ISSN 1848-0942

Croatian Insurance 2011 Bureau

CROATIAN INSURANCE MARKET Publisher: Croatian Insurance Bureau Hrvatski ured za osiguranje Martićeva 73 10000 Zagreb Croatia

Telephone: +385 1 4696 600 Facsimile: +385 1 4696 660 Website: www.huo.hr Email: [email protected]

For the publisher: Hrvoje Pauković, Director

Prepared by: Mihaela Premor Andrijanić Tanja Stahuljak

Collaborators: Snježana Bertoncelj Slaven Dobrić Marijana Hržić Jasna Komljenović Lončar Jakša Krišto Vladimir Miletić Vanja Nadali Željko Jukić Zoran Zaninović

Translation: Ljiljana Petrina Banov Tanja Stahuljak

Graphic design and layout: ARCODE d.o.o. Zagreb

The information contained herein may be used in full or in part only with an appropriate indication of the source.

4 2011 CROATIAN INSURANCE MARKET

Impressum 5 Introduction

8 Basic and Macroeconomic Indicators

16 Insurance Market in the Republic of Croatia 18 ·Dynamics of the Insurance Market in the Period of 2003-2011 26 ·Review of the Insurance Market in 2011

38 Non-Life Insurance (Classes 1-18) 98 Life Insurance (Classes 19-25)

110 Insurance and Reinsurance Companies in 2011

188 The Croatian Insurance Bureau in 2011

6 2011 CROATIAN INSURANCE MARKET

Contents 7

Basic and Macroeconomic Indicators BASIC AND MACROECONOMIC INDICATORS

In the years of the global economic boom the GDP in Croatia Thanks to this improvement of the balance of payments the grew at rates higher than in the European Union. However, the growth of the foreign debt has been stopped. By the end of years of crisis identified specific problems in the Croatian 2005 the foreign debt surpassed €25.5 billion, by the end of economy. Because of the avoidance of structural reforms the 2006 it was €29 billion, by the end of 2007 €32.9 billion, by crisis in Croatia is harder and longer than in most other the end of 2008 €39.1 billion, by the end of 2009 €43 billion European countries. The growth of the GDP in the period from and by the end of 2010 €46.4 billion. Only in 2011 the foreign 2001 to 2007 increased from 3.8% to 5.5%, but slowed down debt has been diminished to €45.7 billion. to 2.4% in 2008. In 2009 the GDP was down by 5.8% and in 2010 by further 1.2%. At best the GDP stagnated in 2011. After the change in the so far strong tendency of growth of bank investments in 2009 when, for the first time after many The GDP growth from €32.8 billion in 2004 to €47.4 billion in years, bank credits to the state, commercial companies and 2008 was followed by a drop to €45.4 billion in 2009, and to population fell, in 2010 they showed growth. These credits €45.9 billion in 2010, the same value was reached in 2011. reached €24.3 billion in 2006 reflecting a growth of 22.8%, in Thus the GDP per capita surged up from €7,380 in 2004 to 2007 they reached €27.9 billion with a growth of 14.5%, and €10,682 in 2008, and fell to €10,245 in 2009, followed by a in 2008 they reached €31.1 billion with a growth of 11.6%. slight nominal rise to €10.379 in 2010. In 2011 the GDP per The year 2009 recorded a drop to €30.9 billion, by 0.7% and capita equalled to €10,426. Industrial production, after a in 2010 they rose considerably to €32.8 billion by 6.1% with growth of 1.6% in 2008 dropped severely in 2009 by 9.3% an increase of bank credits to commercial companies from and in 2010 by further 1.4% and in 2011 by 1.2%. One €14.1 to €15.3 billion and credits to population from €16.5 to encouraging aspect of the second important economic €17.2 billion. In 2011 credits increased by modest 5.6% to branch is that the number of tourist overnight stays increased €34.7 billion, of which €1.6 billons, that is almost the entire by 3.2% in 2010 following a 1.4% drop in 2009, and by 7% in growth, fell to economy, while credits to population grew by 2011. merely € 135millon. Through the past two years credits to commercial companies increased by over €2.7 billion which Because of recession the average annual inflation rate did not affect the growth of economic activities. Bank decreased from 6.1% in 2008 to 2.4% in 2009 and to merely deposits (without deposits of state funds) increased from 1.1% in 2010. In 2011 the consumer price growth rate €22.5 billion in 2006 to €27.6 billion in 2008, the year 2009 increased to 2.3%. The exchange rate of the Croatian kuna recorded a minimal growth to €27.8 billion, and in 2010 a against the euro gradually grew till 2008, while the average more significant growth to €29.1 billion and in 2011 further exchange rate in 2004 floated around 7.5 kuna per euro, in growth to €29.9 billion. And in 2010 foreign currency 2005 around 7.4 kuna per euro and in 2006 only 7.32 kuna, in deposits increased by €1.6 billion and kuna deposits 2007 it was 7.33 kuna and in 2008 merely 7.22 kuna per euro. decreased by € 538 million. In 2011 it was vice versa, kuna In 2009 the kuna weakened slightly and the average exchange deposits increased by €1.1 billion while foreign currency rate was 7.34 kuna, while in 2010 it grew slightly stronger to deposits decreased by €336 million. Foreign liabilities 7.29 kuna per euro. In 2011 the average exchange rate was representing the biggest source of debt accumulation for 7.43 kuna. The exchange rate of the Croatian kuna against the banks fluctuated from 2006 to 2008 between €9 to €10.2 US dollar is unstable mostly reflecting the fluctuation of the billion, while in 2009 they increased to €10.8 billion, in 2010 US dollar. During the year 1998 the exchange rate of the US to €11 billion and in 2011 to €12.1 billion. dollar against the Croatian kuna was less than 6 kuna per dollar, mid-2000 it exceeded 9 kuna per dollar, and in the Interest rates on deposits oscillated in the last few years, period between 2003 and 2005 it again approached 6 kuna showing till 2008 a growth tendency, followed by a severe per dollar. In 2006 the average exchange rate was 5.84 kuna drop by the end of 2009 which, apart from some exceptions, per dollar, in 2007 5.365 kuna per dollar, by the end of 2008 continued in 2010. However, some rates grew in 2011 while 5.16 kuna per dollar and 5.09 kuna per dollar by the end of others dropped. The average interests on kuna deposits not 2009. In 2010 the average exchange rate of the US dollar was 5.50 kuna, and 5.34 kuna in 2011. indexed to a foreign currency surged up from 1.83% in 2004 to 2.92% in 2008, fell to 2.22% in December 2009, and to Total commodity exports in 2010 came to €17.6 billion (in 1.61% in December 2010, while in December 2011 they rose 2009 to €16.1 billion) and the total commodity imports in to 1.88%; on term kuna deposits not indexed to a foreign 2010 amounted to €17.7 billion (in 2009 to €17.9 billion), and currency interests rose to 5.65% in 2008, and fell to 2.52% in by this increase of total commodity exports and the mild 2009 and to 1.93% in 2010, while in 2011 they surged up to decrease of total commodity imports the balance of 2.46%; interests on short-term deposits dropped from 5.60% payments improved considerably. Similar dynamics were to 2.49% in 2009, and to 1.85% in 2010, then rose in 2011 to recorded in 2011 since exports increased to €18.82 billion 2.33%; interests on long-term deposits fell from high 6.58% and imports to almost equal €18.77 billion. The deficit of the current balance of payments decreased to merely €446 to merely 2.76% in 2009, but by the end of 2010 they grew to million, while by end of 2010 it amounted to €582 billion 4.26% and fell to 2.98% in 2011. Interest rates on foreign against €2.4 billion in 2009 and almost €4.5 billion in 2008. exchange deposits showed a stable tendency of growth from 2.65% in 2004 to 3.97% in 2008, which stopped in 2009 at

10 3.98%, continued its drop to 3.09% in 2010 and to 2.90% in In 2011 the financial sector reached €71.7 billion, by 2011, while interest rates on long-term deposits fell from 3.2% more than in the previous year, and bank assets 5.51% in 2008 to 5.13% in 2009, however, increased in 2010 with €55.1 billion and building societies' assets with €1 to 5.36% and dropped to merely 3.84% in 2011. billion together make approx. 78% of the financial sector's assets. Interest rates on kuna loans not indexed to a foreign currency were had a falling tendency till 2005 i.e. 2006 showing again The total assets of the mandatory pension funds based on growth till 2009. In 2004 they declined from 11.44% to 9.07% permanent contributions after the year of crisis 2008 have in 2006, a year later they rose to 9.32% and to 10.71% in been rising again. By the end of 2008 to €3 billion or 4.8% of 2008, and in 2009 to 11.12%. However, in 2010 interests the financial sector's assets, by the end of 2009 to €3.9 billion dropped to 9.90%. By the end of 2011 interests stood at or 6% of these assets, by the end of 2010 to €4.9 billion or 9.36%. Similarly, interest rates on kuna loans indexed to a 7.1% and by the end of 2011 to €5.5 billion or 7%. By the end foreign currency fell from 6.89% in 2004 to 6.18% in 2005, of 2008 the assets of the voluntary pension funds amounted but rose to 7.73% in 2008 and to 8.28% in 2009, while in to €127.8 million, in 2009 to €153.3 million, by the end of 2010 they dropped to 7.78%. In 2011 interests kept falling to 2010 €236.5 million and in 2011 €269 million. The pension 7.15%. In the years before the differences between interests funds recovered gradually from losses in 2008. The assets of on kuna loans and deposits diminished. These differences the open-end investment funds suffered the greatest stroke by the financial crisis, a decline from €3.9 billion in 2008 to were to 10 percentage points, then stabilised at approx. 5 to 6 €1.3 billion in 2009 or merely 2.1% of the financial sector's percentage points. By the end of 2011 the difference assets. In 2009 a slight growth of open-end investment remained almost as previously. Interest rates on short-term assets to €1.6 billion was recorded or 2.5% assets of the loans for private entities which float between 7 and 9 even to financial sector and by the end of 2010 the open-end 11% (except for housing credits) reflected a significant investment assets accounted for €1.8 billion or 2.7% of the difference in respect to interest rates for trade companies financial sector's assets. End of 2011 open-end investment which are slightly over 9%, but by the end of 2010 and 2011 funds amounted to €1.6 billion i.e. 2.2% of the financial fell to about 7% to 8%. sector's assets. Large non-banking financial institutions are leasing companies of which assets stand at €4.7 billion in The number of employed people before the crisis grew from 2009 which in 2010 decreased to €3.9 billion and to €3.5 1,421 million in 2005 to 1,468 million in 2006, to 1,485 billion in 2011 for which reason its share dropped from 7.1% million in 2007 and to 1,532 million in 2008. In the year of to 5.7% i.e. 4.8% of the financial sector. crisis 2009, the number of employed people decreased to 1,499 million and by the end of 2010 to 1,432 million while in The year 2008 featured a slowdown in the insurance market 2011 the number was even lower at 1,411 million. The growth, unlike in earlier years when it was in double digits, number of unemployed people dropped from 309 thousand in because the premium income of €1.302 billion exceeded the 2007 premium by only 6.9%. The year 2009 witnessed a 2005 to 292 thousand in 2006, to 254 thousand in 2007 and premium drop which continued in 2010 and 2011. The gross to 240 thousand in 2008, but rose to 291,545 by the end of premium came down by 2.7% to €1.265 billion in 2009 and in 2009 and to 319,845 by the end of 2010. In 2011 the number 2010 some further 1.8% to €1.243 billion. The decline in of unemployed people was slightly less by 315,438 but at the 2011 was slower, by 1.1% and the premium dropped to beginning of the next year it started growing rapidly and the €1.230 billion. However, total assets of Croatian insurers prospects are not encouraging. continued its growth: in 2007 it amounted to €3 billion, in 2008 to €3.5 billion, in 2009 to €3.8 billion, in 2010 €4.1 The budget deficit of the consolidated central government in billion and in 2011 €4.3 billion (€4.4 billion together with 2006 reflected a deficit of approx. 2.6% of the GDP, which was reinsurance) which makes about 6.2% of the financial slightly less than the year before when it reached 3.5%, in sector. In 2010 it was 5.9%, in 2009 it was 5.7%, in 2008 2007 the deficit was 2% of the GDP and in 2008 1.8% of the 5.4% and in 2007 5.1%. The share of assets of the Croatian GDP, while in 2009 it was considerably higher by 4.3% of the insurers in the financial sector grows slowly but continuously. GDP and in 2010 even 5.3%, which was the same by the end The mathematical provision for life insurance which of 2011. By the end of 2008 the national debt totalled to represents the main long-term fund in the insurance industry €13.5 billion, or 29.3% of the GDP, amounted in 2011 to €1.7 billion, in 2010 to €1.6 billion, in in 2009 €15.8 billion or 35.3% of the GDP, in 2010 €18.6 2009 to €1.4 billion and in 2008 to €1.3 billion. The growth of billion or 41.2% of the GDP and in 2011 it totalled to €20.7 insurance industry assets which is a guarantee that insurance billion or 44.9% of the GDP. This debt also represents a obligations shall be met, is a good sign of the stability of the burden for a possible economic development of the Republic whole insurance system. However, the decrease of premiums of Croatia. in the last few years (whereas in most EU member states premiums increase) indicates problems in the real sector in Through the past few years the financial sector in Croatia has the Croatian economy. Deindustrialization and decrease of been developing considerably faster than the real sector, and construction industry result in a stagnation of property grew, though slower than before, through the years of crisis. insurance premiums and smaller personal incomes affect a In 2008 the growth nominally was 2.2% against 2.4% of the smaller demand for private insurance. real growth of the GDP and in 2009 the financial sector The financial results in 2011 were significantly better because increased by further 4.3% to €65.9 billion and in 2010 the of reduction of losses which is very positive, without a growth financial sector reached €68.6 billion, by 4.1% more than in of the GDP no faster development of the underwriting the year before. business can be expected.

Basic and Macroeconomic Indicators 11 1 Basic Indicators

12 Official name: Republika Hrvatska Land area: 56,542 km2 Territorial sea area: 31,067 km2 Total area: 87,661 km2 Population (2001): 4,437,460 (female 51.84%, male 48.16%) Administrative division: 21 Counties (incl. the City of Zagreb)

2 Selected Macroeconomic Indicators

2003 2004 2005 2006 2007 2008 2009 2010 2011 87,661 87,661 87,661 87,661 87,661 87,661 87,661 87,661 87,661 total area, sq km 4,442 4,439 4,442 4,440 4,436 4,435 4,429 4,424 4,402 population, mid-year estimation, in 000 1,722,313 1,719,509 1,729,312 1,759,492 1,781,357 1,791,546 1,768,928 1,734,879 1,716,571 active population

228,932 247,428 266,652 291,044 318,308 345,015 335,189 334,563 341,206 GDP, current prices, HRK million 51,538 55,740 60,030 65,550 71,756 77,794 75,681 75,625 77,512 GDP, per capita, HRK 30,265 33,009 36,034 39,745 43,390 47,765 45,669 45,917 45,897 GDP, current prices, EUR million 6,813 7,436 8,112 8,951 9,781 10,770 10,311 10,379 10,426 GDP per capita, EUR 34,146 41,025 44,816 49,843 59,319 69,920 63,478 60,829 63,854 GDP, current prices, USD million 7,687 9,242 10,089 11,226 13,372 15,766 14,332 13,750 14,506 GDP, per capita, USD 5 4.2 4.2 4.7 5.5 2.4 -5.8 -1.2 0.0 GDP, real growth rate, %

7.564248 7.495680 7.400047 7.322849 7.336019 7.223178 7.339554 7.286230 7.434204 midpoint exchange rate HRK/EUR 6.704449 6.031216 5.949959 5.839170 5.365993 4.934417 5.280370 5.500015 5.343508 midpoint exchange rate HRK/USD

1.8 2.1 3.3 3.2 2.9 6.1 2.4 1.1 2.3 consumer prices - inflation, annual growth rate, %

3,940 4,173 4,376 4,603 4,841 5,178 5,311 5,343 5,441 net earnings in HRK number of employed persons, 1,392,510 1,409,634 1,420,574 1,467,876 1,516,909 1,554,805 1,498,784 1,432,454 1,411,238 annual average 19.2 18.0 17.9 16.6 14.8 13.2 14.9 17.4 17.9 unemployment rate, %

1Source: Croatian Chamber of Economy, 2011 2Source: Croatian Chamber of Economy, 2011

Basic Indicators 13 Financial Situation in 2011 3

Financial institutions in the Croatian financial market 32 commercial banks 1 savings bank Croatian Bank for Reconstruction and Development 5 housing savings banks 25 insurance companies 2 reinsurance companies 29 insurance intermediation companies more than 300 insurance representation companies and crafts 34 investment fund management companies (altogether - 131 open-end investment funds, 8 closed-end investment funds, the Fund of Croatian War Veterans of Homeland War and their Family Members, and the Pension Fund) The Zagreb Stock Exchange, d.d. The Central Depositary and Clearing Company Inc, The Zagreb Money and Short-Term Securities Market, d.d. 19 investment companies (brokerage companies) and 21 banks licensed to transact securities business 4 mandatory pension fund management companies 4 voluntary pension fund management companies (6 open-end and 12 closed-end voluntary pension funds have been established) 1 pension insurance company 26 leasing companies

The supervisory institutions in the financial sector: www.hnb.hr / Croatian National Bank www.hanfa.hr / Croatian Financial Services Supervisory Agency www.dab.hr / State Agency for Deposit Insurance and Bank Rehabilitation

Share of Financial Intermediaries in the Total Assets of Financial Intermediaries by the End of 2011:4

Assets in 2011

Financial Intermediary in mil. EUR % Commercial banks 54,802 76.90 Mandatory pension funds 5,524 7.75 Insurance companies 4,304 6.04 Leasing companies 3,482 4.89 Open-end investment funds 1,605 2.25 Housing savings banks 1,054 1.48 Voluntary pension funds 265 0.37 Closed-end investment funds 225 0.32

TOTAL 71,260 100.00

3Source: Croatian Chamber of Economy, 2012 4Source: Croatian National Bank, Croatian Financial Services Supervisory Agency

14 76.90 % Commercial banks

7.75 % Mandatory pension funds

6.04 % Insurance companies

4.89 % Leasing companies

2.25 % Open-end investment funds

1.48 % Housing savings banks

0.37 % Voluntary pension funds

0.32 % Closed-end investment funds

15

INSURANCE MARKET IN THE REPUBLIC OF CROATIA Insurance Market in the Republic of Croatia Note: The amount of Gross premium written in non-life insurance comprises the premium of co-insurance: Dynamics of the -in 2011 to a total of €1,173,697 -in 2010 to a total of €1,358,308 Insurance Market -in 2009 to a total of €789,743

Claims paid, in the Period Gross gross 5 premiums amounts 2003 – 2011 written in in TABLE YearEUR 000 IndexEUR 000 Index 2003 816,098 108.8 398,799 108.1 2004 891,402 109.2 431,916 108.3 02 2005 988,683 110.9 464,742 107.6 In 2011 the gross premium recorded Total - Gross premium 2006 1,100,341 111.3 528,787 113.8 written and claims negative growth rates again. The gross 2007 1,219,355 110.8 574,552 108.7 paid (gross amounts) premium in 2011 against the 2010 2008 1,302,910 106.9 617,667 107.5 declined by -1.1% and by the end of 2009 1,265,951 97.2 643,088 104.1 2011 it amounted to €1.230 billion. By 2010 1,243,649 98.2 591,290 91.9 this the negative growth rate of the 2011 1,230,158 98.9 614,426 103.9 gross premium continued and by the end of 2010 it stood at -1.8%. During the period between 2005 and 2007 the rates achieved double-digit growth, in 2008 the growth rates accounted for Claims 6.9%, in 2009 the drop of gross Gross paid, premium started and amounted to - premiums gross written in amounts in 2.8%. In 2011 the non-life premium TABLE YearEUR 000 IndexEUR 000 Index written came to €903 million down by - 2003 634,508 106.6 375,471 107.4 1.1% compared to 2010 when it was 2004 680,294 107.2 396,976 105.7 €913 million. Life insurance premiums 2005 733,677 107.8 422,353 106.4 also fell and came to the 2011 level of - Non-Life - Gross 2006 809,111 110.3 472,150 111.8 premium written 1.1% and stood by the end of the year at 2007 885,393 109.4 574,552 103.6 €327 million. Life insurance share of and claims paid (gross amounts) 2008 960,470 108.5 525,849 107.6 gross premium was 26.6% in 2011 (the 2009 931,191 97.0 517,822 98.5 same as in 2010, higher than in 2009 at 2010 913,058 98.1 451,603 87.2 26.4%, while in 2007 being at highest 2011 903,120 98.9 439,738 97.4 27.4%). Total claims paid in 2011 amounting to €614 million recorded an increase of 3.9% against 2010.

In the first four months of 2012 the Claims gross premium still decreased by -0.6% Gross paid, following the non-life premium premiums gross written in amounts in decrease of -1.5% while life insurance TABLE YearEUR 000 IndexEUR 000 Index premiums rose by 2.2%. The slowdown 2003 181,591 117.1 23,328 120.6 of the economic growth, the collapse in 2004 211,108 116.3 34,940 149.8 financial markets, the rise in 2005 255,006 120.8 42,389 121.3 unemployment and the decrease of real Life - Gross 2006 291,230 114.2 56,637 133.6 premium written income still endanger the present 2007 333,962 114.7 85,637 151.2 and claims paid growth pace of the insurance market. (gross amounts) 2008 342,441 102.5 91,818 107.2 2009 334,760 97.8 125,266 136.4 2010 330,591 98.8 139,687 111.5 2011 327,038 98.9 174,688 125.1 5 Data for the period 2003-2006 – source Croatian Financial Services Supervisory Agency; Data for the period 2007-2011 delivered by insurance companies through the web application HUO_Statistika

18 100 10 20 30 40 50 60 70 80 90 0 %

GRAPH 2003 77.75% 22.25% 2004 76.32% 23.68% 2005 74.21% 25.79% 2006 73.53% 26.47% Share of non-life and life insurance in 2007 72.61% 27.39% the GWP 2008 73.72% 26.28% for the period 2009 73.56% 26.44% 2003-2011 2010 73.42% 26.58% 2011 73.41% 26.59%

Non-Life Life 100 103 106 109 112 115 118 121 97 %

GRAPH 2003 106.6 108.8 117.1

2004 107.2 109.2 116.3

2005 107.8 110.9 114.2 120.8 2006 110.3 111.3 Premium growth index 2007 109.4 110.8 114.7 for the period 2008 97.0 102.5 108.5 97.2 2003-2011 97.8 106.9 2009 98.1 98.2 2010 98.8 98.9 2011 98.9 98.9

Premium growth Premium growth Growth index index - Non Life index - Life of GWP 100 110 130 140 150 160 120 90 80 %

GRAPH 2003 107.4 108.1 120.6

2004 105.7 108.3 149.8

106.4 107.6 2005 121.3 2006 111.8 113.8 133.6 Growth index of claims paid 2007 103.6 108.7 151.2 for the period 107.2 107.6 2008 107.5 2003-2011

2009 98.5 104.1 136.4

2010 87.2 91.9 111.5 125.1 2011 97.4 103.9

Growth index of Growth index of Growth index of claims paid - Non Life claims paid Life total claims paid

Dynamics of the Insurance Market 19 in the Period from 2003-2011 Insurance Market in the Republic of Croatia

Total GWP Share Non-Life Share Life Share in in GDP GWP in in GDP GWP in in GDP TABLE Year EUR 000 Index (%) EUR 000 Index (%)EUR 000 Index (%) 2003 816,098 108.8 2.65% 634,508 106.6 2.06% 181,591 117.1 0.59% 2004 891,402 109.2 2.68% 680,294 107.2 2.04% 211,108 116.3 0.63% 2005 988,683 110.9 2.76% 733,677 107.8 2.05% 255,006 120.8 0.71% Share of 2006 1,100,341 111.3 2.81% 809,111 110.3 2.07% 291,230 114.2 0.74% gross premium 2007 1,219,355 110.8 2.85% 885,393 109.4 2.07% 333,962 114.7 0.78% written in GDP in % 2008 1,302,910 106.9 2.81% 960,470 108.5 2.07% 342,441 102.5 0.74% 2009 1,265,951 97.2 2.81% 931,191 97.0 2.07% 334,760 97.8 0.74% 2010 1,243,649 98.2 2.76% 913,058 98.1 2.03% 330,591 98.8 0.73% 2011 1,230,158 98.9 2.68% 903,120 98.9 1.97% 327,038 98.9 0.71%

Life Premium Non-Life insurance Total income Non-Life premium Life premium GWP per capita GWP per capita GWP per capita TABLE Year in EUR 000 in EUR in EUR 000 in EUR in EUR 000 in EUR 2003 816,098 184 634,508 143 181,591 41 2004 891,402 201 680,294 153 211,108 48 2005 988,683 223 733,677 165 255,006 57 Premium 2006 1,100,341 248 809,111 182 291,230 66 6 per capita 2007 1,219,355 275 885,393 200 333,962 75 for the period 2003-2011 2008 1,302,910 294 960,470 217 342,441 77 (in EUR) 2009 1,265,951 286 931,191 210 334,760 76 2010 1,243,649 281 913,058 206 330,591 75 2011 1,230,158 279 903,120 205 327,038 74

6 Based on a mid-year estimate of the population (Croatian Chamber of Commerce)

Number of employees Total GWP in insurance Premium in companies per employee 7 TABLE Year EUR 000 on 31st Dec, in EUR 000 2003 816,098 6,059 135 2004 891,402 6,485 137 2005 988,683 6,970 142 Premium 2006 1,100,341 7,984 138 per employee 2007 1,219,355 9,360 130 for the period 2003-2011 2008 1,302,910 10,544 124 (in EUR 000) 2009 1,265,951 11,184 113 2010 1,243,649 11,145 112 2011 1,230,158 11,288 109

7 Data on employees in insurance companies have been gathered directly from insurance companies and do not include employees in reinsurance companies and the Croatian Nuclear Pool, and have as such been published in the booklets 'Insurance and Reinsurance Companies in the Republic of Croatia’

20 Insurance Market in the Republic of Croatia

Gross premium share in GDP in 2011 lay by 2.68% reflecting the continuous falling trend since 2007 when it topped 2.85%. The non-life premium share in GDP in 0.00 0.50 1.00 1.50 2.50 4.00 2.00 3.00 3.50 2011 lay by 1.97% and the life premium % Total GWP Share Non-Life Share Life Share share was 0.71%. Compared to 2010 the in in GDP GWP in in GDP GWP in in GDP quoted data indicate a minor significance TABLE Year EUR 000 Index (%) EUR 000 Index (%) EUR 000 Index (%) GRAPH of insurance premiums in relation to the 2003 816,098 108.8 2.65% 634,508 106.6 2.06% 181,591 117.1 0.59% 2003 0.59 2.06 2.65 GDP. These shares are much higher compared to neighbouring Eastern 2004 891,402 109.2 2.68% 680,294 107.2 2.04% 211,108 116.3 0.63% 2004 0.63 2.04 2.68 countries, on the other hand compared to 2005 988,683 110.9 2.76% 733,677 107.8 2.05% 255,006 120.8 0.71% 2005 0.71 2.05 2.76 the developed EU countries the Republic of Share of 2006 1,100,341 111.3 2.81% 809,111 110.3 2.07% 291,230 114.2 0.74% 2006 0.74 2.07 2.81 Share of Croatia is standing behind. gross premium gross premium 2007 1,219,355 110.8 2.85% 885,393 109.4 2.07% 333,962 114.7 0.78% 0.78 2.07 2.85 written in 2007 written Gross premium per capita was in 2011 GDP in % 2008 1,302,910 106.9 2.81% 960,470 108.5 2.07% 342,441 102.5 0.74% 2008 0.74 2.07 2.81 In GDP in % €279, non-life €205 and life merely €74. Along with the fall of insurance premium 2009 1,265,951 97.2 2.81% 931,191 97.0 2.07% 334,760 97.8 0.74% 2009 0.74 2.07 2.81 in 2011 the premium per capita also 2010 1,243,649 98.2 2.76% 913,058 98.1 2.03% 330,591 98.8 0.73% 2010 0.73 2.03 2.76 recorded a fall compared to 2010. 2011 1,230,158 98.9 2.68% 903,120 98.9 1.97% 327,038 98.9 0.71% 0.71 1.97 2.68 2011 According to these indicators the Republic of Croatia is still far below an Life GWP Non-Life GWP Total GWP average of developed countries, which on the other hand indicates a potential for further growth. 1,000 1,500 2,000 2,500 3 3 4,000 ,000 ,500 Life 500 Premium per employee in 2011 0 Premium Non-Life insurance € accounted for €109 thousand, and the Total income Non-Life premium Life premium number of persons employed at GWP per capita GWP per capita GWP per capita insurance companies was 11,288. TABLE Year in EUR 000 in EUR in EUR 000 in EUR in EUR 000 in EUR GRAPH

2003 816,098 184 634,508 143 181,591 41 2003 41 143 184 Premiums per employee grew in the period from 2003 to 2005; in 2006 they 2004 891,402 201 680,294 153 211,108 48 2004 48 153 201 constantly dropped due to the rapid 2005 988,683 223 733,677 165 255,006 57 2005 57 165 223 increase of employees at insurance Premium 2006 1,100,341 248 809,111 182 291,230 66 2006 66 182 248 Premium companies – more than 1,000 in 2006, per capita6 per capita more than 1,300 in 2007, in 2008 by 2007 1,219,355 275 885,393 200 333,962 75 2007 75 200 275 for the period for the period 1,184 employees and in 2009 by 640 2003-2011 2008 1,302,910 294 960,470 217 342,441 77 2008 77 217 294 2003-2011 (in EUR) employees. In 2010 this trend was (in EUR) 2009 1,265,951 286 931,191 210 334,760 76 2009 76 210 286 stopped and the number of employees

2010 1,243,649 281 913,058 206 330,591 75 2010 75 206 281 was reduced to 29, while in 2011 the number of employees continued its 2011 1,230,158 279 903,120 205 327,038 74 2011 74 205 279 growth by 143. The increase and maintenance of this 6 Life GWP Non-Life GWP Total GWP Based on a mid-year estimate of the population (Croatian Chamber of Commerce) per capita per capita per capita number of employees partially caused by the regulations of the new Insurance Act regarding insurance intermediaries, can

1,000 1,050 1,100 1,150 1,200 mean that the new sales channels, utilized Number of 800 850 900 950 employees 000 € more and more by Croatian insurers Total GWP in insurance Premium particularly bancassurance and web, may in companies per employee 7 not necessarily result in a reduction of the Year EUR 000 on 31st Dec, in EUR 000 TABLE GRAPH number of employees in insurance. 2003 816,098 6,059 135 2003 135 Beside the new insurance distribution 2004 891,402 6,485 137 2004 137 channels the salary staff, i.e. the

2005 988,683 6,970 142 2005 142 company's employed salesmen will most likely retain their position especially for Premium 2006 1,100,341 7,984 138 2006 138 Premium per employee per employee long-term personal insurance: health, 2007 1,219,355 9,360 130 2007 130 for the period for the period accident and life insurance, which will 2003-2011 2008 1,302,910 10,544 124 2008 124 2003-2011 progressively play a significant role in supplying Croatian third age citizens with (in EUR 000) 2009 1,265,951 11,184 113 2009 113 (in EUR 000) assurance. The question is, how will the 2010 1,243,649 11,145 112 2010 112 increase of the number of employees 2011 1,230,158 11,288 109 2011 109 affect the business costs which are relatively high with the Croatian insurance companies and do premium growth and 7 Data on employees in insurance companies have been gathered directly from insurance companies and Premium per employee in EUR 000 do not include employees in reinsurance companies and the Croatian Nuclear Pool, and have as such been drop follow the employment policy. published in the booklets 'Insurance and Reinsurance Companies in the Republic of Croatia’

20 Dynamics of the Insurance Market 21 in the Period from 2003-2011 Insurance Market in the Republic of Croatia

Non-Life Life Total Claims paid, Claims paid, Claims paid, gross gross gross amounts amounts amounts TABLE Year in EUR 000 Index in EUR 000 Indexin EUR 000 Index 2003 398,799 108.1 375,471 107.4 23,328 120.6 2004 431,916 108.3 396,976 105.7 34,940 149.8 2005 464,742 107.6 422,353 106.4 42,389 121.3 Claims paid, 2006 528,787 113.8 472,150 111.8 56,637 133.6 gross amounts 2007 574,552 108.7 488,915 103.6 85,637 151.2 (in EUR 000) 2008 617,667 107.5 525,849 107.6 91,818 107.2 2009 643,088 104.1 517,822 98.5 125,266 136.4 2010 591,290 91.9 451,603 87.2 139,687 111.5 2011 614,426 103.9 439,738 97.4 174,688 125.1

GRAPH 1,000,000 700,000 900,000 300,000 500,000 600,000 200,000 800,000 400,000 100,000

0 000 €

Claims paid, gross amounts (in EUR 000) 2003

Total claims paid in 2011 amounted to €614.4 million and 2004 against 2010 with a growth rate of 3.9%. This growth rate was conditioned by a high growth rate 2005 of claims paid in life insurance by 25.1%, while the growth rate of claims paid in non-life insurance 2006 recorded a drop by -2.6%. In life insurance the growth rates of claims paid were higher than the 2007 growth rates of claims paid in non-life insurance through all the years except 2008. This growth 2008 can be attributed to the expiry of the ten-year insurance that had 2009 been purchased after 1995, when the Croatian currency stabilized

and a faster growth of life 2010 premiums began. In 2009 the growth rate of claims paid was 36.4%, in 2010 it was 11.5% and 2011 in 2011 25.1% which resulted

from the influence of the financial Non-Life Claims paid, gross amounts in EUR 000 and economic crisis. Life Claims paid, gross amounts in EUR 000

Total Claims paid, gross amounts in EUR 000

22 Claims Earned incurred, premiums, gross gross amounts amounts 8 9 Year in EUR 000 Index in EUR 000 Index TABLE 2003 605,915 105.4 394,270 102.5 Claims incurred in non-life insurance 2004 655,687 108.2 435,476 110.5 in 2011 recorded a drop of -7.5%, thus 2005 704,406 107.4 480,365 110.3 the ratio of claims incurred to earned 2006 781,792 111.0 502,967 104.7 Non-Life - Claims incurred and earned 2007 833,025 106.6 567,605 112.9 premiums in 2011 decreased and stood premiums for 2008 923,755 110.9 588,685 103.7 the period at 48.82% compared to 2010 and the 2009 942,718 102.1 549,525 93.3 2003-2011 ratio of 52.72%. (in EUR 000) 2010 924,188 98.0 487,183 88.7 2011 904,637 97.9 450,645 92.5

8Earned premiums, gross amounts were calculated by the formula: Gross premium written + unearned premiums, gross amount on 1st Jan. – unearned premiums, gross amount on 31st Dec.

