.

When observing January – June 2022, the situation is quite similar – EU demand for new cars decreased by 14% YoY, reaching 4.6m units registered in total. When observing the whole period, Italy, as the major market, reported the highest decrease of 22.7% YoY with total car registration amounting to 684.3k units. This decrease was further amplified by a decrease in another two major markets, Germany and France. Germany reported a decrease of 11% YoY and France reported a decrease of 16.3%, which is a decrease of 153k and 151k units of cars registered, respectively. Spain, which is also considered a major market, also reported a decrease of 10.7% YoY in the mentioned period.

Looking at the region, when observing the whole period since the beginning of the year, Croatia reported a decrease of 11.9% YoY, amounting to 23k units registered. Looking at data only for June, Croatia reported a decrease of 28.4% YoY, amounting to 5k units registered. Slovenia reported a similar situation – when observing the whole period, Slovenia reported a decrease of 16.6% YoY, amounting to 26k units of the car registered.

Also, the outlook is still threatened by the lack of harnesses, which is used to hold together electric cabling inside of a car and produced mostly in Ukraine – which due to obvious reasons, does not look optimistic. Some suppliers in Ukraine have begun restarting operations, according to car manufacturers. Almost all plants used in production currently working are unable to produce at the full rate of capacity.

At the end of June 2022, the total GWPs in the Croatian insurance market increased by 7.5% YoY. GWPs in Non-life insurance increased by 10.8%, while GWPs in Life insurance decreased by 2.8% YoY.

The Croatian Insurance Association, (HUO) has published its monthly report on the changes recorded by the Croatian insurance market and its constituents, for June 2022. In the report, we can see that the total GWPs of the Croatian insurance market grew by 7.5% YoY, and amounted to HRK 6.96bn. The insurance market in Croatia includes both the insurers from Croatia as well as insurers that operate in Croatia but are based in other EU countries, which currently, refers to Sava osiguranje only. The growth recorded by the total GWPs had been driven by the increase in Non-life insurance, while simultaneously, Life insurance decreased, continuing its negative trend.

Total Croatian TTM (trailing twelve months) GWPs and Croatia osiguranje GWPs in June 2022 (HRKbn)

Taking a look at the GWPs by these segments, Life insurance decreased by 2.8% (or HRK 44.6m) and amounted to HRK 1.55bn. Breaking this down further by looking at the insurance companies, Allianz holds the highest percentage of the Life insurance market share, at 22.3%, which is an increase of HRK 86.5m (or 33.5%) YoY, and a gain of 6.07 p.p. in terms of market share. Following them, we have VIG, at 21.38% of the total Life market share. This share represents a decrease of 2.62 p.p. YoY, a loss of HRK 50.9m or 13.4% of the Life insurance GWPs for this company. The next largest company by market share, Croatia osiguranje (which is also the largest overall Croatian insurance company), recorded a market share of 12.68%, which is a decrease of 4.87 p.p. YoY, or a change of -29.7% (or HRK 82.8m) in terms of GWP amount.

On the other hand, Non-life insurance, which is the largest segment in terms of GWPs collected, accounting for 77.7% of the total GWPs, increased by 10.8% YoY and amounted to HRK 5.41bn at the end of June 2022. In terms of insurance companies, Croatia osiguranje still maintains by far the largest market share, at 30.8%, which is an increase of 1.13 p.p. YoY, or HRK 216.2m (+15.1%) in terms of total GWP growth. Following them, we have Euroherc osiguranje, which at the 14% market share recorded a decrease of -1.26 p.p. YoY, but considering their total GWPs increased faster than other companies in the segment, the company still recorded a positive increase of HRK 13m, or 1.76%. Following them, we have Adriatic osiguranje, which at 12.3% recorded an increase of 0.13 p.p. YoY in terms of market share, as well as an increase of 12.2% (or HRK 71.3m) in terms of total GWPs.

Other companies did not record significant increases in market share YoY, but some of the did record considerable GWP growth, in absolute terms. This refers to Allianz Hrvatska, which increased its GWPs by HRK 56.9m (or 12.3%) in this segment, as well as VIG, which increased its GWPs by HRK 51.2m (or 15.6%) YoY.

Meanwhile, looking at the changes by segments in Non-life insurance, in absolute terms, Other asset insurance still recorded the highest increase YoY, at HRK 126.6m (or 19.9%), followed by Insurance against civil liability in respect to the use of motor vehicles, at HRK 96.8m (or 6.5%), and finally, Vehicle insurance (casco policy), at HRK 86.6m, or 12.1% YoY. On the flip side, Insurance against other liabilities decreased the most, at HRK 11.8m or -3.57% YoY.

At the same time, breaking the Life insurance by segments, Life or rent insurance in which the insurance contractor takes on the investment risk increased by HRK 180.3m (or 98.3% YoY), while on the flip side, Life assurance decreased by HRK 225.2m (or -16.9%) YoY.

Finally, taking a look at Croatia osiguranje’s position, in the last twelve months, it collected 24.21% of all GWPs, representing a decrease of -0.69% YoY. This would mean that the total GWPs of the Company amounted to HRK 2.93bn, an increase of HRK 152.3m. What this can tell us is the fact that Croatia osiguranje continued its GWP growth, but that in total, it grew slower than the overall Croatian insurance market.

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

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