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

After closing out the month of November 2022, Slovenian mutual funds AUM amounted to EUR 4.15bn, representing a decrease of 4.2% YTD, 0.8% YoY, but an increase of 4.3% MoM.

Recently, the Slovenian Securities Market Agency (ATVP) published the latest report on the changes recorded by the Slovenian mutual funds, for the month of November 2022. Looking at this data can show us how well these funds performed in 2022 thus far, a year marked by high uncertainty and volatility. In the report, we can see that by the end of November, Slovenian mutual funds assets under management (AUM) decreased by 4.2% YTD, 0.8% YoY, but also managed a somewhat decent recovery of 4.3% MoM, continuing the trend of positive MoM growth that started last month.

This increase can be attributed to several factors; first of all, even though the sentiment on the equity markets across the world is still largely negative, there are some signs that things aren’t as bad as they seem. The inflation rate in Slovenia increased to 10% YoY during the month, which is an increase of only 0.1 p.p. MoM. Furthermore, the price pressures in terms of oil&gas prices that are ever-present in Europe due to the continued war in Ukraine and the strong demand for these commodities during winter is still here. However, for the last couple of months, we have seen the stabilization of the prices, both due to the actions taken on the EU level and also due to a somewhat warmer-than-expected autumn. However, the primary pressure on the value of the assets will undoubtedly come from the ECB. As they have already hiked interest rates several times and are expected to continue in 2023, these pressures are expected to continue.

Coming back to the mutual funds themselves, the majority of investments remain in share holdings, at 70.4%, (or EUR 2.92bn) an increase of 0.9 p.p. MoM, and 0.4 p.p. YoY. Of this, EUR 2.87bn, or 98% is into foreign equity holdings, while EUR 57.2m, or the remaining 2%, are investments into domestic equity holdings. On a YoY basis, domestic equity securities decreased by 18.6%, while foreign equity securities increased by 0.2%. On an MoM basis, both domestic and foreign equity holdings recorded growth, of 5.1% and 5.6%, respectively.

Equity holdings of Slovenian UCITS funds (October 2007 – November 2022, EURm)

Source: ATVP, InterCapital Research

Next up, the 2^nd largest holding in the funds are bond holdings, at 15.5%, or EUR 644m, representing a decrease of 0.3 p.p. MoM, and 0.2 p.p. YoY. Following them, we have money market, deposits & cash, with 7.3% of the total, (or EUR 302m) a decrease of 0.8 p.p. MoM, but an increase of 1.1% YoY. Finally, we have investment funds, at 6.2% of the total (or EUR 256m), representing an increase of 0.1 p.p. MoM, but a decrease of 1 p.p. YoY.

Total assets of Slovenian mutual funds (June 2007 – November 2022, EURm)

Source: ATVP, InterCapital Research

Moving on, net contributions into the funds amounted to EUR 9.98m in November 2022, while during the last 12 months, they amounted to EUR 254.2m, a decrease of 45% YoY. Finally, the number of subscribers amounted to 508.2m, representing an increase of 3.2% YoY.

Net contributions into the Slovenian mutual funds (January 2016 – November 2022, EURm)

Source: ATVP, InterCapital Research

At the end of November 2022, BET increased by 8.6% MoM, while on a YTD basis, it decreased by 7.4%, ending November at 11,730.66 points.

The Bucharest Stock Exchange has published its monthly trading data for November 2022. In it, Stock Exchange highlighted that the capital market in Romania grew by 8.6% through the lens of the BET index. In the last trading session during November, the BET index ended at 11,730 points. The Bucharest Stock Exchange emphasized that mentioned 8.6% increase in the index represents the highest growth rate in almost two years. Also, historically speaking this month represents one of the best months in the BVB’s history. This month represents why investors should not time the market, but should always participate and own equity. Further, the BET-NG index (which tracks energy and related activities), increased by 6% this month, but decreased by 2.2% in the first eleven months of trading due to the very high base, as this index noted the biggest increase in price in the previously observed periods.

The higher levels of trading and volatility can currently be recorded on equity markets across the world. The current situation in Ukraine is by far affecting the commodity market (and by extension energy prices) the most, causing inflation. Considering that several of the largest companies listed on the BVB are energy production companies, this increased trading volume is not surprising resulting in 11.3% more transactions being carried out compared to the same period last year.

Moving on to the companies which constitute the largest Romanian Index, BET, the majority of companies increased during the month. Looking at the companies themselves, Transelectrica recorded the largest relative increase, growing by 19.5% MoM, followed by Banca Transilvania and BRD, which increased by 18.2% and 18.1% MoM, respectively. Further, Sphera Franchise noted an increase of 17.3% during November. On the other hand, One United Properties decreased by 6.5%, and MedLife by 4.7%. The YTD return shows a relatively different picture. 15 out of 20 BET constituents noted a YTD price decrease with Purcari at the bottom of the list with -42.1% YTD return, closely followed by Teraplast with a 41.8% decline. On the other hand, the best YTD performance among all BET constituents is reported by Bursa de Valori and Transgaz, nothing an increase of 35-7% and 20.8% in share price, respectively.

Performance of BET constituents in November 2022 (%)

Source: BVB, InterCapital Research

In total, the BET index ended the month at 11,730.66 points, which is an increase of 8.6% MoM, and a decline of 7.4% YTD.

Here you can find the dates for the upcoming events of the regional companies.

Due to the nature of these events, they are subject to change (might be postponed or canceled).