9Total claims incurred in non-life insurance include claims paid and changes of claims provisions in gross amounts.

GRAPH 1,00,000 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000

0 000 €

Non-Life - Claims incurred and earned premiums for 2003 the period 2003-2011 (in EUR 000) 2004

2005

2006

2007

2008

2009

2010

2011

50.00 55.00 60.00 65.00 70.00 75.00 80.00 85.00 90.00 95.00 100.00 %

Earned premiums, gross amounts in EUR 000

Claims incurred, gross amounts in EUR 000

Ratio

Dynamics of the Insurance Market 23 in the Period from 2003-2011 Insurance Market in the Republic of Croatia

Earned premiums, Claims incurred, gross amounts gross amounts 10 11 TABLE Year in EUR 000 Index in EUR 000 Index 2003 181.411 117,4 24.900 120,2 2004 210.888 116,2 36.945 148,4 2005 254.686 120,8 45.777 123,9 Claims incurred 2006 290.524 114,1 57.364 125,3 and earned 2007 333.983 115,0 89.178 155,5 premiums for the period 2008 342.268 102,5 92.690 103,9 2003-2011 2009 334.850 97,8 125.682 135,6 (in EUR 000) 2010 330.266 98,6 140.681 111,9 2011 327.190 99,1 173.764 123,5

10Earned premiums, gross amounts were calculated by the formula: Gross premium written + unearned premiums, gross amount on 1st Jan. – unearned premiums, gross amount on 31st Dec.

11Total claims incurred in life insurance include claims paid and changes of claims provisions in gross amounts.

GRAPH 350.000 150.000 250.000 100.000 300.000 200.000 50.000

0 000 €

Claims incurred and earned premiums for the period 2003 2003-2011 (in EUR 000) 2004

2005

In life insurance the amounts 2006 for claims incurred posted a 2007 growth of 23.5% in 2011 which

indicates the influence of the 2008 financial and economic crisis on the changes in life insurance 2009 policies, which are not in favour 2010 of insurance companies in circumstances of a decreased 2011 premium income. 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 %

Earned premiums, gross amounts in EUR 000

Claims incurred, gross amounts in EUR 000

Ratio

24 Loss Expense Combined Year ratio in % ratio in % ratio in % TABLE 2003 69.6 34.1 103.7 Loss ratio, expense ratio and combined 2004 71.0 36.1 107.1 ratio represent an useful indicator in the 2005 70.5 37.8 108.3 2006 70.8 39.4 110.3 Insurance analysis of the success of insurance industry 2007 73.9 40.2 114.1 12 company's underlying operations. basics 2008 68.4 39.4 107.8 2009 69.8 44.5 114.3 Loss ratio is considered the ratio of the 2010 67.6 44.3 111.9 2011 64.6 44.8 109.4 sum of claims paid, adjustment in the claims provision and change of other technical provisions to earned premiums (multiplied with 100); in 2011 it stood at 64.6%.

Expense ratio is the ratio of the sum of operating expenses (acquisition costs and administrative expenses) and other technical charges to gross premium written deducted for the premium share ceded to reinsurance (multiplied with 100); in 2011 it stood at very high 44.8%. The ordinary range of this indicator in insurance business is 20%- 30%.

Combined ratio is the sum of the loss ratio and the expense ratio. It gives an indication of the results of an insurer's underwriting operations, does not, however, take into account the allocated investment return; in 2011 it stood at very high 109.4%.

12Source: Croatian Financial Services Supervisory Agency

Dynamics of the Insurance Market 25 in the Period from 2003-2011 Insurance Market in the Republic of Croatia Review of the Insurance Market in 201113

02

GRAPH

Structure of gross premium 32.10 % Motor Vehicle Liability in 2011

26.59 % All Life

8.72 % Motor Vehicle (Casco)

8.27 % Other Damage to Property

6.19 % Fire and Natural Disasters

5.66 % Accident

12.48 % Others

13Data for the period 2003-2006 – source Croatian Financial Services Supervisory Agency; Data for the period 2007-2011 delivered by insurance companies through the web application HUO_Statistika

26 In 2011 the Croatian insurance market recorded a continuous of €34.8 million, and in 2009 it recorded a premium drop of - decline of gross premium that had started in 2009, under the 3.6% which generated €36.5 million. influence of the financial and economic crisis on the insurance The motor vehicle (casco) premium share in gross premium in market, which in earlier periods used to record growth rates the year 2011 was 8.72%, while in the year before it was in double digits. Insurance companies' underwriting 9.61%. The motor vehicle (casco) premium recorded a drop operations show negative combined ratio (over 100%) by -10.2% compared to 2010, representing a high rate of through a longer period, which is mostly conditioned by the decline which in 2010 compared to 2009 reached high - growing and high expense ratio, while loss ratio is satisfactory 11.5%. In the last few years, before 2009, the motor vehicle at a level below 70%. (casco) premium share was stable at nearly 12%, while ten In the structure of gross premium in 2011 the motor liability years ago the share was relatively lower, around 8%. insurance share accounted for significant 32.10%, followed by Gross premium in property insurance in 2011 amounted to life insurance 26.59%, motor vehicle (casco) 8.72% of gross €177.8 million, of which premiums in all other property premium, other damage to property 8.27%, fire and other insurance amounted to €101.7 million, and premiums in fire perils insurance 6.19%, accident insurance 5.66%, while other and other perils insurance to €76.1 million. insurance classes were 12.48%. In 2011 the gross premium in property insurance recorded a Motor liability insurance premiums in 2011 amounted to drop by -1.2% compared to 2010, in all other property €394.8 million compared to 2010 it increased by 1.6%. insurance the decrease was by -1.0% and in fire and other Because of the decrease of the gross premium its share in the perils insurance by -1.3%. structure of gross premium increased from 31.26% in 2010 to 32.10% in 2011. In 2009 the motor liability premium remained Gross premium in property insurance in 2009 amounted to the same as in 2008, and in 2008 it rose by 7.4% in relation to €182.8 million at the most, and till that year it recorded a 2007. In this period the decline of the motor liability premium constant growth since 2004 when the premium amounted share in gross premium was stopped, which lasted until 2008. €137.3 million. In 2001 this share was 32.7% and 36.1% in 1998. This trend of decline of the premium share in motor liability over the past The number of policies issued in fire insurance in 2011 was years was considered an improvement in the premium 501.2 thousand and recorded a decrease of 0.5% compared structure in the Croatian insurance market. In 2011 the to 2010. In all other property insurance the number of policies number of policies issued in motor liability insurance was issued in 2011 was 579.7 thousand with a rise of 2.1% 1,994 million, compared to 2010 when it rose by 0.5%. compared to 2010.

By the end of 2011 there were like in 2010 about 754 thousand The strongest premium growth in 2011 was registered with life insurance policies generating €327 million in premiums (in suretyship insurance by 71.8% with €1.1 million representing 2010 €330.5 million), and 540 thousand supplementary life a weak share in gross premium of merely 0.09%. Annuity insurance (accident) policies (in 2010 there were 521 insurance grew at a rate of 26.4% with a share in gross thousand) generating €21 million (€21.8 million in 2010) in premium of insignificant 0.10%, legal protection insurance premiums. Annuity insurance, which should supply third-age grew at a rate of 14.9% with a share of 0.03%, aircraft liability insureds with additional income, as pensioners can expect insurance by 12.2% with a share of 0.03% and credit insurance smaller pensions, was low. In 2011 there were only 3,076, by 11.4% with a share in gross premium of 1.42%. which is less compared to 3,312 in 2010 of these classes of Growth rates have been recorded with other liability insurance generating a premium of merely €1.2 million (€962 insurance by 8.7%, diverse financial loss insurance by 8.5%, thousand in 2010) while in 2005 there were 3,381 policies travel insurance by 3.5% and the already mentioned motor issued with a premium income of €1.4 million. The number of vehicle liability insurance by 1.6%. policies issued in life insurance linked with units of investment funds remained the same as in 2009 and 2010, 55 thousand The premiums in ships (hull) insurance in 2011 decreased by - and the premium income fell by 2% compared to 2010 and 10.2% and generated €27.6 million, and made a share of 2011 which amounted to €22 million. 2.24% in gross premium. Other insurance classes which recorded a premium fall in 2011 compared to 2010 holding a In 2011 the accident insurance premium share in the structure share in gross premium lower than 1% are: goods-in-transit of gross premium declined again to 5.66% from 5.75% in 2010, insurance with €8.4 million in 2011 and compared to 2010 and in its absolute amount it was lower by 2.6% and with a rate of fall by -7.2%, liability insurance arising out of use generated €69.6 million by the end of 2011. The accident of vessels with €4.9 million and a drop by -14.5%, aircraft hull insurance share from 2003 and 7.4% recorded a gradual fall. insurance with €345 thousand and a drop by -35.5% and Health insurance premiums had an outstanding trend of railway locomotives and rolling stock insurance with a surging up till 2009. In 2011 health insurance continued its fall premium in 2011 of €716 thousand and compared to 2010 a of -1.4%, the gross premium amounted to €34.3 million. In drop by -12.6%. 2010 the fall of this insurance class was -4.6% with a premium

Review of the Insurance Market in 2011 27 Insurance Market in the Republic of Croatia

TABLE

Gross premium written by groups of classes (in EUR)

Gross premium Gross premium written in EUR Share Written in EUR Share Index Code GROUP OF CLASSES 2010 % 2011 % 11/10 1 ACCIDENT 71,478,383 5.75 69,598,624 5.66 97.4 2 HEALTH 34,798,976 2.80 34,320,685 2.79 98.6 3 MOTOR VEHICLE CASCO 119,533,880 9.61 107,321,432 8.72 89.8 4 RAILWAY ROLLING STOCK - CASCO 819,723 0.07 716,317 0.06 87.4 5 AIRCRAFT - HULL 3,153,058 0.25 2,035,135 0.17 64.5 6 SHIPS - HULL 30,743,179 2.47 27,594,360 2.24 89.8 7 GOODS-IN-TRANSIT 9,007,621 0.72 8,355,931 0.68 92.8 8 FIRE AND NATURAL DISASTERS 77,168,280 6.20 76,132,085 6.19 98.7 9 OTHER DAMAGE TO PROPERTY 102,733,316 8.26 101,681,697 8.27 99.0 10 MOTOR VEHICLE LIABILITY 388,752,109 31.26 394,823,470 32.10 101.6 11 AIRCRAFT LIABILITY 307,582 0.02 344,993 0.03 112.2 12 MARINE LIABILITY 5,759,448 0.46 4,926,178 0.40 85.5 13 OTHER LIABILITY INSURANCE 35,821,331 2.88 38,921,145 3.16 108.7 14 CREDIT 15,707,468 1.26 17,498,102 1.42 111.4 15 SURETYSHIP 616,100 0.05 1,058,434 0.09 171.8 16 FINANCIAL LOSS 10,251,674 0.82 11,122,857 0.90 108.5 17 LEGAL PROTECTION 340,700 0.03 391,582 0.03 114.9 18 TRAVEL INSURANCE 6,065,187 0.49 6,276,862 0.51 103.5 19 LIFE 284,084,097 22.84 281,522,417 22.89 99.1 20 ANNUITY INSURANCE 962,389 0.08 1,216,929 0.10 126.4 21 SUPPLEMENTAL LIFE INSURANCE 21,799,242 1.75 21,047,191 1.71 96.6 22 MARRIAGE AND BIRTH ASSURANCE 1,243,479 0.10 1,206,458 0.10 97.0 23 INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS – UNIT LINKED 22,502,088 1.81 22,045,095 1.79 98.0 24 TONTINE - 0.00 - 0.00 0.0 25 INSURANCE WITH PAID-UP SUM ASSURED - 0.00 - 0.00 0.0

TOTAL (NON-LIFE, CLASSES 01 - 18) 913,058,014 73.42 903,119,890 73.41 98.9 TOTAL (LIFE, CLASSES 19 - 25) 330,591,294 26.58 327,038,091 26.59 98.9 T O T A L (CLASSES 01 - 25) 1,243,649,308 100.00 1,230,157,980 100.00 98.9

28 TABLE

Insurance premium structure in 2011 (in EUR)

Pure Prevention Operation Gross premium premium share expenses share written GROUP OF CLASSES Code 47,746,446 300,591 21,551,587 69,598,624 ACCIDENT 1 19,750,251 7,867,905 6,702,530 34,320,685 HEALTH 2 84,713,291 313,409 22,294,732 107,321,432 MOTOR VEHICLE CASCO 3 560,219 - 156,098 716,317 RAILWAY ROLLING STOCK - CASCO 4 1,921,194 17 113,924 2,035,135 AIRCRAFT - HULL 5 22,652,087 10,009 4,932,265 27,594,360 SHIPS - HULL 6 5,724,832 4,947 2,626,151 8,355,931 GOODS-IN-TRANSIT 7 56,734,155 1,032,408 18,365,522 76,132,085 FIRE AND NATURAL DISASTERS 8 80,258,793 724,086 20,698,818 101,681,697 OTHER DAMAGE TO PROPERTY 9 348,662,591 3,726,425 42,434,455 394,823,470 MOTOR VEHICLE LIABILITY 10 278,099 27 66,866 344,993 AIRCRAFT LIABILITY 11 4,135,206 6,672 784,300 4,926,178 MARINE LIABILITY 12 29,785,475 60,224 9,075,446 38,921,145 OTHER LIABILITY INSURANCE 13 10,631,990 - 6,866,112 17,498,102 CREDIT 14 874,705 - 183,729 1,058,434 SURETYSHIP 15 9,131,439 7,253 1,984,165 11,122,857 FINANCIAL LOSS 16 222,401 - 169,182 391,582 LEGAL PROTECTION 17 4,231,539 17,591 2,027,732 6,276,862 TRAVEL INSURANCE 18 228,654,730 - 52,867,687 281,522,417 LIFE 19 1,021,090 - 195,839 1,216,929 ANNUITY INSURANCE 20 14,828,340 55,033 6,163,817 21,047,191 SUPPLEMENTAL LIFE INSURANCE 21 992,976 - 213,483 1,206,458 MARRIAGE AND BIRTH ASSURANCE 22 INSURANCE LINKED WITH UNITS OF INVESTMENT 23 17,580,985 - 4,464,110 22,045,095 FUNDS – UNIT LINKED -- - -TONTINE 24 -- - -INSURANCE WITH PAID-UP SUM ASSURED 25

728,014,712 14,071,563 161,033,614 903,119,890 TOTAL (NON-LIFE, CLASSES 01 - 18) 263,078,121 55,033 63,904,937 327,038,091 TOTAL (LIFE, CLASSES 19 - 25) 991,092,833 14,126,596 224,938,551 1,230,157,980 T O T A L (CLASSES 01 - 25)

Review of the Insurance Market in 2011 29 Insurance Market in the Republic of Croatia

TABLE

Premiums earned in 2011 (in EUR)

Changes Changes of unearned of gross premium unearned provisions, Outward premium reinsurance Earned reinsurance provisions share premiums Gross premium premium (+ or -) (+ or -) in EUR Code GROUP OF CLASSES written in EUR in EUR in EUR in EUR (net amounts) 1 ACCIDENT 69,598,624 7,161,008 -188,160 974,084 63,599,860 2 HEALTH 34,320,685 192,532 794,495 -23,352 33,310,306 3 MOTOR VEHICLE CASCO 107,321,432 3,711,594 -7,626,015 -112,071 111,123,782 4 RAILWAY ROLLING STOCK - CASCO 716,317 24,183 -5,979 12,820 710,933 5 AIRCRAFT - HULL 2,035,135 1,531,600 -243,959 -331,179 416,316 6 SHIPS - HULL 27,594,360 17,007,462 524,127 -67,485 9,995,286 7 GOODS-IN-TRANSIT 8,355,931 1,563,339 -115,570 -42,946 6,865,216 8 FIRE AND NATURAL DISASTERS 76,132,085 30,238,076 159,309 -301,505 45,433,194 9 OTHER DAMAGE TO PROPERTY 101,681,697 23,004,517 -363,539 -422,433 78,618,286 10 MOTOR VEHICLE LIABILITY 394,823,470 18,592,714 2,463,266 139,972 373,907,462 11 AIRCRAFT LIABILITY 344,993 232,732 4,003 -5,837 102,421 12 MARINE LIABILITY 4,926,178 2,407,959 -22,490 1,891 2,542,600 13 OTHER LIABILITY INSURANCE 38,921,145 12,111,912 2,992,284 944,676 24,761,625 14 CREDIT 17,498,102 2,487,290 -859,604 -754,630 15,115,785 15 SURETYSHIP 1,058,434 213,227 617,298 79,987 307,896 16 FINANCIAL LOSS 11,122,857 6,796,513 205,680 273,716 4,394,381 17 LEGAL PROTECTION 391,582 177,513 -18,086 -11,802 220,353 18 TRAVEL INSURANCE 6,276,862 1,219,824 166,292 -177 4,890,568 19 LIFE 281,522,417 10,657,232 -12,043 -501 270,876,728 20 ANNUITY INSURANCE 1,216,929 136 - - 1,216,793 21 SUPPLEMENTAL LIFE INSURANCE 21,047,191 2,535,411 -141,110 147,610 18,800,500 22 MARRIAGE AND BIRTH ASSURANCE 1,206,458 37,434 - - 1,169,024 23 INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS – UNIT LINKED 22,045,095 10,574 986 - 22,033,536 24 TONTINE ----- 25 INSURANCE WITH PAID-UP SUM ASSURED -----

TOTAL (NON-LIFE, CLASSES 01 - 18) 903,119,890 128,673,996 -1,516,649 353,728 776,316,270 TOTAL (LIFE, CLASSES 19 - 25) 327,038,091 13,240,787 -152,167 147,109 314,096,580 T O T A L (CLASSES 01 - 25) 1,230,157,980 141,914,782 -1,668,815 500,837 1,090,412,851

30 TABLE

Number of insurance policies issued by groups of classes

Number Number of insurance Share of insurance Share Index policies 2010 % policies 2011 % 11/10 GROUP OF CLASSES Code 2,524,004 32.34 2,498,173 31.97 99.0 ACCIDENT 1 93,075 1.19 91,609 1.17 98.4 HEALTH 2 405,328 5.19 390,506 5.00 96.3 MOTOR VEHICLE CASCO 3 405 0.01 381 0.00 94.1 RAILWAY ROLLING STOCK - CASCO 4 116 0.00 83 0.00 71.6 AIRCRAFT - HULL 5 15,218 0.19 15,356 0.20 100.9 SHIPS - HULL 6 23,401 0.30 20,971 0.27 89.6 GOODS-IN-TRANSIT 7 503,564 6.45 501,234 6.42 99.5 FIRE AND NATURAL DISASTERS 8 567,773 7.27 579,735 7.42 102.1 OTHER DAMAGE TO PROPERTY 9 1,984,561 25.43 1,994,069 25.52 100.5 MOTOR VEHICLE LIABILITY 10 155 0.00 165 0.00 106.5 AIRCRAFT LIABILITY 11 29,306 0.38 32,241 0.41 110.0 MARINE LIABILITY 12 94,248 1.21 105,991 1.36 112.5 OTHER LIABILITY INSURANCE 13 41,037 0.53 40,170 0.51 97.9 CREDIT 14 504 0.01 563 0.01 111.7 SURETYSHIP 15 29,378 0.38 28,702 0.37 97.7 FINANCIAL LOSS 16 5,901 0.08 4,935 0.06 83.6 LEGAL PROTECTION 17 148,578 1.90 152,602 1.95 102.7 TRAVEL INSURANCE 18 754,208 9.66 753,529 9.64 99.9 LIFE 19 3,312 0.04 3,076 0.04 92.9 ANNUITY INSURANCE 20 520,915 6.67 539,739 6.91 103.6 SUPPLEMENTAL LIFE INSURANCE 21 4,552 0.06 4,355 0.06 95.7 MARRIAGE AND BIRTH ASSURANCE 22 INSURANCE LINKED WITH UNITS OF INVESTMENT 23 55,213 0.71 54,972 0.70 99.6 FUNDS – UNIT LINKED - 0.00 - 0.00 0.0 TONTINE 24 - 0.00 - 0.00 0.0 INSURANCE WITH PAID-UP SUM ASSURED 25

6,466,552 82.85 6,457,486 82.65 99.9 TOTAL (NON-LIFE, CLASSES 01 - 18) 1,338,200 17.15 1,355,671 17.35 101.3 TOTAL (LIFE, CLASSES 19 - 25) 7,804,752 100.00 7,813,157 100.00 100.1 T O T A L (CLASSES 01 - 25)

Review of the Insurance Market in 2011 31 Insurance Market in the Republic of Croatia

TABLE

Loss experience in 2011 by groups of classes

Number of Number of settled Number of Number of claims claims unsettled reserved claims reported claims Code GROUP OF CLASSES on 1st Jan in a year paid declined on 31st Dec 1 ACCIDENT 9,026 24,539 17,445 8,293 7,827 2 HEALTH 19,381 302,477 295,159 11,086 15,613 3 MOTOR VEHICLE CASCO 29,728 111,712 100,969 11,111 29,360 4 RAILWAY ROLLING STOCK - CASCO 40 322 255 19 88 5 AIRCRAFT - HULL 14 10 11 4 9 6 SHIPS - HULL 669 1,784 1,450 344 659 7 GOODS-IN-TRANSIT 368 4,887 4,869 167 219 8 FIRE AND NATURAL DISASTERS 5,554 26,788 23,463 3,596 5,283 9 OTHER DAMAGE TO PROPERTY 10,990 96,108 85,746 10,900 10,452 10 MOTOR VEHICLE LIABILITY 47,564 97,529 89,678 12,729 42,686 11 AIRCRAFT LIABILITY 14 1 0 0 15 12 MARINE LIABILITY 621 234 111 188 556 13 OTHER LIABILITY INSURANCE 5,884 15,280 10,966 4,007 6,191 14 CREDIT 627 5,206 4,064 620 1,149 15 SURETYSHIP 19 114 107 5 21 16 FINANCIAL LOSS 417 1,897 1,704 217 393 17 LEGAL PROTECTION 10 6 3 7 6 18 TRAVEL INSURANCE 501 2,916 2,742 224 451 19 LIFE 2,061 47,560 46,929 531 2,161 20 ANNUITY INSURANCE 12 356 342 2 24 21 SUPPLEMENTAL LIFE INSURANCE 4,900 5,791 4,302 2,145 4,244 22 MARRIAGE AND BIRTH ASSURANCE 22 241 234 2 27 23 INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS – UNIT LINKED 58 5,223 5,215 20 46 24 TONTINE 00000 25 INSURANCE WITH PAID-UP SUM ASSURED 00000

TOTAL (NON-LIFE, CLASSES 01 - 18) 131,427 691,810 638,742 63,517 120,978 TOTAL (LIFE, CLASSES 19 - 25) 7,053 59,171 57,022 2,700 6,502 T O T A L (CLASSES 01 - 25) 138,480 750,981 695,764 66,217 127,480

32 TABLE

Number of claims paid by groups of classes

Number of Number of claims Share claims Share Index paid 2010 % paid 2011 % 11/10 GROUP OF CLASSES Code 17,869 2.58 17,445 2.51 97.6 ACCIDENT 1 285,853 41.24 295,159 42.42 103.3 HEALTH 2 102,925 14.85 100,969 14.51 98.1 MOTOR VEHICLE CASCO 3 178 0.03 255 0.04 143.3 RAILWAY ROLLING STOCK - CASCO 4 16 0.00 11 0.00 68.8 AIRCRAFT - HULL 5 1,632 0.24 1,450 0.21 88.8 SHIPS - HULL 6 6,330 0.91 4,869 0.70 76.9 GOODS-IN-TRANSIT 7 25,775 3.72 23,463 3.37 91.0 FIRE AND NATURAL DISASTERS 8 88,030 12.70 85,746 12.32 97.4 OTHER DAMAGE TO PROPERTY 9 93,860 13.54 89,678 12.89 95.5 MOTOR VEHICLE LIABILITY 10 2 0.00 - 0.00 0.0 AIRCRAFT LIABILITY 11 135 0.02 111 0.02 82.2 MARINE LIABILITY 12 10,615 1.53 10,966 1.58 103.3 OTHER LIABILITY INSURANCE 13 4,853 0.70 4,064 0.58 83.7 CREDIT 14 29 0.00 107 0.02 369.0 SURETYSHIP 15 1,663 0.24 1,704 0.24 102.5 FINANCIAL LOSS 16 4 0.00 3 0.00 75.0 LEGAL PROTECTION 17 2,267 0.33 2,742 0.39 121.0 TRAVEL INSURANCE 18 42,346 6.11 46,929 6.74 110.8 LIFE 19 287 0.04 342 0.05 119.2 ANNUITY INSURANCE 20 4,346 0.63 4,302 0.62 99.0 SUPPLEMENTAL LIFE INSURANCE 21 215 0.03 234 0.03 108.8 MARRIAGE AND BIRTH ASSURANCE 22 INSURANCE LINKED WITH UNITS OF INVESTMENT 23 3,844 0.55 5,215 0.75 135.7 FUNDS – UNIT LINKED - 0.00 - 0.00 0.0 TONTINE 24 - 0.00 - 0.00 0.0 INSURANCE WITH PAID-UP SUM ASSURED 25

642,036 92.64 638,742 91.80 99.5 TOTAL (NON-LIFE, CLASSES 01 - 18) 51,038 7.36 57,022 8.20 111.7 TOTAL (LIFE, CLASSES 19 - 25) 693,074 100.00 695,764 100.00 100.4 T O T A L (CLASSES 01 - 25)

Review of the Insurance Market in 2011 33 Insurance Market in the Republic of Croatia

TABLE

Claims paid, gross amounts by groups of classes (in EUR)

Claims paid, Claims paid, gross amounts Share gross amounts Share Index Code GROUP OF CLASSES in EUR 2010 % in EUR 2011 % 11/10 1 ACCIDENT 19,596,778 3.31 16,582,321 2.70 84.6 2 HEALTH 25,853,781 4.37 26,222,986 4.27 101.4 3 MOTOR VEHICLE CASCO 98,737,948 16.70 88,035,508 14.33 89.2 4 RAILWAY ROLLING STOCK - CASCO 79,969 0.01 64,830 0.01 81.1 5 AIRCRAFT - HULL 1,777,001 0.30 280,233 0.05 15.8 6 SHIPS - HULL 11,098,811 1.88 13,069,815 2.13 117.8 7 GOODS-IN-TRANSIT 5,731,211 0.97 2,727,907 0.44 47.6 8 FIRE AND NATURAL DISASTERS 26,563,055 4.49 32,934,340 5.36 124.0 9 OTHER DAMAGE TO PROPERTY 64,814,723 10.96 66,581,178 10.84 102.7 10 MOTOR VEHICLE LIABILITY 161,689,169 27.35 160,807,513 26.17 99.5 11 AIRCRAFT LIABILITY 2,527 0.00 521 0.00 20.6 12 MARINE LIABILITY 953,244 0.16 941,749 0.15 98.8 13 OTHER LIABILITY INSURANCE 14,962,268 2.53 14,592,071 2.37 97.5 14 CREDIT 15,108,337 2.56 13,885,823 2.26 91.9 15 SURETYSHIP 950,219 0.16 41,488 0.01 4.4 16 FINANCIAL LOSS 2,579,285 0.44 1,651,534 0.27 64.0 17 LEGAL PROTECTION 27,898 0.00 22,918 0.00 82.1 18 TRAVEL INSURANCE 1,076,933 0.18 1,294,843 0.21 120.2 19 LIFE 128,243,877 21.69 160,466,875 26.12 125.1 20 ANNUITY INSURANCE 900,437 0.15 1,158,484 0.19 128.7 21 SUPPLEMENTAL LIFE INSURANCE 4,495,746 0.76 4,550,731 0.74 101.2 22 MARRIAGE AND BIRTH ASSURANCE 452,155 0.08 549,675 0.09 121.6 23 INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS – UNIT LINKED 5,594,505 0.95 7,962,610 1.30 142.3 24 TONTINE - 0.00 - 0.00 0.0 25 INSURANCE WITH PAID-UP SUM ASSURED - 0.00 - 0.00 0.0

TOTAL (NON-LIFE, CLASSES 01 - 18) 451,603,157 76.38 439,737,577 71.57 97.4 TOTAL (LIFE, CLASSES 19 - 25) 139,686,721 23.62 174,688,375 28.43 125.1 T O T A L (CLASSES 01 - 25) 591,289,878 100.00 614,425,952 100.00 103.9

34 TABLE

Number of reserved claims by groups of classes

Number of Number of reserved reserved claims claims on Share on Share Index 31st Dec 2010 % 31st Dec 2011 % 11/10 GROUP OF CLASSES Code 9,026 6.52 7,827 6.14 86.7 ACCIDENT 1 19,381 14.00 15,613 12.25 80.6 HEALTH 2 29,728 21.47 29,360 23.03 98.8 MOTOR VEHICLE CASCO 3 40 0.03 88 0.07 220.0 RAILWAY ROLLING STOCK - CASCO 4 14 0.01 9 0.01 64.3 AIRCRAFT - HULL 5 669 0.48 659 0.52 98.5 SHIPS - HULL 6 368 0.27 219 0.17 59.5 GOODS-IN-TRANSIT 7 5,554 4.01 5,283 4.14 95.1 FIRE AND NATURAL DISASTERS 8 10,990 7.94 10,452 8.20 95.1 OTHER DAMAGE TO PROPERTY 9 47,564 34.35 42,686 33.48 89.7 MOTOR VEHICLE LIABILITY 10 14 0.01 15 0.01 107.1 AIRCRAFT LIABILITY 11 617 0.45 556 0.44 90.1 MARINE LIABILITY 12 5,888 4.25 6,191 4.86 105.1 OTHER LIABILITY INSURANCE 13 628 0.45 1,149 0.90 183.0 CREDIT 14 19 0.01 21 0.02 110.5 SURETYSHIP 15 417 0.30 393 0.31 94.2 FINANCIAL LOSS 16 10 0.01 6 0.00 60.0 LEGAL PROTECTION 17 501 0.36 451 0.35 90.0 TRAVEL INSURANCE 18 2,052 1.48 2,161 1.70 105.3 LIFE 19 12 0.01 24 0.02 200.0 ANNUITY INSURANCE 20 4,901 3.54 4,244 3.33 86.6 SUPPLEMENTAL LIFE INSURANCE 21 22 0.02 27 0.02 122.7 MARRIAGE AND BIRTH ASSURANCE 22 INSURANCE LINKED WITH UNITS OF INVESTMENT 23 58 0.04 46 0.04 79.3 FUNDS – UNIT LINKED - 0.00 - 0.00 0.0 TONTINE 24 - 0.00 - 0.00 0.0 INSURANCE WITH PAID-UP SUM ASSURED 25

131,428 94.91 120,978 94.90 92.0 TOTAL (NON-LIFE, CLASSES 01 - 18) 7,045 5.09 6,502 5.10 92.3 TOTAL (LIFE, CLASSES 19 - 25) 138,473 100.00 127,480 100.00 92.1 T O T A L (CLASSES 01 - 25)

Review of the Insurance Market in 2011 35 Insurance Market in the Republic of Croatia

TABLE

Outstanding claims provision, gross amounts by groups of classes (in EUR)

Outstanding Outstanding claims provision, claims provision, gross amounts Share gross amounts Share Index Code GROUP OF CLASSES in EUR 2010 % in EUR 2011 % 11/10 1 ACCIDENT 41,013,763 4.64 39,131,885 4.37 95.4 2 HEALTH 3,631,425 0.41 3,224,751 0.36 88.8 3 MOTOR VEHICLE CASCO 42,094,204 4.76 38,910,734 4.35 92.4 4 RAILWAY ROLLING STOCK - CASCO 115,842 0.01 199,935 0.02 172.6 5 AIRCRAFT - HULL 547,122 0.06 462,965 0.05 84.6 6 SHIPS - HULL 12,737,245 1.44 15,527,491 1.74 121.9 7 GOODS-IN-TRANSIT 4,185,601 0.47 3,353,014 0.37 80.1 8 FIRE AND NATURAL DISASTERS 21,549,440 2.44 30,158,067 3.37 139.9 9 OTHER DAMAGE TO PROPERTY 30,950,920 3.50 30,874,436 3.45 99.8 10 MOTOR VEHICLE LIABILITY 606,380,272 68.53 602,396,125 67.32 99.3 11 AIRCRAFT LIABILITY 423,380 0.05 431,407 0.05 101.9 12 MARINE LIABILITY 7,314,100 0.83 7,684,125 0.86 105.1 13 OTHER LIABILITY INSURANCE 69,645,004 7.87 70,139,431 7.84 100.7 14 CREDIT 10,444,526 1.18 12,984,011 1.45 124.3 15 SURETYSHIP 122,989 0.01 249,412 0.03 202.8 16 FINANCIAL LOSS 2,204,689 0.25 8,350,026 0.93 378.7 17 LEGAL PROTECTION 428,895 0.05 474,704 0.05 110.7 18 TRAVEL INSURANCE 600,282 0.07 744,690 0.08 124.1 19 LIFE 14,444,950 1.63 14,189,975 1.59 98.2 20 ANNUITY INSURANCE 91,898 0.01 106,607 0.01 116.0 21 SUPPLEMENTAL LIFE INSURANCE 15,695,725 1.77 14,939,367 1.67 95.2 22 MARRIAGE AND BIRTH ASSURANCE 118,035 0.01 152,300 0.02 129.0 23 INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS – UNIT LINKED 96,182 0.01 134,185 0.01 139.5 24 TONTINE - 0.00 - 0.00 0.0 25 INSURANCE WITH PAID-UP SUM ASSURED - 0.00 - 0.00 0.0

TOTAL (NON-LIFE, CLASSES 01 - 18) 854,389,697 96.56 865,297,211 96.70 101.3 TOTAL (LIFE, CLASSES 19 - 25) 30,446,790 3.44 29,522,434 3.30 97.0 T O T A L (CLASSES 01 - 25) 884,836,487 100.00 894,819,645 100.00 101.1

36 Review of the Insurance Market in 2011 37

NON-LIFE INSURANCE14 (1-18)

14 Data for the period 2003-2006 – source Croatian Financial Services Supervisory Agency; Data for period 2007-2011 delivered by insurance companies through the web application HUO_Statistika

NOTE:

The amount of Gross premium written in non-life insurance comprises the premium of co-insurance:

· in 2011 to a total of €1,173,697 · in 2010 to a total of €1,358,308 · in 2009 to a total of €789,743 non-life insurance CP share in GWP

Year 2003 2004 2005 2006 2007 2008 2009 2010 2011

ACCIDENT % 34.59% 35.39% 33.48% 31.05% 29.89% 30.84% 28.86% 27.42% 23.83% INSURANCE (01)

Code 01.01 01.02 01.03 01.04 01.05 01.06 01.07 01.99 Total Gross premium written 30,763 25,459 1,948 1,079 948 872 602 7,927 69,599 03 Claims paid 11,993 2,261 1,633 49 199 26 33 387 16,582 CP share in GWP 38.99% 8.88% 83.81% 4.53% 21.03% 3.00% 5.52% 4.89% 23.83% Every year since 2009 the gross premium written in accident insurance recorded a decrease and compared to 2010 it was lower by 2.6% in 2011 and amounted to €69.6 million. The ratio between gross premium written and claims paid show a continuous fall of the share of claims paid in gross premium written, so that in 2011 the share was by 13.10% lower than in 2010. The share of claims paid in gross premium written according to group of risk in this insurance class varies a lot. Thus the largest share by 83.81% falls to group Share Gross 01.03. accident insurance for children % premium and pupils against consequential loss and written special accident insurance for teenagers, TABLE Year in EUR 000 Index Non-Life Total GWP then followed by a 38.99% share under 2003 60,301 112.4 9.50 7.39 the group 01.01. personal accident insurance in the case of accidents at or 2004 61,648 102.2 9.06 6.92 outside regular work, while the smallest 2005 63,214 102.5 8.62 6.39 share by 3.00% brings groups 01.06. Accident - 2006 67,299 106.5 8.32 6.12 other accident insurance against Gross 2007 70,652 105.0 7.98 5.79 consequential loss. premium written The gross claims ratio in accident for the period 2008 73,651 104.2 7.67 5.65 insurance in 2010 was 26.06%, while in 2003-2011 2009 73,586 99.9 7.90 5.81 2011 it was 21.06%. Gross claims ratio is 2010 71,478 97.1 7.83 5.75 defined as: (Gross premium written +/- adjustment in 2011 69,599 97.4 7.71 5.66 the unearned premiums provision ) / (claims paid, gross amount +/- adjustment in the outstanding claims provision). The accident GWP share in non-life gross premium decreased by 1.53% and in Share relation to total gross premium written fell % Claims paid, by 1.57%. By this the trend of the falling gross amounts premium share from the year before TABLE Year in EUR 000 Index Non-Life Total GWP continues. 2003 20,860 95.7 5.56 5.23 The share of claims paid of this insurance 2004 21,815 104.6 5.50 5.05 class in non-life claims paid is in relation to the year 2010 by 13.13% lower and by 2005 21,166 97.0 5.01 4.55 18.43% lower in relation to the total of Accident - 2006 20,893 98.7 4.43 3.95 Claims paid claims paid. 2007 21,115 101.1 4.32 3.67 The structure of accident insurance for the period premium in 2011 compared to 2010 is 2003-2011 2008 22,714 107.6 4.32 3.68 very alike, the largest premium share by 2009 21,237 93.5 4.10 3.30 44.21% falls to personal accident 2010 19,597 92.3 4.34 3.31 insurance in case of accidents at or outside regular work followed by motor 2011 16,582 84.6 3.77 2.70 vehicle passenger insurance and accident insurance against consequential loss by 36.57%.

40 30,000 50,000 60,000 70,000 80,000 20,000 40,000 10,000

0 000 €

2003

2004

GRAPH 2005

2006

2007 Accident - Gross premium written and 2008 claims paid

2009

2010 Gross premium written in EUR 000

2011 Claims paid, gross amounts in EUR 000 10 4 5 6 7 8 9 3.00 .00 .00 .00 .00 .00 .00 .00 %

GRAPH 2003 7.39 9.50

2004 6.92 9.06

2005 6.39 8.62

2006 6.12 8.32 Accident - Premium 2007 5.79 7.98 share % 2008 5.65 7.67 Share (%) 5.81 7.90 2009 Total GPW 2010 5.75 7.83 Share (%) 2011 5.66 7.71 Non-Life 3 4 4 5 5 6 2.50 3.00 .50 .00 .50 .00 .50 .00 %

GRAPH 2003 5.23 5.56

2004 5.05 5.50

2005 4.55 5.01

2006 3.95 4.43 Accident - Shares 2007 3.67 4.32 of gross claims 2008 3.68 4.32 paid % Share (%) 2009 3.30 4.10 Total claims 2010 3.31 4.34 Share (%) 2011 2.70 3.77 Non-Life

Accident Insurance 41 non-life insurance

TABLE Code Group of classes / risks 01.01 Personal accident insurance in the case of accidents at or outside regular work 01.02 Motor vehicle passenger insurance and accident insurance against consequential loss at special occupations 01.03 Accident insurance for children and pupils against consequential loss and special accident insurance for teenagers 01.04 Accident insurance of guests, performance and show visitors, excursionists and tourists Accident - Accident insurance of consumers, subscribers, beneficiaries of other public services Gross premium 01.05 written and 01.06 Other accident insurance against consequential loss number of policies 01.07 Compulsory accident insurance for passengers in public transport issued in 2011 01.99 Other accident insurance against consequential loss

TOTAL 01

TABLE Code Group of classes / risks 01.01 Personal accident insurance in the case of accidents at or outside regular work 01.02 Motor vehicle passenger insurance and accident insurance against consequential loss at special occupations 01.03 Accident insurance for children and pupils against consequential loss and special accident insurance for teenagers 01.04 Accident insurance of guests, performance and show visitors, excursionists and tourists Accident - Accident insurance of consumers, subscribers, beneficiaries of other public services Number and amounts 01.05 of claims paid 01.06 Other accident insurance against consequential loss in 2011 01.07 Compulsory accident insurance for passengers in public transport 01.99 Other accident insurance against consequential loss

TOTAL 01

42 Gross premium written Share Number of Share in EUR 000 in % policies issued in % Code 30,763 44.20 158,087 6.33 01.01 25,459 36.58 2,100,726 84.09 01.02 1,948 2.80 4,723 0.19 01.03 1,079 1.55 27,915 1.12 01.04 948 1.36 33,391 1.34 01.05 872 1.25 739 0.03 01.06 603 0.87 5,630 0.23 01.07 7,927 11.39 166,962 6.68 01.99

69,599 100.00 2,498,173 100.00

Claims paid, Number of Share gross amount Share claims paid in % in EUR 000 in % Code 7,993 45.82 11,993 72.32 01.01 1,023 5.86 2,261 13.64 01.02 7,624 43.70 1,633 9.85 01.03 46 0.26 49 0.30 01.04 424 2.43 199 1.20 01.05 34 0.19 26 0.16 01.06 36 0.21 33 0.20 01.07 265 1.52 387 2.34 01.99

17,445 100.00 16,582 100.00

Accident Insurance 43 non-life insurance HEALTH INSURANCE (02)

03 Gross premium in health insurance kept the same share in total gross premium written compared to last year which means that the health insurance market recorded a slight decline compared to the market of total gross premium written. Though for the third year in a row total premium written in health insurance lines reflect a severe drop compared to the years before, one can notice that the premium remained at almost the same level as last year i.e. that the premium is Share (%) lower by merely €1.8 million compared Gross premium to the year before. With respect to the written in Year EUR 000 Index Non-Life Total GWP relatively similar premium amount in this TABLE 2003 14,067 112.4 2.22 1.72 and the years before a continuance of the premium at the same level can be 2004 17,134 121.8 2.52 1.92 expected, meaning that it would be 2005 25,187 147.0 3.43 2.55 below 3% of total gross premium written. Health - 2006 29,790 118.3 3.68 2.71 Gross premium With respect to the trends in the previous 2007 33,878 113.7 3.83 2.78 periods more significant changes in written for the period 2008 37,826 111.7 3.94 2.90 gross premium written are not to be 2003-2011 2009 36,476 96.4 3.92 2.88 expected. 2010 34,799 95.4 3.81 2.80 Like with gross premium written, claims paid stayed at the same level as last year, 2011 34,321 98.6 3.80 2.79 that is, the amount of claims paid grew by merely €369 thousand. The share of claims paid in gross premium written was 76%, slightly more compared to the year before when it stood at 74%. Like with gross premium written no significant Share (%) changes in the amounts of claims paid Claims paid, can be expected and the predictions are gross amounts that the share in total amount of claims TABLE Year in EUR 000 Index Non-Life Total claims paid shall be up to 4.5%. 2003 13,529 95.7 3.60 3.39 The health insurance market in its whole 2004 13,101 96.8 3.30 3.03 shows a stagnation in gross premium 2005 14,902 113.7 3.53 3.21 written as well as in claims paid. Taking Health - 2006 16,975 113.9 3.60 3.21 into consideration the entire economic Claims paid 2007 21,701 127.8 4.44 3.78 circumstances and the fact that health for the period insurance in most of its groups 2003-2011 2008 24,405 112.5 4.64 3.95 represents voluntary insurance, and 2009 27,841 114.1 5.38 4.33 particularly that tax relief is no more granted for voluntary health insurance it 2010 25,854 92.9 5.72 4.37 is optimistic to claim that maintenance of 2011 26,223 101.4 5.96 4.27 the same premium level as in the previous year before may be considered a positive result.

44 30,000 35,000 10,000 15,000 20,000 25,000 40,000 5,000

0 000 €

2003

2004

2005 GRAPH

2006

2007 Health - Gross 2008 premium written and claims paid 2009

2010 Gross premium written in EUR 000

2011 Claims paid, gross amounts in EUR 000 0.00 4.00 0.50 4.50 5.00 2.00 3.00 2.50 3.50 1.00 1.50

%

GRAPH 2003 1.72 2.22

2004 1.92 2.52

2005 2.55 3.43

2006 2.71 3.68 Health - Premium 2007 2.78 3.83 share - % 2008 2.90 3.94

2009 2.88 3.92

2010 2.80 3.81

2011 2.79 3.80

Share (%) Total GWP Share (%) Non-Life 4.00 4.50 5.00 3.00 6.00 5.50 5.75 3.50 4.25 5.25 4.75 3.25 3.75

%

GRAPH

2003 3.39 3.60

2004 3.03 3.30

2005 3.21 3.53

2006 3.21 3.60 Health - Shares 2007 3.78 4.44 of gross claims 2008 3.95 4.64 paid - %

2009 4.33 5.38

2010 4.37 5.72

2011 4.27 5.96

Share (%) Total claims Share (%) Non-Life

Health Insurance 45 non-life insurance

TABLE Code Group of classes / risks 02.01 Mandatory insurance against costs incurred in case of industrial injury and occupational disease 02.02 Complementary health insurance against the difference above the coverage provided by mandatory health insurance 02.04 Supplementary health insurance for higher standards of health services than those stipulated by mandatory health insurance Health - Private health insurance Gross premium 02.06 written and number 02.99 Other voluntary health insurance of policies issued in 2011 TOTAL 02

TABLE Code Group of classes / risks 02.01 Mandatory insurance against costs incurred in case of industrial injury and occupational disease 02.02 Complementary health insurance against the difference above the coverage provided by mandatory health insurance 02.04 Supplementary health insurance for higher standards of health services than those stipulated by mandatory health insurance Health - Private health insurance Number and amounts 02.06 of claims paid 02.99 Other voluntary health insurance in 2011 TOTAL 02

TABLE Code Group of classes / risks 02.01 Mandatory insurance against costs incurred in case of industrial injury and occupational disease 02.02 Complementary health insurance against the difference above the coverage provided by mandatory health insurance 02.04 Supplementary health insurance for higher standards of health services than those stipulated by mandatory health insurance Health - 02.06 Private health insurance Number of insureds in 2011 02.99 Other voluntary health insurance

TOTAL 02

46 Like in the previous period supplementary health insurance represents the most significant group in the health insurance class and accounted for 77.83% of total health Gross premium insurance premium written. The leader written Share Number of Share in EUR 000 in % policies issued in % Code in complementary health insurance still 0 0.00 0 0.00 02.01 remains the Croatian Health Insurance 3,537 10.30 11,735 12.81 02.02 Institute which determines the 02.04 premium according to means tests of 26,715 77.84 74,310 81.12 insureds and not by the assessment of 0 0.00 0 0.00 02.06 relevant risks. By this, complementary 4,070 11.86 5,564 6.07 02.99 health insurance written by insurers 34,321 100.00 91,609 100.00 according to market principles generated only €3.5 million which compared to the gross premium in complementary insurance (€161.4 million according to the report of the Croatian Health Insurance Institute from March 2012) is quite insignificant. Higher amounts of co-payments, i.e. participation of the insureds in Claims paid, mandatory health insurance costs, as Number of Share gross amount Share claims paid in % in EUR 000 in % Code well as better positioning of insurers 22 0.01 -39 - 02.01 that transact business according to 65,736 22.27 1,175 4.48 02.02 market principles may lead to a growth 216,758 73.44 21,160 80.69 02.04 in this insurance class. The share of claims paid compared to 0 0.00 0 0.00 02.06 the total gross premium written still 12,643 4.28 3,926 14.97 02.99 accounts for high 76% and by this 295,159 100.00 26,223 100.00 remained at the same level as the year before. The average claim in supplementary health insurance is €97 (last year it stood at €91) which makes a 7% increase. The reason for that lies probably in the increase of health insurance services costs. The average claim in complementary Number of insureds insurance is €18 (last year it stood at Number of insureds (active policies) through a year on 31th Dec Code €21), the ratio between claims paid and 0002.01 premium written being more favourable 43,834 40,426 02.02 for insurers compared to last year. For 02.04 reasons that have already been quoted 186,958 165,715 it may be expected that in the 0002.06 forthcoming period the health 33,810 30,539 02.99 insurance market shall develop mostly 264,602 236,680 in complementary insurance.

Private health insurance has not been defined by the essential legal acts and has not been offered in the insurance market.

Health Insurance 47 non-life insurance MOTOR VEHICLE (CASCO) INSURANCE (03)

03 For the second time since 2006 and that is two years in a row the gross premium written in motor vehicle (casco) insurance (MC) amounted less than one billion kuna (€107.3 million) which compared to last year indicates a continuous drop of 10.2%, yet being less than the drop in 2010 which stood at 11.5%. After another weak year the question we may ask ourselves is which years make an exception: the previous year or the years 2007-2009 when the premium in this insurance class exceeded one billion Share (%) kuna. Gross premium The trend of the decline of the premium written in Year EUR 000 Index Non-Life Total GWP share in gross premiums continued and TABLE 2003 96,562 105.2 15.22 11.83 came down to 8.72% (in 2009 at 10.67% and in 2010 at 9.61%). By this the gross 2004 106,888 110.7 15.71 11.99 premium written in motor vehicle (casco) 2005 116,742 109.2 15.91 11.81 insurance stood in 2010 at the same Motor (Casco) - 2006 129,011 110.5 15.94 11.72 Gross premium level as in 2004. 2007 144,570 112.1 16.33 11.86 There are two reasons for the continuous premium written for the period 2008 155,211 107.4 16.16 11.91 premium drop in this insurance class. 2003-2011 2009 135,072 87.0 14.51 10.67 First, in the Croatian fully comprehensive coverage market, lacking franchise 2010 119,534 88.5 13.09 9.61 tradition and culture, motor vehicle casco 2011 107,321 89.8 11.88 8.72 insurance is primarily linked to new vehicles, so the stagnation in sale of new motor vehicles (the number of new vehicles sold has been halved since 2008) and an aging vehicle fleet (average age of vehicle over 11 years) brought to a Share (%) decrease in this insurance class. Claims paid, gross amounts Secondly, in 2011 this market segment TABLE Year in EUR 000 Index Non-Life Total claims especially the part referring to insurance 2003 66,878 122.8 17.81 16.77 for self-propelled vehicles with a 96.22% 2004 77,821 116.4 19.60 18.02 share in this insurance class (03) was besieged by an intense competition in the 2005 81,270 104.4 19.24 17.49 market and an eager fight of insurers for Motor (Casco) - 2006 88,190 108.5 18.68 16.68 Claims paid every insurance policy and every client – 2007 94,314 106.9 19.29 16.42 for the period regardless of the weak profitability of this 2003-2011 2008 106,361 112.8 20.23 17.22 segment which was negative again with 2009 109,120 102.6 21.07 16.97 the majority of insurers. 2010 98,738 90.5 21.86 16.70 In 2011 the decline of the gross premium written was followed by a drop of claims 2011 88,036 89.2 20.02 14.33 paid amounts which were by 11.2% lower compared to 2010.

48 100,000 120,000 140,000 160,000 180,000 60,000 40,000 80,000 20,000

0 000 €

2003

2004

GRAPH 2005

2006

2007 Motor (Casco) - Gross 2008 premium written and claims paid

2009

Gross premium written 2010 in EUR 000

Claims paid, gross amounts 2011 in EUR 000 11.00 15.00 16.00 10.00 14.00 12.00 13.00 17.00 8.00 9.00

%

GRAPH

2003 11.83 15.22

2004 11.99 15.71

2005 11.81 15.91

2006 11.72 15.94 Motor (Casco) - Premium 2007 11.86 16.33 share - % 2008 11.91 16.16 14.51 Share (%) Total GWP 2009 10.67

2010 9.61 13.09 Share (%) Non-Life 2011 8.72 11.88 22.00 16.00 18.00 10.00 14.00 20.00 12.00 24.00

%

GRAPH 2003 16.77 17.81

2004 18.02 19.60

2005 17.49 19.24

2006 16.68 18.68 Motor (Casco) - Shares of 2007 16.42 19.29 gross claims 2008 17.22 20.23 paid - % Share (%) Total claims 2009 16.97 21.07 2010 16.70 21.86 Share (%) Non-Life 2011 14.33 20.02

Motor Vehicle (Casco) Insurance 49 non-life insurance

TABLE Code Group of classes / risks 03.01 Motor hull insurance for self-propelled vehicles 03.02 Motor hull insurance for non-self-propelled vehicles 03.99 Other motor hull insurance Motor (Casco) - TOTAL 03 Gross premium written and number of policies issued in 2011

TABLE Code Group of classes / risks 03.01 Motor hull insurance for self-propelled vehicles 03.02 Motor hull insurance for non-self-propelled vehicles 03.99 Other motor hull insurance Motor (Casco) - TOTAL 03 Number and amounts of claims paid in 2011

50 Gross premium written Share Number of Share in EUR 000 in % policies issued in % Code 103,005 95.98 301,810 77.29 03.01 803 0.75 4,411 1.13 03.02 3,513 3.27 84,285 21.58 03.99

107,321 100.00 390,506 100.00

Claims paid, Number of Share gross amount Share claims paid in % in EUR 000 in % Code 93,990 93.09 85,207 96.79 03.01 401 0.40 553 0.63 03.02 6,578 6.51 2,276 2.59 03.99

100,969 100.00 88,036 100.00

Motor Vehicle (Casco) Insurance 51 non-life insurance CP share in GWP

Year 2003 2004 2005 2006 2007 2008 2009 2010 2011

RAILWAY ROLLING % 10.97 21.36 1.57 6.00 4.21 27.64 6.55 9.76 9.05 STOCK – CASCO

INSURANCE Share (%) Gross premium (04) written in TABLE Year EUR 000 Index Non-Life Total GWP 2003 126 112.6 0.02 0.02 2004 182 144.1 0.03 0.02 03 2005 351 192.6 0.05 0.04 Railway rolling stock 2006 316 90.2 0.04 0.03 – Casco - 2007 617 195.2 0.07 0.05 Compared to 2010 the gross premium Gross premium written in this class was by 12.6% lower written 2008 221 35.9 0.02 0.02 for the period 2009 423 191.1 0.05 0.03 and amounted to €716 thousand. This 2003-2011 insurance class had a share of 0.08% in 2010 820 193.8 0.09 0.07 total non-life gross premium written 2011 716 87.4 0.08 0.06 and a share of 0.06% in total gross premium written. Looking at the past nine years the claims paid share in gross premium Share written in this insurance class (%) Claims paid, fluctuated from 1.57% in 2005 to 27.64% gross amounts TABLE Year in EUR 000 Index Non-Life Total claims in 2008. This share bas by 7.27% lower 2003 14 1.287.5 0.00 0.00 in 2011 compared to 2010. 2004 39 280.6 0.01 0.01 This insurance line continues its trend 2005 6 14.2 0.00 0.00 of very good results in the ratio of Railway rolling stock 2006 19 343.9 0.00 0.00 – Casco - claims paid and gross premium written 2007 26 136.9 0.01 0.00 Claims paid which for the period 2003-2011 for the period 2008 61 235.8 0.01 0.01 accounted for 8.93%. 2003-2011 2009 28 45.3 0.01 0.00 2010 80 288.8 0.02 0.01 2011 65 81.0 0.01 0.01

TABLE

Gross premium written Share Number of Share Code Group of classes / risks in EUR 000 in % policies issued in % Railway rolling stock 04.01 Railway rolling stock casco insurance 716 100.00 381 100.00 – Casco - Gross premium TOTAL 04 716 100.00 381 100.00 written and policies issued in 2011

TABLE

Claims paid, Number of Share gross amount Share Code Group of classes / risks claims paid in % in EUR 000 in % Railway rolling stock 04.01 Railway rolling stock casco insurance 255 100.00 65 100.00 – Casco - Number and TOTAL 04 255 100.00 65 100.00 amounts of claims paid in 2011

52 GRAPH

Railway rolling stock – Casco - Gross premium written and claims paid 100 200 300 400 500 600 700 800 900

0 000 €

2003

2004

2005

2006

2007

2008

2009

2010

2011

Gross premium written in EUR 000

Claims paid, gross amounts in EUR 000

Railway Rolling Stock – Casco Insurance 53 non-life insurance

Year 2003 2004 2005 2006 2007 2008 2009 2010 2011

AIRCRAFT HULL Number 94 90 104 94 95 115 107 116 83 INSURANCE

(05) Share (%) Gross premium written in TABLE Year EUR 000 Index Non-Life Total GWP 2003 3,418 67.6 0.54 0.42 2004 3,705 108.4 0.54 0.42 03 2005 4,818 130.0 0.66 0.49 The number of insured aircrafts decreased Aircraft Hull - 2006 4,594 95.4 0.57 0.42 Gross premium by 33 aircrafts or by 29.45% compared to 2007 2,117 46.1 0.24 0.17 the year before – the decrease mainly written affected the number of light aircrafts whose for the period 2008 2,261 106.8 0.24 0.17 owners were compelled to ground their 2003-2011 2009 2,674 118.2 0.29 0.21 aircrafts due to high fuel prices and 2010 3,153 117.9 0.35 0.25 maintenance costs and consequently did not conclude insurance in 2011. 2011 2,035 64.5 0.23 0.17 The number of aircraft insurance policies issued during the period of observation was: The premium decreased by 35.46% against 2010 because the second largest airline Dubrovnik Airlines ceased operation. Due to financial problems Dubrovnik Share (%) Airlines was put out of business mid August Claims paid, 2011 and the total gross premium written gross amounts decreased by €8.3 million. TABLE Year in EUR 000 Index Non-Life Total claims During 2011 claims decreased significantly 2003 88 24.7 0.02 0.02 by 84.26% compared to 2010. No severe 2004 75 84.9 0.02 0.02 claim was recorded for which reason the year 2011 may be considered as one of 2005 131 174.6 0.03 0.03 better insurance years of this class. In other Aircraft Hull - 2006 872 665.9 0.18 0.16 Claims paid words the ratio between claims paid and 2007 152 17.4 0.03 0.03 premium written in 2011 stood at 13.76%. for the period This insurance class continues its trend of 2003-2011 2008 973 639.5 0.19 0.16 achieving very good results in the ratio of 2009 625 64.2 0.12 0.10 claims paid and premium written in the 2010 1,777 284.5 0.39 0.30 period 2003-2011 which accounted for 17.32%. 2011 280 15.8 0.06 0.05

TABLE

Gross premium written Share Number of Share Code Group of classes / risks in EUR 000 in % policies issued in % Aircraft Hull - 05.01 Aircraft hull insurance 2,035 100.00 83 100.00 Gross premium 05.02 Hull insurance of other air transport crafts 0 0.00 0 0.00 written and number of policies TOTAL 05 2,035 100.00 83 100.00 issued in 2011

TABLE

Claims paid, Number of Share gross amount Share Code Group of classes / risks claims paid in % in EUR 000 in % Aircraft Hull - 05.01 Aircraft hull insurance 11 100.00 280 100.00 Number and 05.02 Hull insurance of other air transport crafts 0 0.00 0 0.00 amounts of claims paid TOTAL 05 11 100.00 280 100.00 in 2011

54 GRAPH 2,500 1,500 4,000 4,500 5,000 6,000 1,000 2,000 3,500 5,500 3,000 500

0 000 €

Aircraft Hull - Gross premium written and 2003 claims paid

2004

2005

2006

2007

2008

2009

2010

2011

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00 55.00 60.00 %

Gross premium Claims paid, Ratio written in EUR 000 gross amounts in EUR 000

GRAPH 0.30 0.50 0.20 0.40 0.80 0.00 0.60 0.10 0.70

%

Aircraft Hull - 2003 0.42 0.54 Premium

2004 0.42 0.54 share - %

2005 0.49 0.66

2006 0.42 0.57

0.17 2007 0.24 2008 0.17 0.24

2009 0.21 0.29

2010 0.25 0.35

2011 0.17 0.23

Share (%) Total claims Share (%) Non-Life

Aircraft Hull Insurance 55 non-life insurance Year / Number of insured vessels

Year 2003 2004 2005 2006 2007 2008 2009 2010 2011

SHIPS (SEA, LAKE Number 6,698 7,647 8,606 10,611 11,146 12,996 13,412 15,218 15,356 AND RIVER VESSELS) 15 HULL INSURANCE Share (%) Gross premium (06) written in TABLE Year EUR 000 Index Non-Life Total GWP 2003 21,467 133.0 3.38 2.63 2004 17,825 83.0 2.62 2.00 03 2005 22,138 124.2 3.02 2.24 Ships – Hull - 2006 27,314 123.4 3.38 2.48 Gross premium This line of insurance includes different 2007 25,256 92.5 2.85 2.07 kinds of insurance of various sea, lake written and river vessels, ships in construction, for the period 2008 30,261 119.8 3.15 2.32 insurance of platforms for undersea 2003-2011 2009 29,582 97.8 3.18 2.34 exploration and insurance of gas 2010 30,743 103.9 3.37 2.47 platforms. The gross premium of ships 2011 27,594 89.8 3.06 2.24 hull insurance came to €27.6 million which is by 10.25% higher than in 2010. The number of policies issued was 15,356 which is by 0.9% more than in 2010. The ratio of claims paid and premium written in 2011 stood at 47.36% The ratio of claims paid and premium Share (%) written through the period 2003 to 2011 Claims paid, stood at 50.99%. gross amounts Year in EUR 000 Index Non-Life Total claims The biggest share of premium written by TABLE 68.02% derives from insurance of ships, 2003 11,624 138.4 3.10 2.91 boats and yachts in sea transport (which 2004 10,466 90.0 2.64 2.42 is slightly higher than in 2010 when it 2005 9,570 91.4 2.27 2.06 accounted for 67.67%). The total Ships – Hull - 2006 10,201 106.6 2.16 1.93 premium written in 2010 was €18.7 Claims paid 2007 14,450 141.6 2.96 2.51 million which is by 9.78% lower for the period compared to 2009. The total number of 2003-2011 2008 14,541 100.6 2.77 2.35 policies issued rose by 677 vessels i.e. by 2009 23,350 160.6 4.51 3.63 4.93% compared to 2010. The amount of claims paid is €11.7 million, being higher 2010 11,099 47.5 2.46 1.88 by 9.9% in relation to 2010. 2011 13,070 117.8 2.97 2.13 The ratio between claims paid and premium written in 2011 stood at 62.23% (worse than in 2010 when it was 51.48%). The total number of sea vessels in the Croatian fleet on 31th December 2011 was 162 or by 5 vessels less than on 31th December 2010. The gross tonnage

TABLE

Gross premium Number of written Share policies Share Code Group of classes / risks in EUR 000 in % issued in % Ships – Hull - 06.01 Hull insurance of ships and yachts in sea transport 18,769 68.02 14,383 93.66 Gross premium 06.02 Hull insurance of ships and boats in river transport 406 1.47 428 2.79 written and number 06.03 Hull insurance of ships and boats in lake transport 8 0.03 3 0.02 of policies 06.04 Hull insurance of ships in construction 3,886 14.08 54 0.35 issued in 2011 06.05 Hull insurance of platforms 4,441 16.09 8 0.05 06.99 Other vessels (hull) insurance 85 0.31 480 3.13

TOTAL 06 27,594 100.00 15,356 100.00 15Sea, lake and river hull insurance (expression before 2007)

56 30,000 35,000 10,000 20,000 25,000 15,000 5,000

0 000 €

2003

2004 GRAPH

2005 Gross premium written in EUR 000

Claims paid, gross amounts in EUR 000

2006 Ratio Ships – Hull - Gross premium 2007 written and claims paid

2008

2009

2010

2011

20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 %

TABLE

Claims paid, Number of Share gross amount Share Code Group of classes / risks claims paid in % in EUR 000 in % 06.01 Hull insurance of ships and yachts in sea transport 1,340 92.41 11,681 89.38 Ships – Hull - 06.02 Hull insurance of ships and boats in river transport 57 3.93 243 1.86 Number and 06.03 Hull insurance of ships and boats in lake transport 0 0.00 0 0.00 amounts 06.04 Hull insurance of ships in construction 3 0.21 1,095 8.37 of claims paid 06.05 Hull insurance of platforms 0 0.00 0 0.00 in 2011 06.99 Other vessels (hull) insurance 50 3.45 51 0.39

TOTAL 06 1,450 100.00 13,070 100.00 amounted to 1,942,817 and the times of restructuring – attempts of than in 2010 when it was 1.60%). deadweight tonnage was 3,252,757. privatisation are in process with the The gross premium written in insurance During 2010 10 vessels to a gross shipyards '3Maj', 'Split' and 'Trogir', and of platforms stood at €4.4 million which tonnage of 167,442 and deadweight the shipyard 'Kraljevica' is likely to go into was by €211 thousand more thus by tonnage of 281,310 left the fleet, while 5 liquidation. During 2011 no shipbuilding 4.75% higher than in 2010. The premium vessels to a gross tonnage of 154,993 and contracts were signed because the State rise resulted from the circumstance that deadweight tonnage of 265,833 entered did not grant necessary warranties for the gas exploitation platform in the the fleet. the conclusion of the contract on Northern Adriatic Sea owned by the Premium written of insurance of ships in construction. Without adequate company INAGIP was released to construction fell by 23.36% in relation to warranties no ordering party wishes production. In 2011 the platform EDINE 2010 and amounted to €3.9 million which ships to be built because of the was not released to production for which is by €1.2 million less and by this the uncertainty of delivery. reason their premium is still lower share of this insurance class within the The amounts of claims paid in compared to circumstances when gas group decreased to 14.08% (the year shipbuilding insurance increased by one exploitation begins. before it was 16.49%). During 2011 new million euro compared to 2010. vessels were built under contracts The ratio between claims paid and Due to high franchises per insured object concluded in earlier years. The Croatian premium written in shipbuilding there were no claims in this insurance shipbuilding industry goes through hard insurance in 2011 stood at 28.16% (worse class.

Ships Hull Insurance 57 non-life insurance

Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 GOODS IN Export 6,186,6 8,023,5 8,772,6 10,376,3 12,363,9 14,111,7 10,473,8 11,806.9 12,288.8 TRANSIT Import 14,204,0 16,583,2 18,560,4 21,488,3 25,838,8 30,728,6 21,202,6 20,053.9 20,396.9

(07) Share (%) Gross premium written in TABLE Year EUR 000 Index Non-Life Total GWP 2003 8,375 86.4 1.32 1.03 2004 7,961 95.1 1.17 0.89 03 2005 8,657 108.7 1.18 0.88 Goods in transit - 2006 9,633 111.3 1.19 0.88 Gross premium 2007 10,371 107.7 1.17 0.85 During 2011 goods in transit still suffers written under the consequences of the global for the period 2008 12,293 118.5 1.28 0.94 financial crisis which affected the 2003-2011 2009 9,157 74.5 0.98 0.72 Croatian economy as well, especially the 2010 9,008 98.4 0.99 0.72 drop in production affected the gross 2011 8,356 92.8 0.93 0.68 premium. The amount of gross premium written depends directly on the circulation of import, export goods and of goods in the territory of the Republic of Croatia and the parities of buying and selling. Data show that goods are mostly Share bought under CIF parity and sold under (%) Claims paid, FOB parity which negatively affects the gross amounts premium in this insurance line. TABLE Year in EUR 000 Index Non-Life Total claims According to the indicators expressed in 2003 3,963 171.9 1.06 0.99 US dollars the import and export of 2004 2,290 57.8 0.58 0.53 goods was as follows: 2005 2,295 100.2 0.54 0.49 The total export was higher by 4.08% Goods in transit - 2006 3,239 141.1 0.69 0.61 Claims paid and the import higher by 1.7% compared 2007 3,227 99.6 0.66 0.56 to 2010; due to the parity of selling the for the period 2003-2011 2008 5,837 180.9 1.11 0.95 gross premium written of €8.4 million was by €652 thousand or by 7.24% 2009 6,079 104.1 1.17 0.95 lower than the premium written in 2010. 2010 5,731 94.3 1.27 0.97 Claims paid in 2011 amounted to €2.7 2011 2,728 47.6 0.62 0.44 million and were by 52.41% lower than in 2009. The total amount of claims paid in the period 2003 to 2011 was €35.4 million; the gross premium written for the same period was €83.8 million which equals to a ratio of 42.22%.

TABLE

Gross premium Number of written Share policies Share Code Group of classes / risks in EUR 000 in % issued in % Goods in transit - 07.01 Insurance of goods in sea transport 1,677 20.07 2,023 9.65 Gross premium 07.02 Insurance of goods in air transport 179 2.15 1,581 7.54 written and number 07.03 Insurance of goods in land transport 2,800 33.51 12,378 59.02 of policies 07.04 Insurance of goods in storage 0 0.00 3 0.01 issued in 2011 07.99 Other goods in transit insurance 3,700 44.28 4,986 23.78

TOTAL 07 8,356 100.00 20,971 100.00

58 59 Goods in transit - Goods in transit Number and amounts of claims paid in 2011 TABLE GRAPH - Goods in transit premium Gross written and claims paid in % Share 000 € %

15,000 100.00 in EUR 000 Claims paid, gross amount gross

13,500 90.00 in % Share

12,000 80.00 0 0.00 0 0.00 11 0.23 19 0.69 44 0.90 395 14.46 511 10.49 1,195 43.82 4,303 88.38 1,119 41.03 4,869 100.00 2,728 100.00

10,500 70.00 Number of claims paid Goods in Transit 9,000 60.00

7,500 50.00

6,000 40.00

4,500 30.00

3,000 20.00

1,500 10.00

0 0.00 Gross premium written in EUR 000 written in EUR premium Gross amounts in EUR 000 Claims paid, gross Ratio Group of classes / risks of classes Group Insurance of goods in sea transport Insurance of goods in air transport Insurance of goods in land transport Insurance of goods in storage Insurance insurance Other goods in transit TOTAL 07 TOTAL 2003 2004 2005 2006 2007 2008 2009 2010 2011 Code 07.01 07.02 07.03 07.04 07.99 non-life insurance

FIRE INSURANCE AND INSURANCE AGAINST NATURAL FORCES (08) 03

After a constant growth during the past seven years fire insurance and insurance against natural forces recorded a premium drop in 2010 and 2011. The premium fall resulted from the recession in the country which led to an investment fall and closure of existing plants. There has been a reduction in property and investments in new buildings, equipment and Share (%) reserves made by legal entities which Gross premium to a great extent brought to a decline of written in Year EUR 000 Index Non-Life Total GWP gross premium written. TABLE 2003 53,513 106.7 8.43 6.56 These insurance classes are to a great extend purchased by legal persons 2004 55,494 103.7 8.16 6.23 (small, medium-sized and large 2005 59,170 106.6 8.06 5.98 companies) and take the largest share Fire and natural 2006 63,098 106.6 7.80 5.73 forces - 2007 71,626 113.5 8.09 5.87 of gross premium. Gross premium Since this segment of fire insurance written 2008 76,005 106.1 7.91 5.83 shows a great potential for premium for the period 2009 78,726 103.6 8.45 6.22 2003-2011 increase more attention is paid to this 2010 77,168 98.0 8.45 6.20 market segment because of the quality 2011 76,132 98.7 8.43 6.19 of the portfolio (risk dispersion and small exposure to certain risks).

The decline of claims paid in 2010 resulted from the decrease in property Share (%) value and the decrease of the number Claims paid, of policies issued. By this the exposure gross amounts Year in EUR 000 Index Non-Life Total claims to risks increased as well and thus the TABLE 2003 18,784 84.5 5.00 4.71 loss itself. Since these insurance 2004 21,141 112.5 5.33 4.89 classes are subject to the occurrence of great and/or massive loss, i.e. 2005 21,806 103.1 5.16 4.69 Fire and natural exposed not only to fire but to natural 2006 26,953 123.6 5.71 5.10 forces - 2007 24,782 91.9 5.07 4.31 disasters (climate conditions) the Claims paid prediction an increase of total claims for the period 2008 26,211 105.8 4.98 4.24 came true. In 2011 total claims 2003-2011 2009 29,952 114.3 5.78 4.66 increased by almost 24% compared to 2010 26,563 88.7 5.88 4.49 the year before. 2011 32,934 124.0 7.49 5.36

60 40,000 30,000 50,000 60,000 70,000 80,000 10,000 20,000

0 000 €

2003

2004

GRAPH 2005 Gross premium written in EUR 000 2006

Claims paid, 2007 gross amounts in EUR 000 Fire and natural forces - Gross premium 2008 written and claims paid 2009

2010

2011 10.00 11.00 6.00 8.00 4.00 5.00 3.00 9.00 7.00

%

GRAPH 2003 6.56 8.43 2004 6.23 8.16 2005 5.98 8.06 2006 5.73 7.80 Fire and natural forces - 5.87 8.09 2007 Premium 2008 5.83 7.91 share - % Share (%) Total GWP 2009 6.22 8.45 2010 6.20 8.45 Share (%) Non-Life 2011 6.19 8.43 4.50 5.50 6.50 3.50 6.00 4.00 5.00 7.00 7.50

%

GRAPH 2003 4.71 5.00

2004 4.89 5.33

2005 4.69 5.16

2006 5.10 5.71 Fire and natural forces - 2007 4.31 5.07 Shares of 2008 4.24 4.98 gross claims Share (%) Total claims 2009 4.66 5.78 paid - %

2010 4.49 5.88 7.49 Share (%) Non-Life 2011 5.36

Fire Insurance and Insurance against Natural Forces 61 non-life insurance

TABLE Code Group of classes / risks 08.01 Fire insurance and insurance against natural forces outside industry and crafts 08.02 Fire insurance and insurance against natural forces in industry and crafts 08.99 Other insurance against fire and natural forces Fire and natural TOTAL 08 forces - Gross premium written and number of policies issued in 2011

TABLE Code Group of classes / risks 08.01 Fire insurance and insurance against natural forces outside industry and crafts 08.02 Fire insurance and insurance against natural forces in industry and crafts 08.99 Other insurance against fire and natural forces Fire and natural TOTAL 08 forces - Number and amounts of claims paid in 2011

62 A high premium written and a great number of policies issued outside industry and craft result from the economic situation in the Republic of Croatia (because of facility shutdowns

Gross premium and reduction of production the number written Share Number of Share of policies issued decreased). There are in EUR 000 in % policies issued in % Code also approx. 82,000 registered (active) 45,686 60.01 439,303 87.64 08.01 companies in the Republic of Croatia 21,419 28.13 20,039 4.00 08.02 (data obtained from the Croatian Central 9,028 11.86 41,892 8.36 08.99 Bureau of Statistics) of which the majority is not in the industry or craft as it 76,132 100.00 501,234 100.00 can be seen in the table below. Unlike industrial companies which values and number are decreasing, companies outside industry and craft are in relation to their number and values, and despite of the crisis, surging up (opening of warehouses, shopping malls, hotels etc.).

Claims paid, Number of Share gross amount Share claims paid in % in EUR 000 in % Code 20,497 87.36 16,423 49.87 08.01 1,587 6.76 8,272 25.12 08.02 1,379 5.88 8,239 25.02 08.99

23,463 100.00 32,934 100.00

Fire Insurance and Insurance against Natural Forces 63 non-life insurance OTHER DAMAGE TO PROPERTY (09)

03

This class of insurance is featured by a large number of various insurance classes. Oscillations in the premium growth for the quoted period are a consequence of large business deals connected with insurance of industrial facility and buildings in construction. A slight premiums drop in 2011 can be derived from the economic situation which affects all insurance classes. Share As a result of the high equipment (%) Gross premium values machinery breakdown written in insurance has the biggest share in the TABLE Year EUR 000 Index Non-Life Total GWP written premium (26.77%). 2003 74,508 104.8 11.74 9.13 Agricultural insurance lines which 2004 82,018 110.1 12.06 9.20 include crop and livestock insurance 2005 80,967 98.7 11.04 8.19 have also a larger share in the written Other damage 2006 91,879 113.5 11.36 8.35 to property - premium of this insurance class (total 2007 93,213 101.5 10.53 7.64 about 27.28%). Gross premium written 2008 105,375 113.0 10.97 8.09 The years 2003, 2005, 2007, 2008 and for the period 2009 104,066 98.8 11.18 8.22 2003-2011 2009 were exposed to bad weather 2010 102,733 98.7 11.25 8.26 conditions (storms and hail) which 2011 101,682 99.0 11.26 8.27 caused above-average damage. The year 2008 recorded vast damage in crop and plantation insurance which resulted in a leap in claims paid by more than 20%. In 2009 a slight drop of claims paid has been recorded, which Share (%) continued in 2010, partly due to the Claims paid, gross amounts premium fall and decrease of number TABLE Year in EUR 000 Index Non-Life Total claims of insurance policies and partly due to 2003 46,813 110.3 12.47 11.74 no vaster catastrophic damage 2004 47,787 102.1 12.04 11.06 primarily to crops, while in 2011 a 2005 54,832 114.7 12.98 11.80 modest growth of 2.7% was recorded. Other damage 2006 54,350 99.1 11.51 10.28 to property - Machinery breakdown insurance 2007 62,967 115.9 12.88 10.96 makes the highest individual share in Claims paid for the period 2008 75,754 120.3 14.41 12.26 the number and amounts of claims 2003-2011 2009 74,121 97.8 14.31 11.53 paid. It results from outworn industrial 2010 64,815 87.4 14.35 10.96 machines which are still used in industrial factories in the Republic of 2011 66,581 102.7 15.14 10.84 Croatia, and are thus liable to frequent breakdowns.

64 GRAPH 100,000 120,000 20,000 40,000 60,000 80,000 0 000 €

Other damage to property - Gross premium 2003 written and claims paid 2004

2005

2006

2007

2008

2009

2010

2011

Gross premium written in EUR 000

Claims paid, gross amounts in EUR 000

Other Damage to Property 65 non-life insurance

TABLE Code Group of classes / risks 09.01 Machinery breakdown insurance 09.02 Burglary and robbery insurance 09.03 Glass insurance (insurance of glass from breakage) 09.04 Householders insurance Other damage Contract works insurance (insurance of buildings in construction) to property - 09.05 Gross premium 09.06 Erection insurance written and number 09.07 Film industry insurance of policies 09.08 Insurance of goods in mining pits issued in 2011 09.09 Computer insurance 09.10 Insurance of stocks in refrigerated trailer trucks (refrigerated trailer truck stock declaration coverage) 09.11 Crop and plantation insurance 09.12 Live stock insurance 09.99 Other damage to property

TOTAL 09

TABLE Code Group of classes / risks 09.01 Machinery breakdown insurance 09.02 Burglary and robbery insurance 09.03 Glass insurance (insurance of glass from breakage) 09.04 Householders insurance Other damage Contract works insurance (insurance of buildings in construction) to property - 09.05 Number and 09.06 Erection insurance amounts 09.07 Film industry insurance of claims paid 09.08 Insurance of goods in mining pits in 2011 09.09 Computer insurance 09.10 Insurance of stocks in refrigerated trailer trucks (refrigerated trailer truck stock declaration coverage) 09.11 Crop and plantation insurance 09.12 Live stock insurance 09.99 Other damage to property

TOTAL 09

66 Gross premium written Share Number of Share in EUR 000 in % policies issued in % Code 27,219 26.77 29,226 5.04 09.01 8,286 8.15 55,338 9.55 09.02 3,379 3.32 40,861 7.05 09.03 10,909 10.73 353,439 60.97 09.04 4,003 3.94 2,747 0.47 09.05 2,657 2.61 744 0.13 09.06 43 0.04 20 0.00 09.07 0 0.00 0 0.00 09.08 753 0.74 995 0.17 09.09 127 0.12 197 0.03 09.10 14,630 14.39 18,238 3.15 09.11 13,099 12.88 2,818 0.49 09.12 16,576 16.30 75,112 12.96 09.99

101,682 100.00 579,735 100.00

Claims paid, Number of Share gross amount Share claims paid in % in EUR 000 in % Code 30,643 35.74 20,826 31.28 09.01 3,002 3.50 4,088 6.14 09.02 5,944 6.93 1,316 1.98 09.03 10,858 12.66 3,186 4.79 09.04 606 0.71 1,744 2.62 09.05 38 0.04 1,146 1.72 09.06 4 0.00 1 0.00 09.07 0 0.00 0 0.00 09.08 388 0.45 426 0.64 09.09 87 0.10 355 0.53 09.10 2,539 2.96 13,383 20.10 09.11 16,361 19.08 12,022 18.06 09.12 15,276 17.82 8,088 12.15 09.99

85,746 100.00 66,581,178 100.00

Other Damage to Property 67 non-life insurance

A detailed analysis on Motor vehicle owner i.e. user compulsory MOTOR THIRD PARTY third party liability insurance (risk 10.01) is entailed in the publication 'Report on Compulsory Traffic Insurance – with a special review on Motor Third Party Liability Insurance LIABILITY INSURANCE – 2011. (Accessible under www.huo.hr) (Motor TPL insurance) (10) 03

The gross premium written in motor TPL insurance amounted to €394.8 million in 2011 and compared to 2010 was by 1.6% higher. The gross premium written share of this insurance class in non-life gross premium increased by 2.68% in 2011 compared to 2010, while the share in total gross premium written grew by

2.69%. Share (%) The amount of claims paid in this Gross premium written in insurance class in 2011 was by 0.5% TABLE Year EUR 000 Index Non-Life Total GWP lower against 2010 while the number of 2003 263,258 110.0 41.49 32.26 claims paid was by 4.46% lower. 2004 284,021 107.9 41.75 31.86 The premium in compulsory motor 2005 302,122 106.4 41.18 30.56 liability insurance is the largest segment Motor TPL - 2006 329,684 109.1 40.75 29.96 Gross premium in total gross premiums written in 366,022 111.0 41.34 30.02 written 2007 Motor TPL insurance (99.18%) and for the period 2008 393,146 107.4 40.93 30.17 because motor liability insurance is 2003-2011 2009 393,135 100.0 42.22 31.05 mainly compulsory its total share is still 2010 388,752 98.9 42.58 31.26 high – to 43.72% in non-life insurance – 2011 394,823 101.6 43.72 32.10 with an indication of further growth, i.e. to 32.10% within the total gross premium written.

In 2011 the number of policies issued in Share (%) motor-TPL insurance was 1,940,486 Claims paid, (1,926,644 in 2010) which compared to gross amounts TABLE Year in EUR 000 Index Non-Life Total claims 2010 makes a growth of 0.72%. The 2003 173,112 109.8 46.11 43.41 gross premium written increased by 2004 178,526 103.1 44.97 41.33 1.54%, while the average premium per 2005 186,418 104.4 44.14 40.11 policy was by 0.81% higher and Motor TPL - 2006 213,902 114.7 45.30 40.45 accounted for €202 in 2011. Claims paid 2007 212,718 99.4 43.51 37.02 The number of claims paid in 2011 was for the period 2003-2011 2008 219,912 103.4 41.82 35.60 down by 4.46%; the amount of claims 2009 191,387 87.0 36.96 29.76 paid was lower by 0.55%. 2010 161,689 84.5 35.80 27.35 2011 160,808 99.5 36.57 26.17

68 400,000 300,000 100,000 200,000 500,000

0 000 €

2003

2004

GRAPH 2005

2006

2007 Motor TPL - Gross premium written and 2008 claims paid

2009

Gross premium 2010 written in EUR 000

Claims paid, 2011 gross amounts in EUR 000 25.00 35.00 40.00 15.00 45.00 30.00 55.00 50.00 20.00

%

GRAPH 2003 32.26 41.49

2004 31.86 41.75

2005 30.56 41.18

2006 29.96 40.75 Motor TPL - Premium 2007 30.02 41.34 share - % 2008 30.17 40.93 Share (%) Total GWP 2009 31.05 42.22

2010 31.26 42.58 Share (%) Non-Life 2011 32.10 43.72 25.00 35.00 40.00 15.00 45.00 30.00 55.00 50.00 20.00

%

GRAPH 2003 43.41 46.11 2004 41.33 44.97 2005 40.11 44.14 2006 40.45 45.30 Motor TPL - Shares of 2007 37.02 43.51 gross claims 2008 35.60 41.82 paid - % Share (%) Total claims 29.76 2009 36.96 2010 27.35 35.80 Share (%) Non-Life 2011 26.17 36.57

Motor Third Party Liability Insurance 69 non-life insurance

TABLE Code Group of classes / risks 10.01 Motor vehicle owner/user compulsory third party liability insurance 10.02 Motor vehicle owner/user voluntary liability insurance for damages to third party 10.03 Driver liability insurance for goods transported in road transport 10.99 Other types of motor vehicle liability insurance Motor TPL - Gross premium written and number TOTAL 10 of policies issued in 2011

TABLE Code Group of classes / risks 10.01 Motor vehicle owner/user compulsory third party liability insurance 10.02 Motor vehicle owner/user voluntary liability insurance for damages to third party 10.03 Driver liability insurance for goods transported in road transport 10.99 Other types of motor vehicle liability insurance Motor TPL - Number and amounts TOTAL 10 of claims paid in 2011

70 Gross premium written Share Number of Share in EUR 000 in % policies issued in % Code 391,566 99.17 1,940,486 97.31 10.01 697 0.18 47,682 2.39 10.02 2,383 0.60 2,292 0.11 10.03 178 0.05 3,609 0.18 10.99

394,823 100.00 1,994,069 100.00

Claims paid, Number of Share gross amount Share claims paid in % in EUR 000 in % Code 88,565 98.76 158,926 98.83 10.01 34 0.04 254 0.16 10.02 903 1.01 1,010 0.63 10.03 176 0.20 617 0.38 10.99

89,678 100.00 160,808 100.00

Motor Third Party Liability Insurance 71 non-life insurance AIRCRAFT LIABILITY

INSURANCE Share (%) Gross premium (11) written in EUR 000 Index Non-Life Total GWP TABLE Year 2003 300 90.5 0.05 0.04 2004 295 98.3 0.04 0.03 03 2005 151 51.3 0.02 0.02 Aircraft liability - 2006 278 183.5 0.03 0.03 Gross premium 2007 524 189.0 0.06 0.04 The compulsory aircraft liability written insurance premium rose by 12.15% for the period 2008 430 82.1 0.04 0.03 compared to the premium in 2010, 2003-2011 2009 360 83.7 0.04 0.03 resulting from the growth of number of 2010 308 85.4 0.03 0.02 insurance policies from 155 in 2010 to 2011 345 112.2 0.04 0.03 165 in 2011.

The compulsory aircraft liability insurance retained very good results in the period from 2003 to 2011, the total Share of claims paid accounted to €315 (%) Claims paid, thousand and the gross premium gross amounts written accounted to €2.991 million TABLE Year in EUR 000 Index Non-Life Total claims which makes a ratio of 10.53%. 2003 1 8.7 0.00 0.00 2004 4 450.0 0.00 0.00 2005 21 585.2 0.01 0.00 Aircraft liability - 2006 8 36.1 0.00 0.00 Claims paid 42 550.8 0.01 0.01 for the period 2007 2003-2011 2008 7 16.8 0.00 0.00 2009 229 3,243.9 0.04 0.04 2010 3 1.1 0.00 0.00 2011 1 20.6 0.00 0.00

TABLE Gross premium Number of written Share policies Share Code Group of classes / risks in EUR 000 in % issued in % Aircraft liability - 11.01 Aircraft owner/user compulsory liability insurance for damages to third Gross premium parties 284 82.42 155 93.94 written and number 11.02 Aircraft owner/user compulsory liability insurance for all types of of policies liabilities (including liability of carrier for goods transported in air issued in 2011 transport) 61 17.58 10 6.06

TOTAL 11 345 100.00 165 100.00

72 GRAPH 500 550 350 450 50 15 250 300 100 400 200 50

0 000 kn

Aircraft liability - Gross premium written and 2003 claims paid

2004

2005

2006

2007

2008

2009

2010

2011 100.00 -10.00 50.00 90.00 10.00 20.00 30.00 40.00 60.00 70.00 80.00 % 0.00

Gross premium written in EUR 000

Claims paid, gross amounts in EUR 000

Ratio

TABLE Claims paid, gross Number of Share amount Share Code Group of classes / risks claims paid in % in EUR 000 in % 11.01 Aircraft owner/user compulsory liability insurance for damages to Aircraft liability - third parties 0 - 0.06 80.21 Number and 11.02 Aircraft owner/user compulsory liability insurance for all types of amounts of claims liabilities (including liability of carrier for goods transported in air paid in 2011 transport) 0 - 0.01 19.79

TOTAL 11 0 - 0.07 100.00

Aircraft Liability Insurance 73 non-life insurance Year 2003 2004 2005 2006 2007 2008 2009 2010 2011

Number of ships 151 148 156 156 172 171 186 167 133 MARINE Gross tonnage 1,418,431 1,424,672 1,490,656 1,626,238 1,744,282 1,882,096 1,874,217 1,936,791 1,848,481 LIABILITY

INSURANCE Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 Number of (12) policies issued 12,242 12,636 14,320 17,423 20,196 24,105 26,522 29,306 32,241 03

The gross premium in this class of insurance fell during the year 2011 by 14.5% and compared to the year before generated €4.926 million being less by €833 thousand. The major part of the premium in this class of insurance, 65.37%, falls to marine liability insurance i.e. the Protecting & Indemnity insurance (P&I) and 29.77% falls to motor yacht owner compulsory liability insurance. The P&I Share (%) Gross premium insurance compared to other written in insurance lines in this class fell by 7.64 TABLE Year EUR 000 Index Non-Life Total GWP index points or by an absolute amount 2003 3,462 83.0 0.55 0.42 of €984.6 thousand. 2004 3,275 94.6 0.48 0.37 The number of ships covered by P&I 2005 3,858 117.8 0.53 0.39 insurance and the gross tonnage in the Marine liability - 2006 4,335 112.4 0.54 0.39 period of observation was as follows: Gross premium 2007 written 5,219 120.4 0.59 0.43 for the period 2008 5,165 99.0 0.54 0.40 The number of ships decreased in 2003-2011 2009 5,494 106.4 0.59 0.43 relation to last year, however, the gross 2010 tonnage decreased by 88,310 which 5,759 104.8 0.63 0.46 along with the very good results of ship 2011 4,926 85.5 0.55 0.40 owners resulted in a premium decrease of 14.5% compared to 2010.

The number of marine liability insurance policies shows an increase of 10.01% compared to 2010 which Share (%) mostly refers to compulsory sea Claims paid, gross amounts ship/yacht owner liability insurance TABLE Year in EUR 000 Index Non-Life Total claims (22,413 in 2010 compared to 25,330 2003 1,051 28.3 0.28 0.26 in 2011) or a growth by 13.01%. 2004 802 76.2 0.20 0.19 The number of claims paid in 2011 was 111 and by 17.22% lower compared to 2005 1,347 168.1 0.32 0.29 2010, while the total amount of claims Marine liability - 2006 786 58.3 0.17 0.15 Claims paid paid was lower by 1.3% compared to for the period 2007 895 113.9 0.18 0.16 2010. 2003-2011 2008 1,668 186.4 0.32 0.27 The total amount of claims paid in the 2009 793 47.6 0.15 0.12 period 2003 to 2011 amounted to €9.2 2010 953 120.2 0.21 0.16 million; the gross premium written for the same period accounted for €41.5 2011 942 98.8 0.21 0.15 million which equals to a ratio of 22.25%.

74 GRAPH 10,000 3,000 7,000 8,000 9,000 2,000 6,000 4,000 5,000 1,000

0 000 €

Marine liability - Gross premium written and 2003 claims paid

2004

2005

2006

2007

2008

2009

2010

2011

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00 %

Gross premium written in EUR 000

Claims paid, gross amounts in EUR 000

Ratio

Marine Liability Insurance 75 non-life insurance

TABLE Code Group of classes / risks 12.01 Sea ship owner / user liability insurance (including liability of carrier for goods transported 12.02 Lake and river vessel owner / user liability insurance (including liability of carrier for goods transported) Marine liability - Motor yacht owner / user compulsory liability insurance for damages to third parties Gross premium 12.03 written and number 12.99 Other types of liability insurance for ship operators of policies issued in 2011 TOTAL 12

TABLE Code Group of classes / risks 12.01 Sea ship owner / user liability insurance (including liability of carrier for goods transported 12.02 Lake and river vessel owner / user liability insurance (including liability of carrier for goods transported) Marine liability - Motor yacht owner / user compulsory liability insurance for damages to third parties Number and 12.03 amounts 12.99 Other types of liability insurance for ship operators of claims paid in 2011 TOTAL 12

76 Gross premium written Share Number of Share in EUR 000 in % policies issued in % Code 12.01 3,220 65.37 4,804 14.90 12.02 18 0.37 54 0.17 1,466 29.77 25,330 78.56 12.03 221 4.48 2,053 6.37 12.99

4,926 100.00 32,241 100.00

Claims paid, Number of Share gross amount Share claims paid in % in EUR 000 in % Code 12.01 100 90.09 123 97.30 12.02 0 0.00 0 0.00 3 2.70 0 0.24 12.03 8 7.21 3 2.46 12.99

111 100.00 127 100.00

Marine Liability Insurance 77 non-life insurance GENERAL LIABILITY (13)

03

This insurance line refers to the groups of classes under 13.13 professional indemnity for freight-forwarders, 13.14 marine-owner or user liability insurance, 13.15 ship repairer liability insurance which total premium was €2.115 million and accounted in the whole liability insurance line for 5.4%. The total premium grew by 9.78% or €188.5 thousand compared to 2010. Share (%) Gross premium In total claims these groups of classes written in Year EUR 000 Index Non-Life Total GWP account for €423 thousand or 8.5% of TABLE 2003 20,441 111.5 3.22 2.50 total claims in this group of classes. 2004 23,447 114.7 3.45 2.63 Total claims were by 1,591,000 less compared to 2010 representing a 2005 26,078 111.2 3.55 2.64 General liability - 2006 30,191 115.8 3.73 2.74 decrease of 33.63% Gross premium written 2007 33,748 111.8 3.81 2.77 The ratio of premium written and for the period 2008 37,387 110.8 3.89 2.87 2003-2011 claims paid in 2011 was 19.97%. 2009 36,224 96.9 3.89 2.86 2010 35,821 98.9 3.92 2.88 2011 38,921 108.7 4.31 3.16

Share (%) Claims paid, gross amounts TABLE Year in EUR 000 Index Non-Life Total claims 2003 9,734 79.2 2.59 2.44 2004 9,772 100.4 2.46 2.26 2005 12,635 129.3 2.99 2.72 General liability - 2006 12,710 100.6 2.69 2.40 Claims paid 2007 13,040 102.6 2.67 2.27 for the period 2003-2011 2008 16,074 123.3 3.06 2.60 2009 14,270 88.8 2.76 2.22 2010 14,962 104.8 3.31 2.53 2011 14,592 97.5 3.32 2.37

78 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 5,000

0 000 €

2003

2004

GRAPH 2005

2006

General liability - 2007 Gross premium written and 2008 claims paid

2009 Gross premium written in EUR 000 2010

Claims paid, 2011 gross amounts in EUR 000 1.50 2.50 4.50 0.50 3.50 1.00 2.00 4.00 0.00 3.00

%

GRAPH 2003 2.50 3.22

2004 2.63 3.45

2005 2.64 3.55

2006 2.74 3.73 General liability - Premium 2007 2.77 3.81 share - % 2008 2.87 3.89 Share (%) Total GWP 2009 2.86 3.89

2010 2.88 3.92 Share (%) Non-Life 2011 3.16 4.31 1.50 2.50 2.00 3.00 3.25 1.25 2.25 3.50 1.75 2.75

%

GRAPH 2003 2.44 2.59

2004 2.26 2.46

2.99 2005 2.72 2006 2.40 2.69 General liability - Shares of 2007 2.27 2.67 gross claims 2008 2.60 3.06 paid - % Share (%) Total claims 2009 2.22 2.76

2010 2.53 3.31 Share (%) Non-Life 2011 2. 37 3.32

General Liability 79 non-life insurance

TABLE Code Group of classes / risks 13.01 Insurance of contractual liability for building contractors 13.02 Insurance of contractual liability for assembling contractors 13.03 Film makers liability insurance 13.04 Producer liability insurance for products General liability - Rail transport liability insurance Gross premium 13.05 written and number 13.06 Insurance of guarantee for producers, sellers and suppliers of policies 13.07 General liability insurance issued in 2011 13.08 Liability insurance for project engineering companies and other comp. for damages incurred due to incorrect tech documentation 13.09 Liability insurance for project engineering companies and other companies 13.10 Professional indemnity for lawyers 13.11 Professional indemnity for public notaries 13.12 Professional indemnity for auditing companies 13.13 Professional indemnity for freight-forwarders 13.14 Marine-owner or user liability insurance 13.15 Ship repairer liability insurance 13.16 Liability insurance for security agents and detectives 13.17 Real estate management liability insurance 13.18 Liability insurance for doctors, dentists and pharmacists 13.19 Bankruptcy trustee liability insurance 13.99 Other types of liability insurance

TOTAL 13

TABLE Code Group of classes / risks 13.01 Insurance of contractual liability for building contractors 13.02 Insurance of contractual liability for assembling contractors 13.03 Film makers liability insurance 13.04 Producer liability insurance for products General liability - Rail transport liability insurance Number and 13.05 amounts 13.06 Insurance of guarantee for producers, sellers and suppliers of claims paid 13.07 General liability insurance in 2011 13.08 Liability insurance for project engineering companies and other comp. for damages incurred due to incorrect tech documentation 13.09 Liability insurance for project engineering companies and other companies 13.10 Professional indemnity for lawyers 13.11 Professional indemnity for public notaries 13.12 Professional indemnity for auditing companies 13.13 Professional indemnity for freight-forwarders 13.14 Marine-owner or user liability insurance 13.15 Ship repairer liability insurance 13.16 Liability insurance for security agents and detectives 13.17 Real estate management liability insurance 13.18 Liability insurance for doctors, dentists and pharmacists 13.19 Bankruptcy trustee liability insurance 13.99 Other types of liability insurance

TOTAL 13

80 Gross premium written Share Number of Share in EUR 000 in % policies issued in % Code 147 0.38 236 0.22 13.01 17 0.04 41 0.04 13.02 0 0.00 1 0.00 13.03 626 1.61 246 0.23 13.04 0 0.00 0 0.00 13.05 1,122 2.88 42 0.04 13.06 25,871 66.47 89,156 84.12 13.07 0 0.00 0 0.00 13.08 2 0.00 19 0.02 13.09 985 2.53 4,066 3.84 13.10 313 0.80 629 0.59 13.11 451 1.16 273 0.26 13.12 341 0.88 57 0.05 13.13 912 2.34 163 0.15 13.14 862 2.21 84 0.08 13.15 484 1.24 90 0.08 13.16 52 0.13 433 0.41 13.17 1,859 4.78 3,005 2.84 13.18 647 1.66 204 0.19 13.19 4,230 10.87 7,246 6.84 13.99

38,921 100.00 105,991 100.00

Claims paid, Number of Share gross amount Share claims paid in % in EUR 000in % Code 45 0.41 187 1.28 13.01 2 0.02 1 0.01 13.02 0 0.00 0 0.00 13.03 24 0.22 271 1.86 13.04 0 0.00 0 0.00 13.05 42 0.38 226 1.55 13.06 10,214 93.14 11,813 80.95 13.07 0 0.00 0 0.00 13.08 0 0.00 0 0.00 13.09 13 0.12 32 0.22 13.10 0 0.00 1 0.01 13.11 0 0.00 0 0.00 13.12 63 0.57 88 0.60 13.13 92 0.84 159 1.09 13.14 10 0.09 176 1.21 13.15 18 0.16 107 0.73 13.16 4 0.04 6 0.04 13.17 26 0.24 484 3.32 13.18 1 0.01 6 0.04 13.19 412 3.76 1,034 7.09 13.99

10,966 100.00 14,592 100.00

General Liability 81 non-life insurance CREDIT INSURANCE (14)

03

Credit activities of commercial banks are still modest. Banks are very cautious with their offers because of the growth of weak investment shares and problems owning banks are facing in their own countries, while credit user especially the people refrain from debt accumulation in times of high unemployment and economic uncertainty, difficulty in debt servicing Share due to exposure to currency and interest (%) Gross premium risks. written in EUR 000 Total GWP The money stock in loans compared to TABLE Year Index Non-Life 2010 rose by a total of 6.1%. Loans 2003 8,729 120.5 1.38 1.07 granted to natural persons in 2011 were 2004 10,085 115.5 1.48 1.13 higher by 0.9% compared to 2010, and 2005 12,424 123.2 1.69 1.26 loans granted to legal persons grew by Credit - 2006 13,253 106.7 1.64 1.20 9.8%. Gross premium The total gross premium written was by written 2007 14,619 110.3 1.65 1.20 1.791 million higher in 2011 or by 11.39% for the period 2008 16,993 116.2 1.77 1.30 compared to 2010. This growth resulted 2003-2011 2009 10,942 64.4 1.18 0.86 from the growth of export claims 2010 15,707 143.6 1.72 1.26 insurance (higher premium by €529 2011 17,498 111.4 1.94 1.42 thousand or a growth of 184.4% compared to 2010), housing credits (higher premium by €460 thousand or a growth of 192.8% compared to 2010) and further growth of credit insurance (growth of 7.5% compared to 2010). Share The total of claims paid amounts to (%) Claims paid, €13.886 million in 2011 or by 8% lower in gross amounts relation to 2010 (€15.108 million in TABLE Year in EUR 000 Index Non-Life Total claims 2010), the number of claims decreased 2003 7,537 161.8 2.01 1.89 as well and accounts for 4,064 or 16.74% 2004 10,746 142.6 2.71 2.49 less compared to 2010 (4,874 in 2010). 2005 12,777 118.9 3.03 2.75 The ratio between claims paid and premium written in 2011 was 79.34%, Credit - 2006 20,084 157.2 4.25 3.80 Claims paid 2007 16,724 83.3 3.42 2.91 which is a far better result than in 2010 for the period and 2009 when it accounted for 96.10% 2003-2011 2008 8,133 48.6 1.55 1.32 and 133.3% respectively. The 2009 14,580 179.3 2.82 2.27 improvement of results is the growth of 2010 15,108 103.6 3.35 2.56 premium written and the decrease of claims paid in relation to the previous 2011 13,886 91.9 3.16 2.26 years. The ratio between claims paid and premium written in the period 2003- 2011 was 99.34%.

82 GRAPH 12,500 20,000 17,500 10,000 15,000 5,000 7,500 2,500

0 000 €

Credit - Gross premium 2003 written and claims paid

2004

2005

2006

2007

2008

2009

2010

2011 Gross premium written in EUR 000

Claims paid, gross amounts in EUR 000 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 % Ratio 1.30 1.50 2.30 2.50 4.30 4.50 0.50 3.30 3.50 1.10 1.90 2.10 4.10 2.90 0.90 1.70 3.10 3.90 2.70 0.70 3.70

%

GRAPH 2003 1.07 1.38 1.89 2.01

2004 1.13 1.48 2.71 2.49 2005 1.26 1.69 2.75 3.03

2006 1.20 1.64 3.80 4.25 Credit - 1.65 2.91 Premium 2007 1.20 3.42 1.77 share - % 1.32 1.55 2008 1.30 and 2009 0.86 1.18 2.82 share of claims 2.27 paid, gross amounts 2010 1.26 1.72 2.56 3.35

2011 1.42 1.94 2.26 3.16

Share (%) Non-Life Share (%) Total GWP

Share (%) Non-Life Share (%) Total claims

Credit Insurance 83 non-life insurance

TABLE Code Group of classes / risks 14.01 Export claims insurance 14.02 Other claims insurance 14.03 Housing credits

Credit - TOTAL 14 Gross premium written for the period 2003-2011

TABLE Code Group of classes / risks 14.01 Export claims insurance 14.02 Other claims insurance 14.03 Housing credits Credit - TOTAL 14 Number and amounts of claims paid in 2011

84 Gross premium written Share Number of Share in EUR 000 in % policies issued in % Code 816 4.66 780 1.94 14.01 15,983 91.34 38,706 96.36 14.02 699 4.00 684 1.70 14.03

17,498 100.00 40,170 100.00

Claims paid, Number of Share gross amount Share claims paid in % in EUR 000in % Code 2 0.05 151 1.08 14.01 4,035 99.29 12,584 90.63 14.02 27 0.66 1,151 8.29 14.03

4,064 100.00 13,886 100.00

Credit Insurance 85 non-life insurance SURETYSHIP INSURANCE

(15) Share (%) Gross premium written in TABLE Year EUR 000 Index Non-Life Total GWP 2003 139 93.7 0.02 0.02 2004 272 195.8 0.04 0.03 03 2005 227 83.4 0.03 0.02 Suretyship - 2006 340 150.2 0.04 0.03 Gross premium During 2011 and for the second year in written 2007 228 67.1 0.03 0.02 a row this class of insurance for the period 2008 544 238.0 0.06 0.04 considerately increases its premium 2003-2011 2009 321 59.1 0.03 0.03 written which accounted for €1.058 2010 616 191.8 0.07 0.05 million, a growth by 71.8% of premium 2011 1,058 171.8 0.12 0.09 written in 2010. Suretyship insurance rose by 59.2% and guarantee insurance by 78.4%. The total number of policies issued grew by 59 (from 509 in 2010 to 563 in 2011). The number of suretyship Share insurance policies issued rose by (%) Claims paid, 12.7% and the number of guarantee gross amounts Year in EUR 000 Index Non-Life Total claims insurance policies issued by 3.6%. TABLE 2003 93 64.5 0.02 0.02 The total amount of claims paid in 2011 2004 258 279.2 0.07 0.06 accounted for €41 thousand and is by 2005 -3 - 0.00 0.00 €909 thousand lower than in 2010. Suretyship - 2006 83 - 0.02 0.02 The ratio between claims paid and Claims paid 2007 28 34.2 0.01 0.00 premium written in 2011 was 3.91%. for the period 2003-2011 2008 -16 - 0.00 0.00 The ratio between claims paid and 2009 223 - 0.04 0.03 premium written during the period 2010 950 425.6 0.21 0.16 2003-2011 accounted for 44.29%. 2011 41 4.4 0.01 0.01

TABLE

Gross premium written Share Number of Share Code Group of classes / risks in EUR 000 in % policies issued in % Suretyship - 15.01 Surety insurance 335 31.67 505 89.70 Gross premium 15.02 Guarantee insurance 723 68.33 58 10.30 written and number of policies TOTAL 15 1,058 100.00 563 100.00 issued in 2011

TABLE

Claims paid, Number of Share gross amount Share Code Group of classes / risks claims paid in % in EUR 000 in % Suretyship - 15.01 Surety insurance 10 9.35 -224 -72.47 Number and 15.02 Guarantee insurance 97 90.65 532 172.47 amounts of claims paid TOTAL 15 107 100.00 308 100.00 in 2011

86 GRAPH 1.000 -100 100 200 300 400 500 600 700 800 900 0

000 €

Suretyship - Gross premium written and 2003 claims paid

2004

2005

2006

2007

2008

2009

2010

2011

-10.00 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00 200.00 %

Gross premium written in EUR 000

Claims paid, gross amounts in EUR 000

Ratio

Suretyship Insurance 87 non-life insurance MISCELLANEOUS FINANCIAL LOSSES (16) 03

The gross premium written of this insurance class recorded in 2011 against 2010 a growth rate of 8.5%, and to its biggest part this growth resulted from the growth of value of insurance policies (income growth with medium sized and big companies). The number of policies issued reflected a decline of 2.3%. Although this class of insurance

is broadly represented in the Share (%) international market, its share in the Gross premium written in Croatian insurance market is still very TABLE Year EUR 000 Index Non-Life Total GWP small. This insurance class is 2003 5,442 118.6 0.86 0.67 predominantly covered by All Risk 2004 5,159 94.8 0.76 0.58 policies (loss from business stoppage 2005 6,221 120.6 0.85 0.63 due to fire, machinery breakdown and Financial loss - 2006 6,560 105.5 0.81 0.60 others). Gross premium written 2007 7,898 120.4 0.89 0.65 The gross premium written share of for the period 2008 8,346 105.7 0.87 0.64 this insurance class in non-life gross 2003-2011 2009 9,292 111.3 1.00 0.73 premium written in 2011 was 1.23% 2010 10,252 110.3 1.12 0.82 while its share in total gross premium 2011 11,123 108.5 1.23 0.90 written stood at 0.9%.

The 35.96% drop of the amount of claims paid in 2011 against 2010 was

interrupted by the constant three year Share (%) growth of the same and because of the Claims paid, continuous premium growth since gross amounts TABLE Year in EUR 000 Index Non-Life Total claims 2005 reflected in the share of claims 2003 1,186 67.8 0.32 0.30 paid in the gross premium written 2004 2,014 169.9 0.51 0.47 which was by 40.98% lower compared 2005 2,750 136.5 0.65 0.59 to 2010 and amounted to 14.85%. Financial loss - 2006 2,476 90.0 0.52 0.47 Claims paid 2007 1,846 74.6 0.38 0.32 for the period 2003-2011 2008 2,110 114.3 0.40 0.34 2009 2,480 117.5 0.48 0.39 2010 2,579 104.0 0.57 0.44 2011 1,652 64.0 0.38 0.27

88 10,500 12,000 13,500 1,500 4,500 6,000 7,500 9,000 3,000 0 0 000 €

2003

2004

GRAPH 2005

2006

2007 Financial loss - Gross premium 2008 written and claims paid

2009

Gross premium written 2010 in EUR 000

Claims paid, gross amounts 2011 in EUR 000 0.30 0.50 0.40 0.80 1.00 1.10 1.20 1.20 0.60 0.90 0.70

%

GRAPH 2003 0.67 0.86 2004 0.58 0.76 2005 0.63 0.85 2006 0.60 0.81 Financial loss - Premium 0.65 0.89 2007 share - % 2008 0.64 0.87 Share (%) Total GWP 2009 0.73 1.00 2010 0.82 1.12 Share (%) Non-Life 2011 0.90 1.23 0.30 0.50 0.20 0.40 0.80 1.00 0.00 0.60 0.10 0.90 0.70

%

GRAPH 2003 0.30 0.32 2004 0.51 0.47 2005 0.59 0.65 2006 0.47 Financial loss - 0.52 Shares of 0.32 0.38 2007 gross claims 2008 0.34 0.40 paid - % Share (%) Total claims 2009 0.39 0.48 2010 0.44 0.57 Share (%) Non-Life 2011 0.27 0.38

Miscellaneous Financial Losses 89 non-life insurance

TABLE Code Group of classes / risks 16.01 Insurance of financial losses from work stoppage due to fire and other dangers 16.02 Insurance of financial losses from work stoppage due to machinery breakages 16.03 Weather insurance 16.04 Insurance of damages from purchases of false foreign currencies Financial loss - 16.05 Insurance of perils of passage cancellation Gross premium written and number 16.99 Other types of insurance of financial losses of policies issued in 2011 TOTAL 16

TABLE Code Group of classes / risks 16.01 Insurance of financial losses from work stoppage due to fire and other dangers 16.02 Insurance of financial losses from work stoppage due to machinery breakages 16.03 Weather insurance 16.04 Insurance of damages from purchases of false foreign currencies Financial loss - 16.05 Insurance of perils of passage cancellation Number and amounts 16.99 Other types of insurance of financial losses of claims paid in 2011 TOTAL 16

90 Gross premium written Share Number of Share in EUR 000 in % policies issued in % Code 4,602 41.37 1,544 5.38 16.01 162 1.46 17 0.06 16.02 8 0.07 3 0.01 16.03 103 0.92 60 0.21 16.04 591 5.32 23,441 81.67 16.05 5,658 50.87 3,637 12.67 16.99

11,123 100.00 28,702 100.00

Claims paid, Number of Share gross amount Share claims paid in % in EUR 000in % Code 5 0.29 62 3.75 16.01 4 0.23 1 0.09 16.02 0 0.00 0 0.00 16.03 188 11.03 15 0.89 16.04 821 48.18 559 33.87 16.05 686 40.26 1,014 61.40 16.99

1,704 100.00 1,652 100.00

Miscellaneous Financial Losses 91 non-life insurance LEGAL EXPENSES

(17) Share (%) Gross premium written in TABLE Year EUR 000 Index Non-Life Total GWP 2003 98 - 0.02 0.01 2004 254 260.7 0.04 0.03 03 2005 417 163.9 0.06 0.04 Legal expenses - 2006 385 92.4 0.05 0.04 Gross premium Legal expenses insurance covers written 2007 498 129.3 0.06 0.04 attorney's fees and other court costs. for the period 2008 569 114.2 0.06 0.04 This insurance class is poorly 2003-2011 2009 571 100.4 0.06 0.05 represented in the Croatian insurance 2010 341 59.6 0.04 0.03 market although it has existed for the 2011 392 114.9 0.04 0.03 past nine years.

The gross premium written of this insurance class in 2011 against 2010 grew by 14.9%. Legal expenses insurance recorded the same share in Share (%) non-life as in the previous year by Claims paid, gross amounts 0.04% and equals to the share in total TABLE Year in EUR 000 Index Non-Life Total claims gross premium written at 0.03%. 2003 0 - 0.00 0.00 2004 0 - 0.00 0.00 In 2011, compared to 2010 the amount 2005 1 - 0.00 0.00 of claims paid was by 17.7% lower. This Legal expenses - 2006 4 750.0 0.00 0.00 insurance class follows a trend of Claims paid 2007 8 208.1 0.00 0.00 remarkably good results in the ratio for the period between claims paid and premium 2003-2011 2008 15 179.4 0.00 0.00 written in the period 2003 to 2011 and 2009 6 37.4 0.00 0.00 stood at 2.39%. 2010 28 494.5 0.01 0.00 2011 23 82.1 0.01 0.00

TABLE

Gross premium written Share Number of Share Code Group of classes / risks in EUR 000 in % policies issued in % Legal expenses - 17.01 Legal costs and expenses insurance 392 100.00 4,935 100.00 Gross premium written and number TOTAL 17 392 100.00 4,935 100.00 of policies issued in 2011

TABLE

Claims paid, Number of Share gross amount Share Code Group of classes / risks claims paid in % in EUR 000 in % Legal expenses - 17.01 Legal costs and expenses insurance 3 100.00 23 100.00 Number and amounts TOTAL 17 3 100.00 23 100.00 of claims paid in 2011

92 GRAPH 200 300 400 500 600 100

0 000 €

Legal expenses Gross premium written and 2003 claims paid

2004

2005

2006

2007

2008

2009

2010

2011

Gross premium Claims paid, written in EUR 000 gross amounts in EUR 000

GRAPH 0.04 0.00 0.06 0.07 0.01 0.05 0.02 0.03 0.08

%

2003 0.01 0.02 Legal expenses Premium 2004 0.04 0.03 share - % 2005 0.04 0.06

2006 0.04 0.05

2007 0.04 0.06

2008 0.04 0.06 Share (%) Total claims 2009 0.05 0.06

2010 0.03 0.04 Share (%) Non-Life 2011 0.03 0.04

Legal Expenses 93 non-life insurance TRAVEL INSURANCE16 (18)

03

Travel insurance covers risks that result from travel while away from the place of residence and comprises: tourist insurance, travel health insurance, travel assistance insurance and insurance of other tourist risks. Although this insurance has been offered for a longer time its share in a nine-year period is insignificant. In 2007 it recorded a considerate leap of Share (%) the premium written share in the total Gross premium written in insurance portfolio which partly TABLE Year EUR 000 Index Non-Life Total GWP resulted from stricter regulations in 2003 301 126.3 0.05 0.04 tourist business, while in 2008 the 2004 628 209.0 0.09 0.07 gross premium written rose by 10.4%, 2005 937 149.2 0.13 0.09 in 2009 by 6.4% and in 2010 by more Travel - 2006 1,149 122.6 0.14 0.10 Gross premium significant 19.2% while the growth in 2007 written 4,335 377.3 0.49 0.36 2011 stood at 3.5%. for the period 2008 4,784 110.4 0.50 0.37 Within travel insurance the most 2003-2011 2009 5,089 106.4 0.55 0.40 represented group of this insurance 2010 6,065 119.2 0.66 0.49 class is travel health insurance with a 2011 6,277 103.5 0.70 0.51 85.80% share in premium written and a 88.37% share in claims paid.

Share (%) Claims paid, gross amounts TABLE Year in EUR 000 Index Non-Life Total claims 2003 200 116.1 0.05 0.05 2004 319 159.4 0.08 0.07 2005 429 134.7 0.10 0.09 Travel - 2006 405 94.3 0.09 0.08 Claims paid 2007 880 217.3 0.18 0.15 for the period 2003-2011 2008 1,087 123.5 0.21 0.18 2009 1,501 138.1 0.29 0.23 2010 1,077 71.8 0.24 0.18 2011 1,295 120.2 0.29 0.21

16Tourist Assistance (term before 2007)

94 GRAPH 10,000 3,000 7,000 8,000 9,000 2,000 6,000 4,000 5,000 1,000

0 000 €

Travel - Gross premium written and 2003 claims paid

2004

2005

2006

2007

2008

2009

2010

2011

Gross premium Claims paid, written in EUR 000 gross amounts in EUR 000

GRAPH 0.30 0.50 0.20 0.40 0.80 0.00 0.60 0.10 0.70

%

0.04 0.05 2003 Travel - Premium 2004 0.07 0.09 share - % 2005 0.09 0.13 0.14 2006 0.10

2007 0.49 0.36 2008 0.37 0.50 Share (%) Total claims 2009 0.40 0.55

2010 0.49 0.66 Share (%) Non-Life 2011 0.51 0.70

Travel Insurance 95 non-life insurance

TABLE Code Group of classes / risks 18.01 Tourist insurance 18.03 Travel health insurance 18.04 Travel insurance and assistance while away from domicile or place of residence 18.99 Insurance of other tourist risks Travel - Gross premium written and number TOTAL 18 of policies issued in 2011

TABLE Code Group of classes / risks 18.01 Tourist insurance 18.03 Travel health insurance 18.04 Travel insurance and assistance while away from domicile or place of residence 18.99 Insurance of other tourist risks Travel - Number and amounts TOTAL 18 of claims paid in 2011

96 Gross premium written Share Number of Share in EUR 000 in % policies issued in % Code 148 2.36 10,382 6.80 18.01 5,386 85.80 127,342 83.45 18.03 162 2.58 11,342 7.43 18.04 581 9.25 3,536 2.32 18.99

6,277 100.00 152,602 100.00

Claims paid, Number of Share gross amount Share claims paid in % in EUR 000in % Code 56 2.04 14 1.04 18.01 2,423 88.37 1,251 96.62 18.03 232 8.46 23 1.77 18.04 31 1.13 7 0.56 18.99

2,742 100.00 1,295 100.00

Travel Insurance 97

LIFE INSURANCE17 (19-25)

17 Data for the period 2003-2006 – source Croatian Financial Services Supervisory Agency; Data for period 2007-2011 delivered by insurance companies through the web application HUO_Statistika 120,000 160,000 200,000 240,000 280,000 320,000 360,000 400,000 440,000 40,000 80,000 Life Insurance 0 000 €

2003

(19-25) 2004

GRAPH 2005 04 2006 Life - 2007 Premiums and In 2011 the total gross premium gross claims written in life insurance amounted to 2008 paid (in EUR 000) €327 million. Compared to 2010 premium written came down by 1.1%. 2009 Thus the falling trend, which 2010 Claims paid, commenced in 2009 after a stable gross amounts in EUR 000 growth, continues. The global financial 2011 Gross premium crisis has directly affected the Croatian written in EUR 000 Life insurance market. A fall can be 1 1 1 1 1 1 1 12 0 4 6 7 1 3 5 noticed in the demand for life 9 0 0 0 0 0 0 0 0 0 ...... 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 insurance products in view of the 0 % production of new insurance lines, and Gross premium Share in written in Total GWP Year EUR 000 Index (%) the pressure on the existing insurer’s TABLE GRAPH portfolio through non-payments, 2003 181,591 117.1 22.25 2003 109.2 117.1 150.1 surrender or commutation. Besides, 2004 211,108 116.3 23.68 2004 116.3 the life insurance premium share in 121.3 2005 255,006 120.8 25.79 2005 120.8 total insurance market portfolio 133.6 Life - 2006 291,230 114.2 26.47 2006 114.2 Life – remained almost the same as in 2010 Gross premium Premium growth 2007 333,962 114.7 27.39 2007 114.7 151.2 that is at 26.59%. written for the and gross claims period 2003-2011 2008 342,441 102.5 26.28 2008 102.5 paid - index 107.2 136.4 Share (%) Total claims With a view to insurance groups and 2009 334,760 97.8 26.44 2009 97.8 111.5 classes a considerable premium fall 2010 330,591 98.8 26.58 2010 98.8 125.1 suffered endowment assurance by 2011 327,038 98.9 26.59 2011 98.9 Share (%) Non-Life 1.6%. Although the percentage of decrease is not considerate it vastly affected the drop of life gross premium since endowment assurance makes 72.8% of life gross premium that is €238 million. The growth rate of Life Claims paid, Share in 86.08 % annuities was considerable by 26.4% gross amounts Total claims compared to 2010 which might TABLE Year in EUR 000 Index (%) GRAPH indicate a higher awareness of 2003 23,276 109.2 5.84 0.37 % Annuity insureds of the need for retirement 2004 34,939 150.1 8.09

savings although the absolute amount 2005 42,389 121.3 9.12 Supplementary insurance linked of this premiums is still very small and Life - 2006 56,637 133.6 10.71 6.44 % with life assurance policies Life – Claims paid for the Premium amounts to €1.2 million or merely 2007 85,637 151.2 14.90 period 2003-2011 structure in 2011 0.37% of life gross premium. All other 2008 91,818 107.2 14.87 0.37 % Marriage and birth assurance life insurance lines recorded a slight 2009 125,266 136.4 19.48 fall. 2010 139,687 111.5 23.62 2011 174,688 125.1 28.43 6.74 % Unit linked

100 Life Insurance 101 120,000 160,000 200,000 240,000 280,000 320,000 360,000 400,000 440,000 40,000 80,000

0 000 €

2003

2004

GRAPH 2005

2006

Life - 2007 Premiums and gross claims 2008 paid (in EUR 000)

2009

Claims paid, 2010 gross amounts in EUR 000

2011 Gross premium written in EUR 000 110.00 100.00 140.00 160.00 170.00 130.00 150.00 120.00 90.00

%

GRAPH 2003 109.2 117.1 150.1 2004 116.3 121.3 2005 120.8 133.6 2006 114.2 Life – Premium growth 2007 114.7 151.2 and gross claims 2008 102.5 paid - index 107.2 136.4 2009 97.8 Share (%) Total claims 111.5 2010 98.8 125.1 2011 98.9 Share (%) Non-Life

86.08 % Life

GRAPH 0.37 % Annuity

Supplementary insurance linked 6.44 % with life assurance policies Life – Premium structure in 2011 0.37 % Marriage and birth assurance

6.74 % Unit linked

Life Insurance 101 life insurance

TABLE

Life - Gross premium written and number of policies issued in 2011

Code Group of classes / risks 19.01 Endowment assurance 19.02 Term assurance 19.03 Pure endowment assurance 19.04 Whole life assurance 19.05 Critical illness assurance 19.99 Other life assurance

19 Life

20.01 Life annuity 20.02 Life annuity with limited duration 20.99 Other annuities

20 Annuity

21.01 Supplementary accident insurance (as a supplement to life insurance) 21.02 Supplementary health insurance (as a supplement to life insurance) 21.99 Other supplementary insurance of persons(as a supplement to life insurance)

21 Supplementary insurance linked with Life assurance policies

22.01 Marriage and birth assurance

22 Marriage and birth assurance

23.01 Endowment assurance with units of investment funds 23.02 Term assurance with units of investment funds 23.03 Pure endowment assurance with units of investment funds 23.04 Life assurance with units of investment funds with guarantee payment 23.99 Other life assurance with units of investment funds

23 Unit linked

24.01 Tontine

24 TONTINE

25.01 Assurance with paid-up sum assured

25 Assurance with paid-up sum assured

103 life insurance

TABLE Claims paid in life insurance recorded an upsurge and amounted to €174.6 million in 2011 or by 25.1% higher compared to 2010. The reason for that Life - Gross lies in the mentioned outflow due to premium written and paid out surrender value and a growth number of policies of expiries (endowment) of classic life issued in 2011 insurance policies. Due to weaker

Gross premium written Number of policies issued selling results the new premium in EUR 000 income could not compensate such

Share Share larger outflows in the existing Code Group of classes / risks 2011 - % 2011 - % Code portfolio. The premium drop i.e. the 19.01 Endowment assurance 238,241 84.63 526,009 69.81 19.01 weakened selling of new insurance are 19.02 Term assurance 9,380 3.33 124,959 16.58 19.02 presented in numbers: in 2011 new 19.03 8,716 3.10 24,956 3.31 19.03 Pure endowment assurance zaračunata zaračunata premiums were by €1.2 million lower 19.04 Whole life assurance bruto premija 9,837 udio 3.49bruto premija 31,098udio inde4.13x 19.04 2010. u % 2011. u % 11/10 than in 2010 (a drop from €71.7 million 19.05 Critical illness assurance 12,213 4.34 38,999 5.18 19.05 to €70.5 million). However, a drop has 19.99 Other life assurance 531.384.880 3,136 5,75 1.11517.410.367 7,5085,66 97,41.00 19.99 258.702.687 2,80 255.146.977 2,79 98,6 not been recorded in all segments of 19 Life 888.639.249281,522 9,61 100.00797.849.422 753,5298,72 100.0089,8 19 business – while new insurance with a 6.093.987 0,07 5.325.247 0,06 87,4 regular premium fell by €7.6 million, 20.01 Life annuity 23.440.475 878 0,25 72.13 15.129.611 2,0180,17 64,565.60 20.01 new insurance with a single premium 20.02 Life annuity with limited duration 228.551.066 333 2,47 27.38205.142.104 1,0372,24 89,833.71 20.02 increased by €6.4 million. Greatest 20.99 Other annuities 66.964.492 6 0,72 0.49 62.119.694 210,68 92,80.68 20.99 losses suffered supplementary 573.684.737 6,20 565.981.448 6,19 98,7 insurance lines which in 2011 and 20 Annuity 763.740.430 1,217 8,26 100.00755.922.476 3,0768,27 100.0099,0 20 2.890.062.484 31,26 2.935.198.221 32,10 101,6 compared to 2010 gained by 37.3% less new premiums and that is €914 21.01 Supplementary accident insurance (as a supplement to life insurance) 2.286.625 19,525 0,02 92.77 2.564.748 482,2320,03 112,289.35 21.01 tousand less. 21.02 Supplementary health insurance (as a supplement to life insurance) 42.816.912 78 0,46 0.37 36.622.213 1,0270,40 85,50.19 21.02 21.99 Other supplementary insurance of persons(as a supplement to life insurance) 266.303.080 1,444 2,88 6.86289.347.729 56,4803,16 108,710.46 21.99 116.772.524 1,26 130.084.459 1,42 111,4 21 Supplementary insurance linked with Life assurance policies 4.580.210 21,047 0,05 100.00 7.868.615 539,7390,09 171,8100.00 21 Life density (penetration) in 2011 76.213.037 0,82 82.689.591 0,90 108,5 accounted for €75 while its average in 2.532.832 0,03 2.911.104 0,03 114,9 22.01 Marriage and birth assurance 1,206 100.00 4,355 100.00 22.01 EU countries was €85. It indicates a 45.089.835 0,49 46.663.469 0,51 103,5 2.111.939.127 22,84 2.092.895.081 22,89 99,1 low insurance density and the 22 Marriage and birth assurance 1,206 100.00 4,355 100.00 22 7.154.593 0,08 9.046.899 0,10 126,4 potential for growth and development 162.060.010 1,75 156.469.110 1,71 96,6 of life insurance in the Republic of 23.01 Endowment assurance with units of investment funds 11,968 54.29 32,578 59.26 23.01 9.244.279 0,10 8.969.056 0,10 97,0 23.02 Term assurance with units of investment funds 0 0.00 0 0.00 23.02 Croatia. It can be expected that in the 23.03 Pure endowment assurance with units of investment funds 0 0.00 0 0.00 23.03 coming years and especially after the 23.04 Life assurance with units of investment funds with guarantee payment 167.285.110 7,816 1,81 35.46163.887.736 9,5491,79 98,017.37 23.04 crises the life insurance industry shall 23.99 Other life assurance with units of investment funds 0 2,2610,00 10.26 0 12,8450,00 23.37- 23.99 catch up the same pace of growth and 0 0,00 0 0,00 - gain more importance in the total 23 Unit linked 22,045 100.00 54,972 100.00 23 financial industry. 6.787.859.539 73,42 6.713.977.496 73,41 98,1 24.01 Tontine 2.457.683.118 026,58 0.002.431.267.882 26,590 98,80.00 24.01 9.245.542.658 100,00 9.145.245.378 100,00 98,2 24 TONTINE 0 0.00 0 0.00 24

25.01 Assurance with paid-up sum assured 0 0.00 0 0.00 25.01

25 Assurance with paid-up sum assured 0 0.00 0 0.00 25

103 Life Insurance 103 life insurance

TABLE

Life - Number and amounts of claims paid in 2011

Code Group of classes / risks 19.01 Endowment assurance 19.02 Term assurance 19.03 Pure endowment assurance 19.04 Whole life assurance 19.05 Critical illness assurance 19.99 Other life assurance

19 Life

20.01 Life annuity 20.02 Life annuity with limited duration 20.99 Other annuities

20 Annuity

21.01 Supplementary accident insurance (as a supplement to life insurance) 21.02 Supplementary health insurance (as a supplement to life insurance) 21.99 Other supplementary insurance of persons(as a supplement to life insurance)

21 Supplementary insurance linked with Life assurance policies

22.01 Marriage and birth assurance

22 Marriage and birth assurance

23.01 Endowment assurance with units of investment funds 23.02 Term assurance with units of investment funds 23.03 Pure endowment assurance with units of investment funds 23.04 Life assurance with units of investment funds with guarantee payment 23.99 Other life assurance with units of investment funds

23 Unit linked

24.01 Tontine

24 TONTINE

25.01 Assurance with paid-up sum assured

25 Assurance with paid-up sum assured

104 Number of claims paid Claims paid, gross amount in EUR 000

Share Share 2011 - % 2011 - % Code 40,831 87.01 148,093 92.29 19.01 1,040 2.22 1,475 0.92 19.02 936 1.99 2,471 1.54 19.03 1,799 3.83 2,469 1.54 19.04 1,795 3.82 3,517 2.19 19.05 528 1.13 2,441 1.52 19.99

46,929 100.00 160,467 100.00 19

144 42.11 918 79.27 20.01 196 57.31 230 19.82 20.02 2 0.58 11 0.91 20.99

342 100.00 1,158 100.00 20

3,773 87.70 4,321 94.94 21.01 18 0.42 10 0.22 21.02 511 11.88 220 4.83 21.99

4,302 100.00 4,551 100.00 21

234 100.00 550 100.00 22.01

234 100.00 550 100.00 22

2,675 51.29 2,359 29.63 23.01 0 0.00 0 0.00 23.02 0 0.00 0 0.00 23.03 423 8.11 1,577 19.80 23.04 2,117 40.59 4,027 50.57 23.99

5,215 100.00 7,963 100.00 23

0 0.00 0 0.00 24.01

0 0.00 0 0.00 24

0 0.00 0 0.00 25.01

0 0.00 0 0.00 25

Life Insurance 105 life insurance

TABLE

Life – Number of insured persons in 2011

Code Group of classes / risks 19.01 Endowment assurance 19.02 Term assurance 19.03 Pure endowment assurance 19.04 Whole life assurance 19.05 Critical illness assurance 19.99 Other life assurance

19 Life

20.01 Life annuity 20.02 Life annuity with limited duration 20.99 Other annuities

20 Annuity

21.01 Supplementary accident insurance (as a supplement to life insurance) 21.02 Supplementary health insurance (as a supplement to life insurance) 21.99 Other supplementary insurance of persons(as a supplement to life insurance)

21 Supplementary insurance linked with Life assurance policies

22.01 Marriage and birth assurance

22 Marriage and birth assurance

23.01 Endowment assurance with units of investment funds 23.02 Term assurance with units of investment funds 23.03 Pure endowment assurance with units of investment funds 23.04 Life assurance with units of investment funds with guarantee payment 23.99 Other life assurance with units of investment funds

23 Unit linked

24.01 Tontine

24 TONTINE

25.01 Assurance with paid-up sum assured

25 Assurance with paid-up sum assured

TOTAL

106 Number of insured persons Number of insured persons (active policies) through the year with residence on 31st Dec, with residence

at home abroad at home abroad Code 238.325 1.299 529.203 6.778 19.01 77.351 8 140.357 38 19.02 13.115 15 25.189 35 19.03 4.143 15 29.877 340 19.04 10.846 34 38.714 358 19.05 328 0 7.240 235 19.99

344.108 1.371 770.580 7.784 19

867 0 2.020 0 20.01 208 0 1.005 0 20.02 2 0 21 0 20.99

1.077 0 3.046 0 20

319.535 1.464 503.010 5.619 21.01 0 0 1.027 1 21.02 53.917 8 62.930 115 21.99

373.452 1.472 566.967 5.735 21

851 65 4.241 114 22.01

851 65 4.241 114 22

23.305 100 32.021 61 23.01 00 0 023.02 00 0 023.03 7.735 57 9.093 61 23.04 14.835 0 12.845 0 23.99

45.875 157 53.959 122 23

00 0 024.01

00 0 0 24

00 0 025.01

00 0 0 25

765.363 3.065 1.398.793 13.755

Life Insurance 107 life insurance

TABLE

Number of insurance policies issued and gross premium written of new18 life insurance in 2011

Code Group of classes / risks 19.01 Endowment assurance 19.02 Term assurance 19.03 Pure endowment assurance 19.04 Whole life assurance 19.05 Critical illness assurance 19.99 Other life assurance

19 Life

20.01 Life annuity 20.02 Life annuity with limited duration 20.99 Other annuities

20 Annuity

21.01 Supplementary accident insurance (as a supplement to life insurance) 21.02 Supplementary health insurance (as a supplement to life insurance) 21.99 Other supplementary insurance of persons(as a supplement to life insurance)

21 Supplementary insurance linked with Life assurance policies

22.01 Marriage and birth assurance

22 Marriage and birth assurance

23.01 Endowment assurance with units of investment funds 23.02 Term assurance with units of investment funds 23.03 Pure endowment assurance with units of investment funds 23.04 Life assurance with units of investment funds with guarantee payment 23.99 Other life assurance with units of investment funds

23 Unit linked

24.01 Tontine

24 TONTINE

25.01 Assurance with paid-up sum assured

25 Assurance with paid-up sum assured

TOTAL

18Definition of new insurance: New insurance is considered every insurance contract by which the premium has for the first time been earned in the calendar year of observation.

108 Gross premium Gross premium written of new written of new Number of new Number of new insurance with insurance with insurance with insurance with a regular a single a regular a single premium premium premium premium in EUR in EUR Code 46,734 11,141 13,382,379 32,356,884 19.01 7,335 19,872 427,876 7,415,832 19.02 7,575 284 1,428,807 1,150,903 19.03 4,123 0 316,118 0 19.04 6,088 15 701,975 33,544 19.05 123 204 24,489 26,038 19.99

71,978 31,516 16,281,644 40,983,202 19

26 6 8,915 196,679 20.01 2 17 238 144,192 20.02 0 2 0 5,997 20.99

28 25 9,152 346,868 20

71,913 1,992 961,704 177,532 21.01 575 0 39,268 0 21.02 36,954 111 332,411 26,028 21.99

109,442 2,103 1,333,382 203,560 21

77 1 21,142 5,337 22.01

77 1 21,142 5,337 22

4,091 365 1,033,031 512,153 23.01 00 0 023.02 00 0 023.03 0 1,774 0 7,809,947 23.04 179 966 160,223 1,813,030 23.99

4,270 3,105 1,193,253 10,135,130 23

00 0 024.01

00 0 024

00 0 025.01

00 0 025

185,795 36,750 18,838,574 51,674,097

Life Insurance 109

INSURANCE AND REINSURANCE COMPANIES

Note: The total 2011 Non-Life Gross Written Premium includes co-insurance premiums amounting to €1,173,697, The total 2010 Non-Life Gross Written Premium includes co-insurance premiums amounting to €1,358,308 Insurance and Reinsurance Companies1

• Agram Life Insurance Co. Ltd.4 05 5 • Allianz Zagreb Ltd. • Basler Insurance Zagreb Ltd.6 This part of the Report provides basic • BNP Paribas Cardif Insurance Co. Ltd.7 information on insurance and • Croatia Insurance Co. Ltd. reinsurance companies active in the • Croatia Health Insurance Co. Ltd. 2 Republic of Croatia - information • Croatia Lloyd Reinsurance Co. Ltd. relating to the establishment of the • Erste Insurance Vienna Insurance Group Ltd.8 3 companies, their management , • Euroherc Insurance Co. Ltd. ownership structure, transacted • Generali Insurance Co. Ltd.9

insurance business, addresses of 10 • GRAWE Hrvatska Ltd. branch offices, phone and fax numbers, as well as basic data on their business activities in 2011.

The Report also provides information on mergers, take-overs, changes of corporate names etc., as well as basic information on the newly incorporated life insurance company Wüstenrot životno osiguranje d.d. that was granted supervisory authorisation to

carry on life insurance by the Croatian 1 Data supplied by the insurance companies and collected through the statistics application of the Financial Services Supervisory Agency Croatian Insurance Bureau „HUO_Statistika“. in October 2011, and information on 2 Information is sourced from the insurance and reinsurance companies. the Croatian Nuclear Pool. 3 Information on the Management of the Companies as per 1 June 2012. * On 24 October 2002 the Commercial Court in Split decided on the liquidation of Alpina Insurance Company Ltd. The Croatian Financial Services Supervisory Agency revoked the licence of Addenda In 2011, the following insurance and Health Insurance Company Ltd. to carry out all insurance business with effect from 6 April 2006. The reinsurance companies operated in portfolio was transferred to Osiguranje Zagreb d.d. Allianz Reinsurance ceased business as reinsurance company. On 13 December 2010 the Company re-registered and changed its corporate the Croatian market*: name to Allianz Services. 4 The change of the corporate name Euroherc životno osiguranje d.d. to Agram životno osiguranje d.d. was registered at the Commercial Court in Zagreb on 30 December 2005. With effect from 1 January 2006, Sunce Insurance Ltd. transferred its life insurance business to Agram Life Insurance. 5 On 28 January 1999 the old corporate name Adriatic osiguranje d.d. was changed to Allianz Zagreb d.d. 6 Addenda Health Insurance Ltd. transferred its business to Zagreb Insurance Ltd. under the terms of the Portfolio Transfer Contract of 17 May 2006. The change of the corporate name Osiguranje Zagreb d.d. to Basler osiguranje Zagreb d.d. was registered at the Commercial Court in Zagreb on 20 October 2009. By Decisions No Tt-10/1374-2 and Tt-10/1376-2 of the Commercial Court in Zagreb of 15 February 2010, the takeover of Basler Insurance Co. and Basler Life Insurance Co. was entered into the Court Register. 7 Cardif osiguranje d.d. commenced underwriting business on 10 September 2007. On 2 November 2011 the corporate name was changed to BNP Paribas Cardif osiguranje d.d. 8 The Company was incorporated in July 2007 under the name Erste Sparkassen osiguranje d.d. On 1 June 2009 the corporate name was changed to Erste osiguranje Vienna Insurance Group d.d. 9 The establishment of Generali Insurance Ltd. was entered into the court register by decision of the Commercial court in Zagreb passed on 7 August 2003. By vitue of the Decision of the Croatian Financial Services Supervisory Agency of 21 December 2006 and according to Decision No. Tt- 06/13543-2 of the Commercial court in Zagreb registered on 29 December 2006, the Companies Generali Insurance Ltd. and Generali Life Insurance Ltd. merged with Libertas Insurance Ltd. that at the same time was re-named Generali Insurance Co. Ltd. 10 The take-over of Adria Insurance Ltd. and Slavonija Insurance Ltd. by GRAWE Hrvatska Ltd. was registered at the Commercial Court in Zagreb on 12 December 2001.

112 1 · Helios Vienna Insurance Group Ltd.1 On 15 September 2008 the corporate name Osiguranje Helios d.d. was changed to Helios 2 · Hrvatska osiguravajuća kuća – HOK Insurance Ltd. Vienna Insurance Group d.d. za osiguranje. On 11 · Hrvatsko kreditno osiguranje d.d. - Croatian Credit Insurance Ltd.3 June 2010 Cosmopolitan Life Vienna Insurance Group Ltd. merged into Helios Vienna Insurance · Izvor Insurance Co. Ltd.4 Group Insurance Ltd. by virtue of the decision of

5 the Commercial court in Zagreb No. Tt-10/3482-4. · Jadransko Insurance Co. Ltd. 2 6 In 2007, the corporate name HOK-osiguranje d.d. · KD Life Insurance Ltd. was changed to Hrvatska osiguravajuća kuća d.d. · Kvarner Vienna Insurance Group Ltd.7 3 On 24 September 2009 the Company was granted supervisory authorisation to carry on credit · Merkur Insurance Co. Ltd. insurance and commenced operating on 18 · Société Générale Insurance Co. Ltd.8 January 2010. 4 · Sunce Insurance Co. Ltd.9 The Company was granted supervisory authorisation to carry on non-life insurance by the · Triglav Insurance Co. Ltd.10 Croatian Financial Services Supervisory Agency on 23 September 2010 and commenced operating as · UNIQA Insurance Co. Ltd. from 1 January 2011. 11 · VELEBIT Insurance Ltd. 5 With effect from 23 May 2001, the takeover of · VELEBIT LIFE Insurance Ltd.12 Mediteran Insurance Co. Ltd. by Jadransko Insurance Co. Ltd. was registered with the Court · VICTORIA Insurance Ltd.13 Registrar at the Commercial Court in Split. By

14 virtue of the decision of the Commercial court in · VICTORIA Life Insurance Ltd. Split No. Tt-04/2537-4 of 29 December 2004, the take-over of Atlas Insurance Co. Ltd. was entered into the Court Registrar. The life insurance portfolio of Atlas Insurance Co. Ltd. was The Croatian legislation provides that insurance business may be carried on by an transferred to Euroherc Life Insurance. insurance company with head offices in the Republic of Croatia that was granted 6 On 17 April 2008 the Company was granted supervisory authorisation to write insurance business, a branch of an insurance supervisory authorisation to carry on life insurance company from a third country which obtained authorisation to carry out insurance business and commenced operating on 5 May business from the Supervisory Authority and insurance companies from a 2008. 7 Member State which pursuant to the Croatian Insurance Law are entitled to carry Following the take-over of Kvarner Insurance Ltd. by Wiener Städtische Insurance Ltd., registered on insurance business in the territory of the Republic of Croatia either directly or at the Commercial Court in Rijeka on 2 July 2001, through a branch. An insurance company may be set up either in the form of a the Company changed its name to Kvarner company limited by shares or a mutual insurance company, whereas a reinsurance Wiener Städtische Insurance Ltd. on 3 July 2001. By Decision of the Commercial Court in Rijeka No. company may only be incorporated as a company limited by shares. Tt-05/4462-2 of 30 December 2005, the takeover of Aurum Wiener Städtische Insurance Co. was entered into the Court Register. The new All of the above insurance and reinsurance companies are companies limited by corporate name Kvarner Vienna Insurance Group shares established by legal and natural persons from the Republic of Croatia or Ltd. was registered at the Commercial Court in foreign legal entities. Rijeka under Tt-07/1306-2 on 26 June 2007. 8 On 23 December 2008 the Company was granted Insurance companies transacting compulsory traffic insurance business are supervisory authorisation to carry on life insurance business and commenced operating on 1 April required to be Members of the Croatian Insurance Bureau. 2009. 9 On 13 March 2003 the Commercial Court in Zagreb The tabular presentations of the gross premiums written by the companies passed the Decision on the liquidation of provide a breakdown of comparative data by major business lines. Certain Poslodavac Mutual Insurance Company. Pursuant to the Act on Amendments to the Health Insurance insurance classes have therefore been grouped in the tables as follows: Act, the portfolio was transferred to Sunce Insurance Co. Ltd. on 1st October 2002. The u· Other Casco - include takeover of Veritas Insurance Co. Ltd. was entered in the Court Register based on the Decision of the Railway rolling stock (04), Commercial Court in Zagreb No. Tt-05/6926-2 of Aircraft (05) and 16 November 2005. With effect from 1 January Ships (06) 2006, the life insurance portfolio of Sunce Insurance Co. Ltd. was transferred to Agram Life u· Property – comprises Insurance Co. Ltd. Fire and natural forces (08) and 10 The Company was established in 1967. On 1 October 2001 the corporate name Sava Insurance Other damage to property (09) Ltd. was changed to Triglav Insurance Ltd. u· Other Liability – comprising 11 The Company commenced operating on 1 January Aircraft liability (11), 2008. Liability for ships (12) and 12 The Company commenced business activities on 1 December 2007. General liability (13) 13 On 4 December 2008 the Company was granted u· Credit, Suretyship and Financial Loss – comprises supervisory authorisation to carry on insurance business in the classes: Accident, Fire and Natural Credit (14), Forces and Other Damage to Property. On 4 Suretyship (15) and August 2010 the authorisation was extended to Miscellaneous financial losses (16) Health, Other Liability, Credit, Suretyship, Miscellaneous financial losses, Legal expenses and u· Other – relates to Travel insurance. Goods in transit (7) and 14 On 5 June 2008 the Company was granted supervisory authorisation to carry on life insurance Travel insurance (18) business and commenced operating on 1 u· Life – represents all Life insurance classes September 2008.

Insurance and Reinsurance Companies 113 Insurance and Reinsurance Companies

TABLE

Number of Insurance Undertakings by Ownership and Insurance Business Written

Non-Life1 Life2 Composite3 Reinsurance4 TOTAL domestic5 721212

foreign6 249015

TOTAL 9 6 10 2 27

Non-Life1 Life2 Composite3 Reinsurance4 TOTAL domestic5 821112

foreign6 249015

TOTAL 10 6 10 1 27

1 insurance company authorised to carry on only non-life Insurance 2 insurance company authorised to carry on only life insurance 3 insurance company authorised to carry on both life and non- life insurance 4 insurance company carries on reinsurance exclusively 5 insurance companies in majority ownership (over 50%) of domestic natural and legal persons 6 majority (over 50%) foreign-owned insurance companies

114 TABLE

Insurance / Reinsurance Business carried out in 2011

Insurance / Reinsurance Company Insurance Business 1. Agram životno osiguranje d.d. Life 2. Allianz Zagreb d.d. Composite (Life and Non-Life) 3. Basler osiguranje Zagreb d.d.* Composite (Life and Non-Life) 4. BNP Paribas Cardif osiguranje d.d. Non-Life 5. Croatia osiguranje d.d. Composite (Life and Non-Life) 6. Croatia Lloyd d.d. Reinsurance 7. Croatia zdravstveno osiguranje d.d. Non-Life 8. Erste osiguranje Vienna Insurance Group d.d. Life 9. Euroherc osiguranje d.d. Non-Life 10. Generali osiguranje d.d. Composite (Life and Non-Life) 11. Grawe Hrvatska d.d. Composite (Life and Non-Life) 12. Helios Vienna Insurance Group d.d.** Composite (Life and Non-Life) 13. HOK osiguranje d.d. Non-Life 14. Hrvatsko kreditno osiguranje d.d. Non-Life 15. Izvor osiguranje d.d. Non-Life 16. Jadransko osiguranje d.d. Non-Life 17. KD životno osiguranje d.d. Life 18. Kvarner Vienna Insurance Group d.d. Composite (Life and Non-Life) 19. Merkur osiguranje d.d. Composite (Life and Non-Life) 20. Société Générale osiguranje d.d. Life 21. Sunce osiguranje d.d. Non-Life 22. Triglav osiguranje d.d. Composite (Life and Non-Life) 23. Uniqa osiguranje d.d. Composite (Life and Non-Life) 24. Velebit osiguranje d.d. Non-Life 25. Velebit životno osiguranje d.d. Life 26. Victoria osiguranje d.d. Non-Life 27. Victoria životno osiguranje d.d. Life * Basler osiguranje d.d. Non-Life * Basler životno osiguranje d.d. Life ** Cosmopolitan Life Vienna Insurance Group d.d. Life

Note: bolded companies are Members of the Croatian Insurance Bureau

* Data for Basler osiguranje Zagreb d.d. include data of the companies Basler osiguranje d.d. and Basler životno osiguranje d.d. that were taken over by Basler osiguranje Zagreb d.d. on 15 February 2010.

** Data for Helios Vienna Insurance Group d.d. include data of the company Cosmopolitan Life Vienna Insurance Group d.d. that was taken over by Helios VIG d.d. on 11 June 2010.

Insurance and Reinsurance Companies 115 Insurance and Reinsurance Companies

GRAPH

Portfolio Breakdown — Life and Non-Life Business — 2011

Insurance Companies Agram životno Allianz Zagreb Basler osiguranje Zagreb BNP Paribas Cardif Croatia Croatia zdravstveno Erste VIG Euroherc Generali Grawe Hrvatska Helios VIG HKO HOK Izvor Jadransko KD Life Kvarner VIG Merkur Societe Generale Sunce Triglav Uniqa Velebit Velebit životno Victoria Victoria životno

116 117 %

100

90

80

70

60

50

40 Insurance and Reinsurance Companies and Reinsurance Insurance

30 Life

20

10

0 Non-Life Insurance and Reinsurance Companies

GRAPH Insurance Companies

Agram životno

Allianz Zagreb Market Shares — Basler osiguranje Zagreb Total (in €) BNP Paribas Cardif

Croatia

Croatia zdravstveno

Erste VIG

Euroherc

Generali

Grawe Hrvatska

Helios VIG

HKO

HOK

Izvor

Jadransko

KD Life

Kvarner VIG

Merkur

Societe Generale

Sunce

Triglav

Uniqa

Velebit

Velebit životno

Victoria

Victoria životno

118 120,000 160,000 200,000 240,000 280,000 320,000 360,000 400,000 80,000 40,000

0 2011 000 € 2010

27,002,189 27,804,322 137,950,441 132,356,867 55,357,980 55,017,680 9,179,859 8,775,543 375,666,449 390,087,721 13,084,941 13,075,792 14,034,196 14,360,158 134,564,760 134,853,696 44,185,744 41,201,918 52,820,721 53,588,041 23,690,459 23,539,484 899,531 208,633 23,764,912 22,257,711 2,507,341 0 86,124,064 86,289,264 1,650,232 1,109,449 60,274,850 68,792,936 38,309,291 39,062,380 5,083,692 3,956,521 23,206,981 23,780,674 53,260,789 54,545,724 31,430,420 32,277,601 9,026,775 8,383,746 1,077,282 1,273,556 181,107 114,527 5,822,974 6,935,362

Insurance and Reinsurance Companies 119 Insurance and Reinsurance Companies

GRAPH Insurance Companies

Allianz Zagreb

Basler osiguranje Zagreb Market Shares — BNP Paribas Cardif Non-Life (in €) Croatia

Croatia zdravstveno

Euroherc

Generali

Grawe Hrvatska

Helios VIG

HKO

HOK

Izvor

Jadransko

Kvarner VIG

Merkur

Sunce

Triglav

Uniqa

Velebit

Victoria

120 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 50,000

0 2011 000 € 2010

87,723,936 85,853,326 28,349,285 28,618,970 9,179,859 8,775,543 329,698,908 343,651,735 13,084,941 13,075,792 134,564,760 134,853,696 27,288,430 25,764,357 19,740,174 20,429,120 7,124,192 6,242,500 899,531 208,633 23,764,912 22,257,711 2,507,341 0 86,124,064 86,289,264 35,141,662 40,357,551 4,003,941 4,177,207 23,206,981 23,780,674 43,644,326 44,453,020 17,864,766 15,770,641 9,026,775 8,383,746 181,107 114,527

Insurance and Reinsurance Companies 121 Insurance and Reinsurance Companies

GRAPH Insurance Companies

Agram životno

Allianz Zagreb Market Shares — Basler osiguranje Zagreb Life (in €) Croatia

Erste VIG

Generali

Grawe Hrvatska

Helios VIG

KD Life

Kvarner VIG

Merkur

Societe Generale

Triglav

Uniqa

Velebit životno

Victoria životno

122 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 5,000

0 2011 000 € 2010

27,002,189 27,804,322 50,226,505 46,503,541 27,008,695 26,398,710 45,967,541 46,435,986 14,034,196 14,360,158 16,897,314 15,437,561 33,080,546 33,158,921 16,566,268 17,296,984 1,650,232 1,109,449 25,133,188 28,435,385 34,305,350 34,885,173 5,083,692 3,956,521 9,616,463 10,092,704 13,565,655 16,506,960 1,077,282 1,273,556 5,822,974 6,935,362

Insurance and Reinsurance Companies 123 Insurance and Reinsurance Companies

TABLE Insurance Companies

AGRAM ŽIVOTNO OSIGURANJE D.D.

ALLIANZ ZAGREB D.D. Insurance Classes BASLER OSIGURANJE ZAGREB D.D. Transacted in 2011 BNP PARIBAS CARDIF OSIGURANJE D.D.

CROATIA OSIGURANJE D.D.

CROATIA ZDRAVSTVENO OSIGURANJE D.D.

ERSTE OSIGURANJE VIG D.D.

EUROHERC OSIGURANJE D.D.

GENERALI OSIGURANJE D.D.

GRAWE HRVATSKA D.D.

HELIOS VIENNA INSURANCE GROUP D.D.

HRVATSKO KREDITNO OSIGURANJE D.D.

HOK OSIGURANJE D.D.

IZVOR OSIGURANJE D.D.

JADRANSKO OSIGURANJE D.D.

KD LIFE OSIGURANJE D.D.

KVARNER VIENNA INSURANCE GROUP D.D.

MERKUR OSIGURANJE D.D.

SOCIETE GENERALE OSIGURANJE D.D.

SUNCE OSIGURANJE D.D.

TRIGLAV OSIGURANJE D.D.

UNIQA OSIGURANJE D.D.

VELEBIT OSIGURANJE D.D.

VELEBIT ŽIVOTNO OSIGURANJE D.D.

VICTORIA OSIGURANJE D.D.

VICTORIA ŽIVOTNO OSIGURANJE D.D.

124 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Insurance and Reinsurance Companies 125 Insurance and Reinsurance Companies

TABLE

Insurance Companies

Market AGRAM ŽIVOTNO OSIGURANJE D.D. Shares — Gross ALLIANZ ZAGREB D.D. Written Premium BASLER OSIGURANJE ZAGREB D.D. by Company — Total BNP PARIBAS CARDIF OSIGURANJE D.D.

CROATIA OSIGURANJE D.D.

CROATIA ZDRAVSTVENO OSIGURANJE D.D.

ERSTE OSIGURANJE VIG D.D.

EUROHERC OSIGURANJE D.D.

GENERALI OSIGURANJE D.D.

GRAWE HRVATSKA D.D.

HELIOS VIENNA INSURANCE GROUP D.D.

HRVATSKO KREDITNO OSIGURANJE D.D.

HOK OSIGURANJE D.D.

IZVOR OSIGURANJE D.D.

JADRANSKO OSIGURANJE D.D.

KD LIFE OSIGURANJE D.D.

KVARNER VIENNA INSURANCE GROUP D.D.

MERKUR OSIGURANJE D.D.

SOCIETE GENERALE OSIGURANJE D.D.

SUNCE OSIGURANJE D.D.

TRIGLAV OSIGURANJE D.D.

UNIQA OSIGURANJE D.D.

VELEBIT OSIGURANJE D.D.

VELEBIT ŽIVOTNO OSIGURANJE D.D.

VICTORIA OSIGURANJE D.D.

VICTORIA ŽIVOTNO OSIGURANJE D.D.

TOTAL

Note: * Data for Basler osiguranje Zagreb d.d. include data of the companies Basler osiguranje d.d. and Basler životno osiguranje d.d. that were taken over by Basler osiguranje Zagreb d.d. on 15 February 2010. ** Data for Helios Vienna Insurance Group d.d. include data of the company Cosmopolitan Life Vienna Insurance Group d.d. that was taken over by Helios VIG d.d. on 11 June 2010.

126 Gross Written Share Premium (in €) (in %) Index 2010 2011 11/10 2010 2011

27,804,322 27,002,189 97.1 2.24 2.20

132,356,867 137,950,441 104.2 10.64 11.21

55,017,680 55,357,980 100.6 4.42 4.50

8,775,543 9,179,859 104.6 0.71 0.75

390,087,721 375,666,449 96.3 31.37 30.54

13,075,792 13,084,941 100.1 1.05 1.06

14,360,158 14,034,196 97.7 1.15 1.14

134,853,696 134,564,760 99.8 10.84 10.94

41,201,918 44,185,744 107.2 3.31 3.59

53,588,041 52,820,721 98.6 4.31 4.29

23,539,484 23,690,459 100.6 1.89 1.93

208,633 899,531 431.2 0.02 0.07

22,257,711 23,764,912 106.8 1.79 1.93

0 2,507,341 - 0.00 0.20

86,289,264 86,124,064 99.8 6.94 7.00

1,109,449 1,650,232 148.7 0.09 0.14

68,792,936 60,274,850 87.6 5.53 4.90

39,062,380 38,309,291 98.1 3.14 3.12

3,956,521 5,083,692 128.5 0.32 0.41

23,780,674 23,206,981 97.6 1.91 1.89

54,545,724 53,260,789 97.6 4.39 4.33

32,277,601 31,430,420 97.4 2.60 2.56

8,383,746 9,026,775 107.7 0.67 0.73

1,273,556 1,077,282 84.6 0.10 0.09

114,527 181,107 158.1 0.01 0.01

6,935,362 5,822,974 84.0 0.56 0.47

1,243,649,308 1,230,157,980 98.9 100.00 100.00

Insurance and Reinsurance Companies 127 Insurance and Reinsurance Companies

TABLE

Insurance Companies

Market AGRAM ŽIVOTNO OSIGURANJE D.D. Shares — Gross ALLIANZ ZAGREB D.D. Written Premium BASLER OSIGURANJE ZAGREB D.D. by Company — Non-Life BNP PARIBAS CARDIF OSIGURANJE D.D.

CROATIA OSIGURANJE D.D.1

CROATIA ZDRAVSTVENO OSIGURANJE D.D.

ERSTE OSIGURANJE VIG D.D.

EUROHERC OSIGURANJE D.D.2

GENERALI OSIGURANJE D.D.3

GRAWE HRVATSKA D.D.

HELIOS VIENNA INSURANCE GROUP D.D.4

HRVATSKO KREDITNO OSIGURANJE D.D.

HOK OSIGURANJE D.D.

IZVOR OSIGURANJE D.D.

JADRANSKO OSIGURANJE D.D.5

KD LIFE OSIGURANJE D.D.

KVARNER VIENNA INSURANCE GROUP D.D.

MERKUR OSIGURANJE D.D.

SOCIETE GENERALE OSIGURANJE D.D.

SUNCE OSIGURANJE D.D.6

TRIGLAV OSIGURANJE D.D.

UNIQA OSIGURANJE D.D.

VELEBIT OSIGURANJE D.D.

VELEBIT ŽIVOTNO OSIGURANJE D.D.

VICTORIA OSIGURANJE D.D.

VICTORIA ŽIVOTNO OSIGURANJE D.D.

TOTAL

Note : The total 2011 Non-Life Gross Written Premium includes co-insurance premiums totalling €1,173,697, by Company: 1 Croatia osiguranje d.d. - 2011 Non-Life GWP includes co-insurance premiums amounting to €527,323 2 Euroherc osiguranje d.d. - 2011 Non-Life GWP includes co-insurance premiums amounting to €24,731 3 Generali osiguranje d.d. - 2011 Non-Life GWP includes co-insurance premiums amounting to €578,978 4 Helios VIG osiguranje d.d. - 2011 Non-Life GWP includes co-insurance premiums amounting to €6,382 5 Jadransko osiguranje d.d. - 2011 Non-Life GWP includes co-insurance premiums amounting to €24,864 6 Sunce osiguranje d.d. - 2011 Non-Life GWP includes co-insurance premiums amounting to €11,417

128 Gross Written Share Premium (in €) (in %) Index 2010 2011 11/10 2010 2011

0 0 - 0.00 0.00

85,853,326 87,723,936 102.2 9.40 9.71

28,618,970 28,349,285 99.1 3.14 3.14

8,775,543 9,179,859 104.6 0.96 1.02

343,651,735 329,698,908 95.9 37.64 36.51

13,075,792 13,084,941 100.1 1.43 1.45

0 0 - 0.00 0.00

134,853,696 134,564,760 99.8 14.77 14.90

25,764,357 27,288,430 105.9 2.82 3.02

20,429,120 19,740,174 96.6 2.24 2.18

6,242,500 7,124,192 114.1 0.68 0.79

208,633 899,531 431.2 0.02 0.10

22,257,711 23,764,912 106.8 2.44 2.63

0 2,507,341 - 0.00 0.28

86,289,264 86,124,064 99.8 9.45 9.54

0 0 - 0.00 0.00

40,357,551 35,141,662 87.1 4.42 3.89

4,177,207 4,003,941 95.9 0.46 0.44

0 0 - 0.00 0.00

23,780,674 23,206,981 97.6 2.60 2.57

44,453,020 43,644,326 98.2 4.87 4.83

15,770,641 17,864,766 113.3 1.73 1.98

8,383,746 9,026,775 107.7 0.92 1.00

0 0 - 0.00 0.00

114,527 181,107 158.1 0.01 0.02

0 0 - 0.00 0.00

913,058,014 903,119,890 98.9 100.00 100.00

The total 2010 Non-Life Gross Written Premium includes co-insurance premiums totalling €1,358,308, by Company: 1 Croatia osiguranje d.d. - 2010 Non-Life GWP includes co-insurance premiums amounting to €615,372 2 Euroherc osiguranje d.d. - 2010 Non-Life GWP includes co-insurance premiums amounting to €1,463 3 Generali osiguranje d.d. - 2010 Non-Life GWP includes co-insurance premiums amounting to €685,274 4 Helios VIG osiguranje d.d. - 2010 Non-Life GWP includes co-insurance premiums amounting to €23,613 5 Jadransko osiguranje d.d. - 2010 Non-Life GWP includes co-insurance premiums amounting to €19,743 6 Sunce osiguranje d.d. - 2010 Non-Life GWP includes co-insurance premiums amounting to €12,843

Insurance and Reinsurance Companies 129 Insurance and Reinsurance Companies

TABLE

Insurance Companies

Market AGRAM ŽIVOTNO OSIGURANJE D.D. Shares — Gross ALLIANZ ZAGREB D.D. Written Premium BASLER OSIGURANJE ZAGREB D.D. by Company — Life BNP PARIBAS CARDIF OSIGURANJE D.D.

CROATIA OSIGURANJE D.D.

CROATIA ZDRAVSTVENO OSIGURANJE D.D.

ERSTE OSIGURANJE VIG D.D.

EUROHERC OSIGURANJE D.D.

GENERALI OSIGURANJE D.D.

GRAWE HRVATSKA D.D.

HELIOS VIENNA INSURANCE GROUP D.D.

HRVATSKO KREDITNO OSIGURANJE D.D.

HOK OSIGURANJE D.D.

IZVOR OSIGURANJE D.D.

JADRANSKO OSIGURANJE D.D.

KD LIFE OSIGURANJE D.D.

KVARNER VIENNA INSURANCE GROUP D.D.

MERKUR OSIGURANJE D.D.

SOCIETE GENERALE OSIGURANJE D.D.

SUNCE OSIGURANJE D.D.

TRIGLAV OSIGURANJE D.D.

UNIQA OSIGURANJE D.D.

VELEBIT OSIGURANJE D.D.

VELEBIT ŽIVOTNO OSIGURANJE D.D.

VICTORIA OSIGURANJE D.D.

VICTORIA ŽIVOTNO OSIGURANJE D.D.

TOTAL

130 Gross Written Share Premium (in €) (in %) Index 2010 2011 11/10 2010 2011

27,804,322 27,002,189 97.1 8.41 8.26

46,503,541 50,226,505 108.0 14.07 15.36

26,398,710 27,008,695 102.3 7.98 8.26

0 0 - 0.00 0.00

46,435,986 45,967,541 99.0 14.05 14.05

0 0 - 0.00 0.00

14,360,158 14,034,196 97.7 4.34 4.29

0 0 - 0.00 0.00

15,437,561 16,897,314 109.5 4.67 5.17

33,158,921 33,080,546 99.8 10.03 10.11

17,296,984 16,566,268 95.8 5.23 5.07

0 0 - 0.00 0.00

0 0 - 0.00 0.00

0 0 - 0.00 0.00

0 0 - 0.00 0.00

1,109,449 1,650,232 148.7 0.34 0.50

28,435,385 25,133,188 88.4 8.60 7.69

34,885,173 34,305,350 98.3 10.55 10.49

3,956,521 5,083,692 128.5 1.20 1.55

0 0 - 0.00 0.00

10,092,704 9,616,463 95.3 3.05 2.94

16,506,960 13,565,655 82.2 4.99 4.15

0 0 - 0.00 0.00

1,273,556 1,077,282 84.6 0.39 0.33

0 0 - 0.00 0.00

6,935,362 5,822,974 84.0 2.10 1.78

330,591,294 327,038,091 98.9 100.00 100.00

Insurance and Reinsurance Companies 131 Insurance and Reinsurance Companies Code 23

Agram životno osiguranje d.d.

Branch Office:

10000 Zagreb, Trnjanska cesta 108 BJELOVAR [email protected] Zagrebačka 51, HR-43000 Bjelovar Company reg. No: MB 1292463 phone +385 43/43 3071 fax +385 43/43 30 30 Company ID No: OIB 18742666873 DUBROVNIK [email protected] Liechensteinov put 12, HR-20000 Dubrovnik phone +385 20/35 27 40 fax +385 20/33 32 36 Phone KARLOVAC +385 1/ 60 04 400 [email protected] Prilaz V. Holjevca 2a, HR-47000 Karlovac phone +385 47/49 27 20 fax +385 47/49 27 09 Fax KOPRIVNICA +385 1/ 60 04 940 [email protected] Mihovila P. Miškine 25, HR-48000 Koprivnica phone +385 48/49 25 08 fax +385 48/49 95 20 OSIJEK www.agramlife.hr [email protected] Šamačka 1, HR-31000 Osijek [email protected] phone +385 31/20 72 71 fax +385 31/21 40 18 PULA [email protected] Flanatička 33, HR-52100 Pula Ownership structure: phone +385 52/38 36 94 fax +385 52/38 36 94 domestic natural and legal persons 100% RIJEKA [email protected] Riva 8, HR-51000 Rijeka phone +385 51/20 51 20 fax +385 51/20 51 29 Chairman of the Management Board: SISAK Tomislav Novačić (as from 12 January 2011) [email protected] Franje Lovrića 17a, HR-44000 Sisak phone +385 44/66 06 43 fax +385 44/66 06 79 Members of the Management Board: SLAVONSKI BROD Goran Nadj [email protected] Petra Svačića 1a, HR-44000 Sisak Chairman of the Supervisory Board: phone +385 21/49 40 25 fax +385 21/49 40 30 SPLIT Božidar Huljev [email protected] Varaždinska 54, HR-21000 Split phone +385 21/30 99 25 fax +385 21/30 99 42 VARAŽDIN Employees as at 31 December 2011: [email protected] Zagrebačka 63, HR-42000 Varaždin 97 phone +385 42/40 91 41 fax +385 42/40 93 09 Number of Branches: ZADAR [email protected] Obala kneza Branimira 5, HR-23000 Zadar 13 phone +385 23/39 63 00 fax +385 23/39 63 09 ZAGREB [email protected] Trnjanska cesta 108, HR-10000 Zagreb phone +385 1/60 04 400 fax +385 1/60 04 940

Company Registration: Commercial Court in Zagreb under Tt-97/2583-2 of 24 June 1997, Court Register No. MBS 080151945 Supervisory Authorisation: 453-02/07-30/20, 326-112-07-9 of 6 December 2007 On 30 December 2005 Euroherc životno osiguranje d.d. changed its name to Agram životno osiguranje d.d. With effect from 1 January 2006, Sunce osiguranje d.d. transferred its life insurance portfolio to Agram životno osiguranje d.d.

Transaction Account Number: Kreditna banka Zagreb d.d. 2481000-1310000029

132 10,000 15,000 20,000 25,000 30,000 5,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident - 0.00% - 0.00% - Health - 0.00% - 0.00% - Motor Casco - 0.00% - 0.00% - Other Casco - 0.00% - 0.00% - Property - 0.00% - 0.00% - Motor TPL - 0.00% - 0.00% - Other Liability - 0.00% - 0.00% - Credit, Suretyship and Financial Loss - 0.00% - 0.00% - Other - 0.00% - 0.00% - Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE - 0.00% - 0.00% - LIFE 27,804,322 100.00% 27,002,189 100.00% 97.1

TOTAL 27,804,322 100.00% 27,002,189 100.00% 97.1

Insurance and Reinsurance Companies 133 Insurance and Reinsurance Companies Code 04

Allianz Zagreb d.d.

Branch Office:

10000 Zagreb, Heinzelova 70 OSIJEK Ulica Sv. Ane br. 82b, HR-31000 Osijek Company reg. No: MB 03796795 phone +385 31/62 31 00 fax +385 31/62 31 11 Company ID No: OIB 23759810849 PULA Divkovićeva 2c, HR-52100 Pula phone +385 52/42 52 31 fax +385 52/42 52 02 Phone RIJEKA +385 1/ 36 70 367 A. Starčevića 10-12, HR-51000 Rijeka phone +385 51/26 51 06 fax +385 51/26 51 22 Fax SPLIT +385 1/ 36 70 480 Poljička 39, HR-21000 Split phone +385 21/25 21 00 fax +385 21/25 21 11 VARAŽDIN www.allianz.hr Kapucinski trg 5, HR-42000 Varaždin [email protected] phone +385 42/67 42 00 fax +385 42/67 42 22 ZAGREB Heinzelova 70, HR-10000 Zagreb Ownership structure: phone +385 1/46 53 116 fax +385 1/36 70 483 domestic legal persons 16.83803% (Zagrebačka banka d.d.) foreign legal persons 83.16197% (Allianz new Europe Holding GmbH)

Chairman of the Management Board: Boris Galić

Members of the Management Board: Kristijan Buk, Slaven Dobrić, Hrvoje Smiljanić

Chairman of the Supervisory Board: Bruce Anthony Bowers

Employees as at 31 December 2011: 1,612 Offices: 6 Company Registration: Branches: Commercial Court in Zagreb under Fi-9055/91-2 of 20 December 1991, 24 Court Register No. MBS 080004103 Supervisory Authorisation: UP/I-453-02/06-30/50, 326-112-07-10 of 11 October 2007 Transaction Account Number: Zagrebačka banka d.d. 2360000-1400131823 - Non-Life Zagrebačka banka d.d. 2360000-1300000195 - Life

134 100,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 10,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 5,240,540 3.96% 5,919,456 4.29% 113.0 Health 40,776 0.03% 43,004 0.03% 105.5 Motor Casco 16,460,763 12.44% 14,906,145 10.81% 90.6 Other Casco 3,857,367 2.91% 3,568,603 2.59% 92.5 Property 19,901,035 15.04% 19,798,653 14.35% 99.5 Motor TPL 31,919,303 24.12% 34,273,649 24.84% 107.4 Other Liability 4,149,920 3.14% 4,961,476 3.60% 119.6 Credit, Suretyship and Financial Loss 1,613,645 1.22% 1,615,266 1.17% 100.1 Other 2,669,977 2.02% 2,637,684 1.91% 98.8 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 85,853,326 64.87% 87,723,936 63.59% 102.2 LIFE 46,503,541 35.13% 50,226,505 36.41% 108.0

TOTAL 132,356,867 100.00% 137,950,441 100.00% 104.2

Insurance and Reinsurance Companies 135 Insurance and Reinsurance Companies Code 12,000 15,000 18,000 21,000 24,000 27,000 30,000 6,000 9,000 3

12 ,000

0 000 €

Accident 2011 2010

Health 2011 Basler osiguranje Zagreb d.d. 2010 Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 Regional Centre: 2010 Motor TPL 2011 10000 Zagreb, Radnička cesta 37b ČAKOVEC Matice hrvatske 10, HR-40000 Čakovec 2010 Company reg. No: MB 3710696 phone +385 40/63 86 60 fax +385 40/31 11 30 Other Liability 2011 Company ID No: OIB 59706054982 OSIJEK Županijska 19, HR-31000 Osijek 2010 phone +385 31/20 55 20 fax +385 31/20 08 30 Credit, Suretyship and Financial Loss 2011 Phone RIJEKA 2010 +385 1/ 64 05 000 J. Trdine 2, HR-51000 Rijeka phone +385 51/35 69 50 fax +385 51/31 59 98 Legal Expenses 2011 Fax SPLIT 2010 +385 1/ 64 05 003 Spinčićeva 2c, HR-21000 Split phone +385 21/32 33 80 fax +385 21/48 52 47 Other 2011 ZAGREB 2010 www.basler-oz.hr Radnička 37b, HR-10000 Zagreb Life 2011 [email protected] phone +385 1/64 05 514 fax +385 1/64 05 003 2010 Note: Ownership structure: * Data for Basler osiguranje Zagreb d.d. include data of the companies Basler osiguranje d.d. foreign legal persons 100% (Bâloise – Holding) 100.00 and Basler životno osiguranje d.d. that were 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

taken over by Basler osiguranje Zagreb d.d. 0 % on 15 February 2010. Chairman of the Management Board: Darko Cesar 2011 2010 Members of the Management Board: Monika Brzović, Bruno Dobronić Gross Written Premium by Class

Chairman of the Supervisory Board: INDEX Martin Georg Kampik € 2010 € 2011 11/10 Accident 2,184,109 3.97% 2,399,706 4.33% 109.9

Employees as at 31 December 2011: Health 1,224,548 2.23% 1,835,670 3.32% 149.9 571 Motor Casco 3,683,651 6.70% 3,030,375 5.47% 82.3 Regional Centres: Other Casco 327,505 0.60% 315,316 0.57% 96.3 5 Company Registration: Property 4,196,680 7.63% 4,083,038 7.38% 97.3 Commercial Court in Zagreb under Fi-3811/91-2 of 25 April 1991 (incorporation as mutual Motor TPL 13,848,373 25.17% 13,062,264 23.60% 94.3 Offices: insurance company); County Commercial Court in Zagreb Fi-9182/91-2 of 29 August 1991 6 (change of status to a company limited by shares); Court Register No. MBS 080024555 Other Liability 1,833,865 3.33% 2,285,965 4.13% 124.7 Credit, Suretyship and Financial Loss 775,355 1.41% 685,542 1.24% 88.4 Supervisory Authorisation: UP/I-453-02/07-30/34, 326-112-08-7 of 7 February 2008 Other 252,108 0.46% 296,383 0.54% 117.6 Legal Expenses 292,776 0.53% 355,027 0.64% 121.3 The change of the corporate name Osiguranje Zagreb d.d. to Basler osiguranje Zagreb d.d. was registered at the Commercial Court in Zagreb on 20 October 2009 under Tt-09/10961-2. By Decision of the Commercial Court in Zagreb of 15 February 2010, the takeover of Basler ALL NON-LIFE 28,618,970 52.02% 28,349,285 51.21% 99.1 Insurance Co. and Basler Life Insurance Co. was entered into the Court Register. LIFE 26,398,710 47.98% 27,008,695 48.79% 102.3 Transaction Account Number: Privredna banka Zagreb d.d. 2340009-1100171761 – Non-Life TOTAL 55,017,680 100.00% 55,357,980 100.00% 100.6 Raiffeisenbank Austria Zagreb d.d. 2484008-1101406793 – Life

136 Insurance and Reinsurance Companies 137 12,000 15,000 18,000 21,000 24,000 27,000 30,000 6,000 9,000 3,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 Note: * Data for Basler osiguranje Zagreb d.d. include data of the companies Basler osiguranje d.d. 100.00 and Basler životno osiguranje d.d. that were 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

taken over by Basler osiguranje Zagreb d.d. 0 % on 15 February 2010.

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 2,184,109 3.97% 2,399,706 4.33% 109.9 Health 1,224,548 2.23% 1,835,670 3.32% 149.9 Motor Casco 3,683,651 6.70% 3,030,375 5.47% 82.3 Other Casco 327,505 0.60% 315,316 0.57% 96.3 Property 4,196,680 7.63% 4,083,038 7.38% 97.3 Motor TPL 13,848,373 25.17% 13,062,264 23.60% 94.3 Other Liability 1,833,865 3.33% 2,285,965 4.13% 124.7 Credit, Suretyship and Financial Loss 775,355 1.41% 685,542 1.24% 88.4 Other 252,108 0.46% 296,383 0.54% 117.6 Legal Expenses 292,776 0.53% 355,027 0.64% 121.3

ALL NON-LIFE 28,618,970 52.02% 28,349,285 51.21% 99.1 LIFE 26,398,710 47.98% 27,008,695 48.79% 102.3

TOTAL 55,017,680 100.00% 55,357,980 100.00% 100.6

Insurance and Reinsurance Companies 137 Insurance and Reinsurance Companies Code 36

BNP Paribas Cardif osiguranje d.d.

10000 Zagreb, Ivana Lučića 2a Company reg. No: MB 2176165 Company ID No: OIB 85371438696

Phone +385 1/ 53 93 100 Fax +385 1/ 53 93 111

www.bnpparibascardif.hr [email protected]

Ownership structure: foreign legal persons 100% (BNP Paribas Cardif)

Chairwoman of the Management Board: Ana Ivančić

Member of the Management Board: Hrvojka Galeković Deputy Board Member (19 April 2012 – 19 July 2012) - pending nomination of Darija Ivanković for Board Member

Chairman of the Supervisory Board: Pier-Paolo Dipaola (as from 2 November 2011)

Employees as at 31 December 2011: 23

Company Registration: Commercial Court in Zagreb under Tt-07/8534-2 of 24 July 2007, Court Register No. MBS 080594187

Supervisory Authorisation: 453-02/07-30/35, 326-112-07-16 of 19 July 2007

On 2 November 2011 the corporate name Cardif osiguranje d.d. was changed to BNP Paribas Cardif osiguranje d.d.

Transaction Account Number: Zagrebačka banka d.d. 2360000-1101938609

138 10,000 4,000 5,000 6,000 7,000 8,000 9,000 2,000 3,000 1,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011.2011 2010.2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident - 0.00% - 0.00% - Health - 0.00% - 0.00% - Motor Casco - 0.00% - 0.00% - Other Casco 0.00% 0.00% 0 Property 0.00% 0.00% 0 Motor TPL - 0.00% - 0.00% - Other Liability 0.00% 0.00% 0 Credit, Suretyship and Financial Loss 8,775,543 100.00% 9,179,859 100.00% 104.6 Other 0.00% 0.00% 0 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 8,775,543 100.00% 9,179,859 100.00% 104.6 LIFE - 0.00% - 0.00% -

TOTAL 8,775,543 100.00% 9,179,859 100.00% 104.6

Insurance and Reinsurance Companies 139 Insurance and Reinsurance Companies Code 01

Croatia osiguranje d.d.

Branch Office

BJELOVAR Trg E. Kvaternika 7, HR-43000 Bjelovar [email protected] phone +385 43/22 13 55 fax +385 43/24 21 57 ČAKOVEC Matice Hrvatske 12, HR-40000 Čakovec [email protected] phone +385 40/31 45 00 fax +385 40/31 12 67 DUBROVNIK Dr. Ante Starčevića 53, HR-20000 Dubrovnik [email protected] phone +385 20/44 88 00 fax +385 20/44 88 20 10000 Zagreb, Miramarska 22 GOSPIĆ Budačka 6, HR-53001 Gospić Company reg. No: MB 3276147 [email protected] phone +385 53/65 39 99 fax +385 53/57 24 18 KARLOVAC Trg P. Zrinskog 2, HR-47000 Karlovac Company ID No: OIB 26187994862 [email protected] phone +385 47/69 31 11 fax +385 47/69 31 77 KOPRIVNICA Trg bana J. Jelačića 9, HR-48000 Koprivnica Phone [email protected] phone +385 48/65 83 00 fax +385 48/62 21 81 KUTINA Školska ulica 4, HR-44320 Kutina +385 1/ 63 32 000 [email protected] phone +385 44/69 11 01 fax +385 44/69 11 05 Fax OSIJEK Gajev trg 1, HR-31000 Osijek [email protected] phone +385 31/22 35 00 fax +385 31/21 34 60 +385 1/ 63 32 020 POŽEGA Republike Hrvatske 1a, HR-34000 Požega [email protected] phone +385 34/28 34 44 fax +385 34/27 10 34 www.crosig.hr PULA Marka Marulića 1, HR-52100 Pula [email protected] phone +385 52/52 65 00 fax +385 52/21 15 06 [email protected] RIJEKA Korzo 39, HR-51000 Rijeka [email protected] phone +385 51/20 77 77 fax +385 51/21 48 60 Ownership structure: SISAK S. i A. Radića 24, HR-44000 Sisak [email protected] phone +385 44/56 78 88 fax +385 44/52 14 50 Republic of Croatia (Croatian State Property SLAVONSKI BROD Mažuranićeva 14, HR-35000 Slavonski Brod Management Agency) 80.23% [email protected] phone +385 35/21 41 11 fax +385 35/44 77 84 SPLIT Trg Hrv. bratske zajednice 8, HR-21000 Split domestic legal and natural persons 19.77% [email protected] phone +385 21/30 28 88 fax +385 21/30 28 22 ŠIBENIK S. Radića 9, HR-22000 Šibenik Chairman of the Management Board: [email protected] phone +385 22/43 67 77 fax +385 22/21 44 53 VARAŽDIN Kapucinski trg 14, HR-42000 Varaždin Zdravko Zrinušić [email protected] phone +385 42/30 11 00 fax +385 42/31 36 13 VINKOVCI Nazorova 4, HR-32100 Vinkovci [email protected] phone +385 32/33 16 77 fax +385 32/33 22 39 Members of the Management Board: VIROVITICA Trg kralja Tomislava 4, HR-33000 Virovitica Silvana Ivančić [email protected] phone +385 33/84 08 40 fax +385 33/84 08 41 ZABOK Matije Gupca 13, HR-49210 Zabok [email protected] phone +385 49/20 02 00 fax +385 49/20 02 50 Chairman of the Supervisory Board: ZADAR Obala Kneza Branimira 20, HR-23000 Zadar Ante Obuljen (until 27 April 2012 Nikola Mijatović) [email protected] phone +385 23/20 44 00 fax +385 23/20 44 70 ZAGREB Trg bana J. Jelačića 13, HR-10000 Zagreb [email protected] phone +385 1/45 60 111 fax +385 1/48 10 523 Employees as at 31 December 2011: ZAGREB COUNTY Trg kralja Tomislava 16, HR-10410 Velika Gorica 2,705 [email protected] phone +385 1/63 32 900 fax +385 1/63 32 915 Transport & Credit Insurance Miramarska 22, HR-10000 Zagreb Branches: Branch Zagreb phone +385 1/61 70 211 fax +385 1/61 79 376 23 [email protected]

Company Registration: Commercial Court in Zagreb under Fi-7361/90-2 of 10 October 1990, Court Register No. MBS 080051022 Supervisory Authorisation: UP/I-453-02/07-30/09, 326-112-07-7 of 6 December 2007 Transaction Account Number: Privredna banka Zagreb d.d. HR94 2340009-1100555008 - Non-Life Privredna banka Zagreb d.d. HR42 2340009-1319995552 - Life

140 100,000 110,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 10,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 Note: 2011 Non-Life GWP includes co-insurance premiums amounting to €527,323 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

2010 Non-Life GWP includes co-insurance 0 % premiums amounting to €615,372

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 26,980,306 6.92% 24,680,222 6.57% 91.5 Health 3,133,977 0.80% 2,761,357 0.74% 88.1 Motor Casco 42,955,569 11.01% 38,917,214 10.36% 90.6 Other Casco 24,561,304 6.30% 20,290,550 5.40% 82.6 Property 98,521,014 25.26% 96,891,119 25.79% 98.3 Motor TPL 107,948,572 27.67% 108,015,515 28.75% 100.1 Other Liability 21,591,686 5.54% 19,716,831 5.25% 91.3 Credit, Suretyship and Financial Loss 10,895,095 2.79% 11,418,064 3.04% 104.8 Other 7,064,213 1.81% 7,008,036 1.87% 99.2 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 343,651,735 88.10% 329,698,908 87.76% 95.9 LIFE 46,435,986 11.90% 45,967,541 12.24% 99.0

TOTAL 390,087,721 100.00% 375,666,449 100.00% 96.3

Insurance and Reinsurance Companies 141 Insurance and Reinsurance Companies Code 10

Croatia Lloyd d.d. za reosiguranje

10000 Zagreb, Ulica grada Vukovara 62 Company reg. No: MB 3276236 Company ID No: OIB 23508929264

Phone +385 1/ 63 08 888 Fax +385 1/ 63 08 800

www.croatialloyd.hr [email protected]

Ownership structure: domestic legal persons 96.73% (Croatia osiguranje d.d. 94.64% foreign legal persons 1.10% domestic natural persons 2.17%)

Chairman of the Management Board: Robert Stude

Members of the Management Board: Kitica Mioč

Chairman of the Supervisory Board: Zdravko Zrinušić

Employees as at 31 December 2011: 35

Company Registration: Commercial Court in Zagreb under I-2139 of 13 February 1991, Court Register No. MBS 080042688

Supervisory Authorisation: UP/I-453-03/07-03/02, 326-112-07-5 of 11 October 2007

Transaction Account Number: Privredna banka Zagreb d.d. 2340009-1100012493

142 €

Gross Reinsurance Premium — 2011: 63,827,686

Retrocession Premium: 43,302,457

Retained Premium: 20,525,299

Insurance and Reinsurance Companies 143 Insurance and Reinsurance Companies Code 33

Croatia zdravstveno osiguranje d.d.

10000 Zagreb, Miramarska 22 Company reg. No: MB 1808435 Company ID No: OIB 45302812775

Phone +385 1/ 63 32 766 Fax +385 1/ 63 32 777

www.croatia-zdravstveno.hr [email protected]

Ownership structure: domestic legal persons 100% (Croatia osiguranje d.d. 66.19%, Croatia Lloyd d.d. 33.81%)

Chairman of the Management Board: Kristian Podrug

Members of the Management Board: Mario Puljiz

Chairman of the Supervisory Board: Svemir Kalinić

Employees as at 31 December 2011: 112

Company Registration: Commercial Court in Zagreb on 3 March 2004 under Court Register No. MBS 080484163 Supervisory Authorisation: UP/I-453-02/07-30/11, 326-112-07-8 of 6 December 2007

Croatia Health Insurance Ltd. was established in March 2004 as an insurer specialising in voluntary health insurance.

Transaction Account Number: Privredna banka Zagreb d.d. 2340009-1110141001

144 10,000 12,500 15,000 2,500 5,000 7,500

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident - 0.00% - 0.00% - Health 13,075,792 100.00% 13,084,941 100.00% 100.1 Motor Casco - 0.00% - 0.00% - Other Casco 0.00% 0.00% 0.0 Property 0.00% 0.00% 0.0 Motor TPL - 0.00% - 0.00% - Other Liability 0.00% 0.00% 0.0 Credit, Suretyship and Financial Loss 0.00% 0.00% 0.0 Other 0.00% 0.00% 0.0 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 13,075,792 100.00% 13,084,941 100.00% 100.1 LIFE - 0.00% - 0.00% -

TOTAL 13,075,792 100.00% 13,084,941 100.00% 100.1

Insurance and Reinsurance Companies 145 Insurance and Reinsurance Companies Code 35

Erste osiguranje Vienna Insurance Group d.d.

10000 Zagreb, Miramarska 23 Company reg. No: MB 1958631 Company ID No: OIB 82891092011

Phone +385 062 37 2700 Fax +385 062 37 2710

www.erste-osiguranje.hr [email protected]

Ownership structure: domestic legal persons 10% foreign legal persons 90% (Erste&Steiermärkische bank d.d. 5%, Helios Vienna Insurance Group d.d. 5%, Vienna Insurance Group Wiener Städtische Versicherung AG 90%)

Chairwoman of the Management Board: Snježana Bertoncelj

Members of the Management Board: Marijan Jalšovec

Chairman of the Supervisory Board: Company Registration: Peter Hagen Commercial Court in Zagreb under Tt-05/6209-2 of 29 June 2005, Court Register No. MBS 080528486 Employees as at 31 December 2011: 33 Supervisory Authorisation: UP/I-453-02/07-30/10, 326-112-07-7 of 18 April 2007

The Company was established in July 2005 as an insurance company specialising in bancassurance – distributing life insurance products through the branch network of Erste & Steiermärkische Bank d.d. Until 1 July 2009 the company was trading under the name Erste Sparkassen osiguranje d.d. za životno osiguranje.

Transaction Account Number: Erste & Steiermärkische Bank d.d. Rijeka 2402006-1300000339

146 10,000 12,500 15,000 2,500 5,000 7,500

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident --0.00% 0.00% - Health - 0.00% - 0.00% - Motor Casco - 0.00% - 0.00% - Other Casco - 0.00% - 0.00% - Property - 0.00% - 0.00% - Motor TPL - 0.00% - 0.00% - Other Liability - 0.00% - 0.00% - Credit, Suretyship and Financial Loss - 0.00% - 0.00% - Other - 0.00% - 0.00% - Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE --0.00% 0.00% - LIFE 14,360,158 100.00% 14,034,196 100.00% 97.7

TOTAL 14,360,158 100.00% 14,034,196 100.00% 97.7

Insurance and Reinsurance Companies 147 Insurance and Reinsurance Companies Code 08

Euroherc osiguranje d.d. Branch Office

BJELOVAR [email protected] Trumbićeva 1b, HR-43000 Bjelovar phone +385 43/24 27 30 fax +385 43/24 37 40 ČAKOVEC [email protected] Kralja Tomislava 30, HR-40000 Čakovec phone +385 40/49 29 99 fax +385 40/49 29 86 10000 Zagreb, Ulica grada Vukovara 282 DUBROVNIK Company reg. No: MB 0140660 [email protected] Dr. Ante Starčevića 20, HR-20000 Dubrovnik phone +385 20/35 27 00 fax +385 20/35 27 60 Company ID No: OIB 22694857747 KARLOVAC [email protected] Prilaz V. Holjevca 2a, HR-47000 Karlovac Phone phone +385 47/49 26 01 fax +385 47/49 26 19 OSIJEK +385 1/ 60 04 444 [email protected] Ul. Hrvatske Republike 45, HR-31000 Osijek Toll Free Info Phone phone +385 31/49 33 33 fax +385 31/49 30 50 0800 0022 PULA [email protected] Matka Laginje 3, HR-52100 Pula Fax phone +385 52/53 09 00 fax +385 52/53 09 02 +385 1/ 60 04 999 RIJEKA [email protected] Riva 8, HR-51000 Rijeka phone +385 51/20 55 00 fax +385 51/20 59 50 www.euroherc.hr SISAK [email protected] [email protected] Franje Lovrića 17a, HR-44000 Sisak phone +385 44/54 72 11 fax +385 44/54 72 13 SLAVONSKI BROD Ownership structure: [email protected] Petra Svačića 1, HR-35000 Slavonski Brod phone +385 35/49 40 14 fax +385 35//49 40 28 domestic legal persons 14.08% SPLIT domestic natural persons 85.92% [email protected] Varaždinska 54, HR-21000 Split phone +385 21/30 99 00 fax +385 21/30 99 41 VARAŽDIN Chairman of the Management Board: [email protected] Zagrebačka 63, HR-42000 Varaždin Damir Zorić phone +385 42/40 91 00 fax +385 42/40 91 09 VELIKA GORICA [email protected] Slavka Kolara 17a, HR-10410 Velika Gorica Member of the Management Board: phone +385 1/55 54 101 fax +385 1/55 54 139 Željko Kordić ZADAR [email protected] Obala kneza Branimira 5, HR-23000 Zadar phone +385 23/39 60 00 fax +385 23/39 62 09 Authorized Representative (Procurist): ZAGREB Darinko Ivković [email protected] Ulica grada Vukovara 282, HR-10000 Zagreb phone +385 1/60 04 209 fax +385 1/60 04 920

Chairwoman of the Supervisory Board: Mladenka Grgić Company Registration: Commercial Court in Split, I-12488 of 3 November 1992, Court Register No. MBS 060012147 Employees as at 31 December 2011: 1,089 Supervisory Authorisation: Branches: UP/I-453-02/07-30-19, 326-112-07-9 of 6 December 2007 (513-04/92 of 19 October 1992) 14 and UP/I-453-02/09-30-19 of 10 September 2009 Offices: 645 Transaction Account Number: SG Splitska banka d.d. Split 2330003-1100033890 Kreditna banka Zagreb d.d. 2481000-1100100492

148 100,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 10,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 Note: 2011 Non-Life GWP includes co-insurance premiums amounting to €24,731 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

2010 Non-Life GWP includes co-insurance 0 % premiums amounting to €1,463

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 12,904,782 9.57% 12,325,843 9.16% 95.5 Health 277,837 0.21% 424,248 0.32% 152.7 Motor Casco 19,088,199 14.15% 17,292,911 12.85% 90.6 Other Casco 651,447 0.48% 685,453 0.51% 105.2 Property 9,397,387 6.97% 9,789,307 7.27% 104.2 Motor TPL 89,335,451 66.25% 89,038,977 66.17% 99.7 Other Liability 2,765,679 2.05% 4,006,861 2.98% 144.9 Credit, Suretyship and Financial Loss 279,795 0.21% 890,137 0.66% 318.1 Other 153,119 0.11% 111,023 0.08% 72.5 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 134,853,696 100.00% 134,564,760 100.00% 99.8 LIFE - 0.00% - 0.00% -

TOTAL 134,853,696 100.00% 134,564,760 100.00% 99.8

Insurance and Reinsurance Companies 149 Insurance and Reinsurance Companies Code 32

Generali osiguranje d.d.

Regional Head Office

Generalna direkcija Zagreb OSIJEK Stjepana Radića 16, HR-31000 Osijek 10010 Zagreb, Bani 110 phone +385 31/22 59 00 fax +385 31/22 59 20 Company reg. No: MB 1251961 RIJEKA Company ID No: OIB 10840749604 Put Vele crikve 1, HR-51000 Rijeka phone +385 51/35 88 00 fax +385 51/35 88 88 SPLIT Phone Vukovarska 148d, HR-21000 Split phone +385 21/35 08 00 fax +385 21/35 08 88 +385 1/ 46 00 444 VARAŽDIN Fax Pavleka Miškine 48, HR-42000 Varaždin +385 1/ 46 00 600 phone +385 42/63 21 04 fax +385 42/63 21 50 ZAGREB Bani 110, HR-10010 Zagreb www.generali.hr phone +385 1/40 91 900 fax +385 1/40 91 919 [email protected]

Ownership structure: foreign legal persons 100% (Generali PPF Holding B.V. Amsterdam)

Chairman of the Management Board: Georg Engl (until 29 December 2011 dott. Michele Cirieco)

Members of the Management Board: Jasminka Horvat Martinović

Chairman of the Supervisory Board: Company Registration: Gregor Pilgram Commercial Court in Zagreb under Tt-97/331-2 of 4 February 1997, corporate name Libertas osiguranje d.d., Court Register No. MBS 080122389 Employees as at 31 December 2011: 446 Supervisory Authorisation: UP/I-453-02/06-30/34, 326-112-06-16 of 21 December 2006, UP/I-453-02/07-30/57, 326- Branches: 112-07-7 of 20 December 2007 5 regional Head offices Internal Sales Offices: On 29 December 2006, the companies Generali insurance Ltd. and Generali Life Insurance Ltd. 38 merged with Libertas Insurance Ltd. that was simultaneously renamed Generali Insurance Ltd. External Sales Offices: 15 Transaction Account Number: Privredna banka Zagreb d.d. 2340009-1400206762 - Non-Life Privredna banka Zagreb d.d. 2340009-1100206757 - Life

150 10,000 12,000 14,000 16,000 18,000 20,000 4,000 6,000 8,000 2,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 Note: 2011 Non-Life GWP includes co-insurance premiums amounting to €578,978 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

2010 Non-Life GWP includes co-insurance 0 % premiums amounting to €685,274

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 2,211,569 5.37% 2,710,727 6.13% 122.6 Health - 0.00% - 0.00% - Motor Casco 4,223,774 10.25% 4,188,397 9.48% 99.2 Other Casco 2,163,939 5.25% 2,243,551 5.08% 103.7 Property 5,048,575 12.25% 5,053,363 11.44% 100.1 Motor TPL 9,506,967 23.07% 9,944,910 22.51% 104.6 Other Liability 1,465,081 3.56% 1,511,020 3.42% 103.1 Credit, Suretyship and Financial Loss 752,256 1.83% 1,225,835 2.77% 163.0 Other 392,195 0.95% 410,626 0.93% 104.7 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 25,764,357 62.53% 27,288,430 61.76% 105.9 LIFE 15,437,561 37.47% 16,897,314 38.24% 109.5

TOTAL 41,201,918 100.00% 44,185,744 100.00% 107.2

Insurance and Reinsurance Companies 151 Insurance and Reinsurance Companies Code 13

GRAWE Hrvatska d.d.

Regional Centre

10000 Zagreb, Ulica grada Vukovara 5 OSIJEK Ribarska 10, HR-31000 Osijek phone +385 31/22 36 00 fax +385 31/28 31 66 Company reg. No: MB 0409880 Company ID No: OIB 28406115764 PULA Mletačka 12, HR-52100 Pula phone +385 52/30 00 13 fax +385 52/30 00 23

Phone RIJEKA Prolaz M. K. Kozulić 1, HR-51000 Rijeka +385 1/ 30 34 000 phone +385 51/32 56 60 fax +385 51/32 56 78 fax +385 51/32 56 79 SPLIT Sinjska 5, HR-21000 Split Fax phone +385 21/32 35 40 fax +385 21/36 20 04 +385 1/ 30 34 500

www.grawe.hr [email protected]

Ownership structure: foreign legal persons 100% (Grazer Wechselseitige Vers. AG Graz)

Chairman of the Management Board: Igor Pureta, MBA

Members of the Management Board: Gerald Gröstenberger, M.Sc., MBA Nataša Kapetanović

Chairman of the Supervisory Board: Othmar Ederer, D.Sc.

Employees as at 31 December 2011: 669 Company Registration: Branches: Commercial Court in Zagreb under Fi-13420/93 of 19 July 1993 and corporate name Prima 2 osiguranje d.d., Court Register No. MBS 080042838 Offices: 50 Supervisory Authorisation: UP/I-453-02/07-30/13, 326-112-07-8 of 11 October 2007

Transaction Account Number: Hypo-Alpe-Adria-Bank d.d. Zagreb 2500009-1101007348 - Non-Life Hypo-Alpe-Adria-Bank d.d. Zagreb 2500009-1301132621 - Life

152 12,000 16,000 20,000 24,000 28,000 32,000 36,000 40,000 8,000 4,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 4,047,037 7.55% 3,757,497 7.11% 92.8 Health 487,119 0.91% 474,014 0.90% 97.3 Motor Casco 2,041,051 3.81% 1,777,550 3.37% 87.1 Other Casco 143,689 0.27% 149,499 0.28% 104.0 Property 5,885,117 10.98% 6,070,109 11.49% 103.1 Motor TPL 7,213,687 13.46% 6,853,218 12.97% 95.0 Other Liability 389,274 0.73% 422,676 0.80% 108.6 Credit, Suretyship and Financial Loss 53,794 0.10% 51,636 0.10% 96.0 Other 168,353 0.31% 183,975 0.35% 109.3 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 20,429,120 38.12% 19,740,174 37.37% 96.6 LIFE 33,158,921 61.88% 33,080,546 62.63% 99.8

TOTAL 53,588,041 100.00% 52,820,721 100.00% 98.6

Insurance and Reinsurance Companies 153 Insurance and Reinsurance Companies Code 11

Helios Vienna Insurance Group d.d. za osiguranje

REGIONALNA HEAD OFFICE

10000 Zagreb, Poljička ulica 5 OSIJEK [email protected] Stjepana Radića 10 HR-31000 Osijek Company reg. No: MB 3768309 +385 31/21 09 56 +385 31/21 09 55 Company ID No: OIB 59369087232 RIJEKA [email protected] Žrtava fašizma 1 HR-51000 Rijeka +385 51/21 28 31 +385 51/21 31 69 Phone SPLIT +385 1/ 61 16 766 [email protected] Poljička cesta 39 HR-21000 Split +385 21/46 00 07 +385 21/46 10 11 Toll Free Info Phone VARAŽDIN 0800 2580 [email protected] Braće Radić 6 HR-42000 Varaždin Fax +385 42/21 51 00 +385 42/21 43 23 ZAGREB +385 1/ 61 16 951 [email protected] Poljička 5 HR-10000 Zagreb +385 1/46 90 989 +385 1/46 90 957 www.helios.hr [email protected]

Ownership structure: foreign legal persons 100%

Chairman of the Management Board: Walter Leonhartsberger

Members of the Management Board: Ksenija Latin, Azem Raković

Chairman of the Supervisory Board: Peter Hagen

Company Registration: Employees as at 31 December 2011: Commercial Court in Zagreb under Fi-9351/92 on 9 September 1991, 399 Court Register No. MBS 080003004 Regional Head Offices:

5 Supervisory Authorisation: Offices: UP/I-453-02/07-30/24, 326-112-07-9 of 6 December 2007 34

On 11 June 2010 the merger of Cosmopolitan Life Vienna Insurance Group d.d. into Helios Vienna Insurance Group d.d. was entered into the Court Register by decision of the Commercial Court in Zagreb No. Tt-10/3482-4.

Transaction Account Number: Erste & Steiermärkische Bank d.d. 2402006-1100352039 - Non-Life Erste & Steiermärkische Bank d.d. 2402006-1300001807 - Life

154 10,000 12,000 14,000 16,000 18,000 20,000 4,000 6,000 8,000 2,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 Note: ** Data for Helios Vienna Insurance Group d.d. include data of the company 100.00 Cosmopolitan Life Vienna Insurance Group 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

d.d. that was taken over by Helios VIG d.d. 0 % on 11 June 2010

* 2011 Non-Life GWP includes co-insurance premiums amounting to €6,382 2011 2010 Non-Life GWP includes co-insurance 2010 premiums amounting to €23,613

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 627,842 2.67% 696,369 2.94% 110.9 Health - 0.00% - 0.00% - Motor Casco 876,179 3.72% 829,155 3.50% 94.6 Other Casco 96,403 0.41% 90,216 0.38% 93.6 Property 894,095 3.80% 951,523 4.02% 106.4 Motor TPL 3,527,264 14.98% 4,327,347 18.27% 122.7 Other Liability 193,568 0.82% 199,353 0.84% 103.0 Credit, Suretyship and Financial Loss 7,190 0.03% 5,234 0.02% 72.8 Other 19,960 0.08% 24,995 0.11% 125.2 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 6,242,500 26.52% 7,124,192 30.07% 114.1 LIFE 17,296,984 73.48% 16,566,268 69.93% 95.8

TOTAL 23,539,484 100.00% 23,690,459 100.00% 100.6

Insurance and Reinsurance Companies 155 Insurance and Reinsurance Companies Code 30

Hrvatska osiguravajuća kuća d.d.

Regional Head Office

10000 Zagreb, Ivana Lučića 2a OSIJEK Ivana Gundulića 128, HR-31000 Osijek Company reg. No: MB 1578740 phone +385 31/374 021 fax +385 31/374 030 Company ID No: OIB 00432869176 RIJEKA Corrada Ilijaschia 22, HR-51000 Rijeka phone +385 51/686 670 fax +385 51/686 679 Phone SPLIT +385 1/ 53 92 500 Boktuljin put bb, HR-21000 Split phone +385 21/36 82 20 fax +385 21/36 82 21 Fax VARAŽDIN +385 1/ 53 92 520 Optujska 25, HR-42000 Varaždin phone +385 42/660 500 fax +385 42/660 515 ZADAR www.hok-osiguranje.hr Ante Starčevića bb, HR-23000 Zadar [email protected] phone +385 23/628 710 fax +385 23/628 715 ZAGREB Ivana Lučića 2a (Eurotower), HR-10000 Zagreb Ownership structure: phone +385 1/53 92 500 fax +385 1/53 92 520 domestic legal persons 100%

Chairman of the Management Board: Hrvoje Pezić

Members of the Management Board: Ljilja Vasilj Starčić

Chairman of the Supervisory Board: Marijan Kostrenčić

Employees as at 31 December 2011: 256 Regional Head Offices: 6 Offices: 141 Company Registration: Commercial Court in Zagreb under Tt-00/6668-2 of 18 July 2001, Court Register No. MBS 080401248

Supervisory Authorisation: UP/I-453-02/07-30/32 and UP/I-453-02/07-30/21 of 15 March 2007

Transaction Account Number: Zagrebačka banka d.d. Zagreb 2360000-1101386914

156 10,000 12,000 14,000 16,000 18,000 20,000 4,000 6,000 8,000 2,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 100,00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 10,00 20,00 30,00 40,00 50,00 60,00 70,00 80,00 90,00 0 0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 673,835 3.03% 758,070 3.19% 112.5 Health 91,103 0.41% 92,814 0.39% 101.9 Motor Casco 3,976,702 17.87% 3,428,300 14.43% 86.2 Other Casco 156,190 0.70% 163,617 0.69% 104.8 Property 942,984 4.24% 952,125 4.01% 101.0 Motor TPL 14,937,059 67.11% 16,894,673 71.09% 113.1 Other Liability 1,214,623 5.46% 1,235,950 5.20% 101.8 Credit, Suretyship and Financial Loss 209,365 0.94% 187,293 0.79% 89.5 Other 55,662 0.25% 52,003 0.22% 93.4 Legal Expenses 188 0.00% 67 0.00% 35.7

ALL NON-LIFE 22,257,711 100.00% 23,764,912 100.00% 106.8 LIFE - 0.00% - 0.00% -

TOTAL 22,257,711 100.00% 23,764,912 100.00% 106.8

Insurance and Reinsurance Companies 157 Insurance and Reinsurance Companies Code 43

Hrvatsko kreditno osiguranje d.d.

10000 Zagreb, Bednjanska 14 Company reg. No: MB 02603039 Company ID No: OIB 46406681143

Phone +385 1/ 45 91 542 Fax +385 1/ 61 70 063

www.hkosig.hr [email protected]

Ownership structure: domestic legal persons 51% (Croatian Bank for Reconstruction and Development) foreign legal persons 49% (OeKB Südosteuropa Holding Ges.mb.H))

Chairman of the Management Board: Edvard Ribarić

Members of the Management Board: Anton Ludwig Steffko

Chairman of the Supervisory Board: Branimir Berković

Company Registration: Employees as at 31 December 2011: Commercial Court in Zagreb under Tt-09/14661-2 of 18 January 2010, Court Register No. MBS 9 080719006

Supervisory Authorisation: UP/I-453-02/08-30/11, 326-112-09-34 of 24 September 2009

Croatian Credit Insurance Ltd. was granted supervisory authorisation to carry on credit insurance on 24 September 2009 and commenced operating on 18 January 2010.

Transaction Account Number: Erste & Steiermärkische Bank d.d. 2402006-1100567500

158 1,000 200 300 400 500 600 700 800 900 100

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident --0.00% 0.00% - Health - 0.00% - 0.00% - Motor Casco - 0.00% - 0.00% - Other Casco - 0.00% - 0.00% - Property - 0.00% - 0.00% - Motor TPL - 0.00% - 0.00% - Other Liability - 0.00% - 0.00% - Credit, Suretyship and Financial Loss 208,633 100.00% 899,531 100.00% 431.2 Other - 0.00% - 0.00% - Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 208,633 100.00% 899,531 100.00% 431.2 LIFE - 0.00% - 0.00% -

TOTAL 208,633 100.00% 899,531 100.00% 431.2

Insurance and Reinsurance Companies 159 Insurance and Reinsurance Companies Code 44

Izvor osiguranje d.d.

Regional Head Office

10000 Zagreb, Trpinjska 9 ZAGREB Trpinjska 9 , HR-31000 Zagreb Company reg. No: MB 2688999 phone +385 1/38 39 350 fax +385 1/38 39 296 Company ID No: OIB 02951724955 SPLIT Put Brodarice 6, HR-21000 Split phone +385 21/689 980 fax +385 21/689 989 Phone ZADAR Dr. Franje Tuđmana 46, HR-52100 Zadar +385 1/ 38 39 350 phone +385 23/305 081 fax +385 23/305 130 Fax +385 1/ 338 34 296 RIJEKA Riva Boduli 1, HR-51000 Rijeka phone +385 51/689 760 fax +385 51/689 762

www.izvorosiguranje.hr [email protected]

Ownership structure: domestic natural persons 100%

Chairwoman of the Management Board: Ivana Andabak

Members of the Management Board: Denis Duralija

Chairman of the Supervisory Board: Jako Andabak

Employees as at 31 December 2011: 66 Company Registration:

Regional Head Offices: Commercial Court in Zagreb under Tt-10/11629-2 of 12 October 2010, 4 Court Register No. MBS 080743014

Supervisory Authorisation: Number of Branches: UP/I-453-02/10-30/2, 326-112-10-20 of 23 September 2010 10

Izvor Insurance Co. Ltd. was granted supervisory authorisation to carry on non-life insurance by the Croatian Financial Services Supervisory Agency on 23 September 2010 and commenced operating as from 1 January 2011.

Transaction Account Number: Zagrebačka banka d.d. Zagreb 2360000-1102167288

160 1,000 1,200 1,400 1,600 1,800 2,000 400 600 800 200

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 100,00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 10,00 20,00 30,00 40,00 50,00 60,00 70,00 80,00 90,00 0 0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident - 0.00% 142,044 5.67% - Health - 0.00% - 0.00% - Motor Casco - 0.00% 312,134 12.45% - Other Casco - 0.00% - 0.00% - Property - 0.00% 373,263 14.89% - Motor TPL - 0.00% 1,631,902 65.08% - Other Liability - 0.00% 47,458 1.89% - Credit, Suretyship and Financial Loss - 0.00% 4 0.00% - Other - 0.00% 535 0.02% - Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE - 0.00% 2,507,341 100.00% - LIFE - 0.00% - 0.00% -

TOTAL - 0.00% 2,507,341 100.00% -

Insurance and Reinsurance Companies 161 Insurance and Reinsurance Companies Code 06

Jadransko osiguranje d.d.

Branch Office

10000 Zagreb, Listopadska 2 DUBROVNIK [email protected] Iva Vojnovića 116, HR-20000 Dubrovnik Company reg. No: MB 3763536 phone +385 20/31 17 41 fax +385 20/42 66 60 Company ID No: OIB 94472454976 KOPRIVNICA [email protected] Križevačka 13, HR-48000 Koprivnica Phone phone +385 48/25 03 00 fax +385 48/25 03 33 OSIJEK +385 1/ 30 36 666 [email protected] Gundulićeva 5b, HR-31000 Osijek Fax phone +385 31/49 44 00 fax +385 31/49 44 50 +385 1/ 30 36 000 PULA [email protected] Industrijska 15c, HR-52100 Pula phone +385 52/53 06 00 fax +385 52/53 06 66 www.jadransko.hr RIJEKA [email protected] [email protected] Riva 8, HR-51000 Rijeka phone +385 51/31 34 61 fax +385 51/31 34 64 SISAK Ownership structure: [email protected] Ante Starčevića 5, HR-44000 Sisak domestic legal and natural persons 95% phone +385 44/52 44 94 fax +385 44/52 44 93 foreign legal persons 5% SPLIT [email protected] Varaždinska 54, HR-21000 Split phone +385 21/39 31 11 fax +385 21/39 31 83 Chairman of the Management Board: ŠIBENIK Goran Jurišić (until 30 June 2011 Sanja Ćorić, M.Sc.) š[email protected] Put Bioca 27, HR-22000 Šibenik phone +385 22/34 86 00 fax +385 22/34 86 39 ZADAR Members of the Management Board: [email protected] Jadranska cesta 72, HR-23000 Zadar Ante Jažo (until 30 June 2011 Goran Jurišić) phone +385 23/31 25 42 fax +385 23/34 39 06 ZAGREB Chairman of the Supervisory Board: [email protected] Listopadska 2, HR-10000 Zagreb phone +385 1/30 36 666 fax +385 1/30 36 000 Žarko Bubalo

Employees as at 31 December 2011: 817 Branches: 10

Company Registration: Commercial Court in Split, Fi-3424/9 of 21 August 1991, Court Register No. MBS 060006216

Supervisory Authorisation: UP/I-453-02/07-30/15, 326-112-07-11 of 6 December 2007

Transaction Account Number: SG Splitska banka d.d. 2330003-1100030041 Kreditna banka Zagreb d.d. 2481000-1100105162

162 20,000 30,000 40,000 50,000 60,000 70,000 10,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 Note: 2011 Non-Life GWP includes co-insurance premiums amounting to €24,864 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

2010 Non-Life GWP includes co-insurance 0 % premiums amounting to €19,743

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 8,448,428 9.79% 7,860,276 9.13% 93.0 Health 326,474 0.38% 386,774 0.45% 118.5 Motor Casco 9,889,668 11.46% 8,947,631 10.39% 90.5 Other Casco 188,991 0.22% 210,763 0.24% 111.5 Property 4,351,077 5.04% 4,592,721 5.33% 105.6 Motor TPL 60,998,368 70.69% 60,847,081 70.65% 99.8 Other Liability 1,929,324 2.24% 2,697,444 3.13% 139.8 Credit, Suretyship and Financial Loss 94,237 0.11% 517,805 0.60% 549.5 Other 62,697 0.07% 63,570 0.07% 101.4 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 86,289,264 100.00% 86,124,064 100.00% 99.8 LIFE - 0.00% - 0.00% -

TOTAL 86,289,264 100.00% 86,124,064 100.00% 99.8

Insurance and Reinsurance Companies 163 Insurance and Reinsurance Companies Code 39

KD životno osiguranje d.d.

10000 Zagreb, Donje Svetice 46c Company reg. No: MB 2374234 Company ID No: OIB 01695526582

Phone +385 1/62 85 101 Fax +385 1/61 97 456

www.kd-life.hr [email protected]

Ownership structure: foreign legal persons 100%

Chairman of the Management Board: Neven Tišma

Members of the Management Board: Andreja Radić

Chairwoman of the Supervisory Board: Maja Benko

Employees as at 31 December 2011: 76 Offices: 4

Company Registration: Commercial Court in Zagreb under Tt-08/5595-2 of 5 May 2008, Court Register No. MBS 080655516

Supervisory Authorisation: UP/I-453-02/07-30/65, 326-112-08-13 of 17 April 2008

KD Life Insurance Co. Ltd. was granted supervisory authorisation to carry on life insurance business on 17 April 2008 and commenced operating on 5 May 2008.

Transaction Account Number: Privredna banka Zagreb d.d. 2340009-1110327825

164 1,000 1,200 1,400 1,600 1,800 2,000 400 600 800 200

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident - 0.00% - 0.00% - Health - 0.00% - 0.00% - Motor Casco - 0.00% - 0.00% - Other Casco - 0.00% - 0.00% - Property - 0.00% - 0.00% - Motor TPL - 0.00% - 0.00% - Other Liability - 0.00% - 0.00% - Credit, Suretyship and Financial Loss - 0.00% - 0.00% - Other - 0.00% - 0.00% - Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE - 0.00% - 0.00% - LIFE 1,109,449 100.00% 1,650,232 100.00% 148.7

TOTAL 1,109,449 100.00% 1,650,232 100.00% 148.7

Insurance and Reinsurance Companies 165 Insurance and Reinsurance Companies Code 21

Kvarner Vienna Insurance Group d.d. za osiguranje

Branch Office

51000 Rijeka, Osječka 46 RC RIJEKA/ISTRA Company reg. No: MB 1159941 A. K. Miošića 1, HR-52100 Pula phone +385 52/22 34 22 fax +385 52/49 44 11 Company ID No: OIB 52848403362 Osječka 46, HR-51000 Rijeka phone +385 51/49 49 01 fax +385 51/22 79 71 Head Office Rijeka RC DALMACIJA Phone Mažuranićevo šetalište 53a, HR-21000 Split +385 51/ 22 78 96 phone +385 21/54 11 80 fax +385 21/54 11 90 Fax RC ZAGREB +385 51/ 22 79 71 Slovenska 24, HR-10000 Zagreb phone +385 1/37 18 685 fax +385 1/37 18 601 PC OSIJEK Head Office Zagreb A. Reisnera 113a, HR-31000 Osijek Phone phone +385 31/25 03 60 fax +385 31/49 23 76 +385 1/ 37 18 600 PC VARAŽDIN Vladimira Nazora 2, HR-42000 Varaždin Fax phone +385 42/20 16 60 fax +385 42/20 16 62 +385 1/ 37 18 603

www.kvarner-vig.hr [email protected]

Ownership structure: domestic legal and natural persons 1.25% foreign legal persons 98.75%

Members of the Management Board: Harald Riener Mario Kovač, Deputy Board Member

Chairman of the Supervisory Board: Peter Hagen

Employees as at 31 December 2011: 638 Company Registration: Branches: Commercial Court in Zagreb under Tt-95/8442-2 of 28 December 1995, 3 Regional Centres and 2 Sales Centres currently registered at the Commercial Court in Rijeka, Court Register No. MBS 080026313 Offices: 21 Supervisory Authorisation: Agencies: UP/I-453-02/07-30/16, 326-112-07-16 of 6 December 2007 63

Transaction Account Number: Erste & Steiermärkische Bank d.d. 2402006-1100291680 - Non-Life Erste & Steiermärkische Bank d.d. 2402006-1300000187- Life

166 10,000 15,000 20,000 25,000 30,000 5,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100,00 100.00 10,00 20,00 30,00 40,00 50,00 60,00 70,00 80,00 90,00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 2,600,265 3.78% 2,112,738 3.51% 81.3 Health 67,560 0.10% 36,340 0.06% 53.8 Motor Casco 5,622,581 8.17% 4,096,620 6.80% 72.9 Other Casco 1,418,755 2.06% 1,387,674 2.30% 97.8 Property 10,176,942 14.79% 8,547,832 14.18% 84.0 Motor TPL 17,384,794 25.27% 15,344,606 25.46% 88.3 Other Liability 1,600,033 2.33% 1,887,065 3.13% 117.9 Credit, Suretyship and Financial Loss 700,678 1.02% 692,010 1.15% 98.8 Other 782,057 1.14% 1,033,812 1.72% 132.2 Legal Expenses 3,887 0.01% 2,965 0.00% 76.3

ALL NON-LIFE 40,357,551 58.67% 35,141,662 58.30% 87.1 LIFE 28,435,385 41.33% 25,133,188 41.70% 88.4

TOTAL 68,792,936 100.00% 60,274,850 100.00% 87.6

Insurance and Reinsurance Companies 167 Insurance and Reinsurance Companies Code 15

Merkur osiguranje d.d.

Branch Office

10000 Zagreb, Ulica kneza Ljudevita Posavskog 31 ČAKOVEC Company reg. No: MB 1165011 [email protected] Matice Hrvatske 6, HR-40000 Čakovec phone +385 40/31 48 50 fax +385 40/31 48 51 Company ID No: OIB 08937835435 OSIJEK [email protected] J. J. Strossmayera 4, HR-31000 Osijek Phone phone +385 31/21 54 44 fax +385 31/21 54 45 PULA +385 1/ 63 08 333 [email protected] Vrtlarska 7, HR-52100 Pula Fax phone +385 52/38 44 34 fax +385 52/38 44 35 +385 1/ 61 57 130 RIJEKA [email protected] Dolac 7, HR-51000 Rijeka phone +385 51/32 28 25 fax +385 51/21 18 25 www.merkur.hr SPLIT [email protected] [email protected] Poljana kneza Trpimira 4-5, HR-21000 Split phone +385 21/32 27 97 fax +385 21/32 27 98 VARAŽDIN Ownership structure: [email protected] Braće Radić 1, HR-42000 Varaždin foreign legal persons 100% phone +385 42/30 32 50 fax +385 42/30 32 51 (Merkur Versicherung AG Graz)

Chairman of the Management Board: Milan Krizmanić

Members of the Management Board: Zdenka Rizman, Dalibor Đurkan (as from 1 December 2011)

Chairman of the Supervisory Board: Terence John Taylor (until 13 October 2011 Wolfgang Krug, M.Sc.)

Employees as at 31 December 2011: 250 Branches 6 Company Registration: Sales Offices: Commercial Court in Zagreb under Tt-96/19-2 of 11 January 1996, 30 Court Register No. MBS 080030150

Supervisory Authorisation: 567-02/95-1 of 12 December 1995; UP/I-453-02/07-30/16, 326-112-07-16 of 6 December 2007

Transaction Account Number: Raiffeisenbank Austria d.d. Zagreb 2484008-1100220511 - Non-Life SG Splitska banka d.d. 2330003-1100204992 - Life

168 12,000 16,000 20,000 24,000 28,000 32,000 36,000 40,000 8,000 4,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 662,873 1.70% 737,559 1.93% 111.3 Health 190,068 0.49% 180,502 0.47% 95.0 Motor Casco - 0.00% - 0.00% - Other Casco 0.00% 0.00% 0.0 Property 2,353,071 6.02% 2,213,561 5.78% 94.1 Motor TPL - 0.00% - 0.00% - Other Liability 719,203 1.84% 644,656 1.68% 89.6 Credit, Suretyship and Financial Loss 45,975 0.12% 36,746 0.10% 79.9 Other 206,017 0.53% 190,916 0.50% 92.7 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 4,177,207 10.69% 4,003,941 10.45% 95.9 LIFE 34,885,173 89.31% 34,305,350 89.55% 98.3

TOTAL 39,062,380 100.00% 38,309,291 100.00% 98.1

Insurance and Reinsurance Companies 169 Insurance and Reinsurance Companies Code 42

Société Générale osiguranje d.d.

Branch Office

10000 Zagreb, Ulica grada Vukovara 284 A ZAGREB Company reg. No: MB 02494191 Ulica grada Vukovara 284 A, HR-10000 Zagreb phone +385 1/63 27 944 fax +385 1/63 27 497 Company ID No: OIB 98164456048

Phone +385 1/ 63 27 944 Fax +385 1/ 63 27 497

www.sgosiguranje.hr [email protected]

Ownership structure: domestic legal persons 49% foreign legal persons 51%

Chairman of the Management Board: Gael Loaec

Members of the Management Board: Mladen Gavrančić

Chairman of the Supervisory Board: Pascal Bied-Charreton

Employees as at 31 December 2011: 10 Branches 1 Company Registration: Commercial Court in Zagreb under Tt-09/1723-2 of 18 March 2009, Court Register No. MBS 080690419

Supervisory Authorisation: UP/I-453-02/07-30/64, 326-112-08-35 of 23 December 2008

Société Générale Insurance Co. Ltd. was granted supervisory authorisation to carry on life insurance business on 23 December 2008 and commenced operating on 1 April 2009.

Transaction Account Number: SG Splitska banka d.d. 2330003-1100411676

170 1,000 2,000 4,000 5,000 6,000 3,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident - 0.00% - 0.00% - Health - 0.00% - 0.00% - Motor Casco - 0.00% - 0.00% - Other Casco - 0.00% - 0.00% - Property - 0.00% - 0.00% - Motor TPL - 0.00% - 0.00% - Other Liability - 0.00% - 0.00% - Credit, Suretyship and Financial Loss - 0.00% - 0.00% - Other - 0.00% - 0.00% - Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE - 0.00% - 0.00% - LIFE 3,956,521 100.00% 5,083,692 100.00% 128.5

TOTAL 3,956,521 100.00% 5,083,692 100.00% 128.5

Insurance and Reinsurance Companies 171 Insurance and Reinsurance Companies Code 19

Sunce osiguranje d.d.

Branch Office

10000 Zagreb, Trnjanska cesta 108 OSIJEK [email protected] Šamačka 1, HR-31000 Osijek Company reg. No: MB 1220306 phone +385 31/21 16 78 fax +385 31/21 13 50 Company ID No: OIB 12012147571 RIJEKA [email protected] Riva 8, HR-51000 Rijeka Phone phone +385 51/50 10 04 fax +385 51/50 10 09 SPLIT +385 1/ 62 92 600 [email protected] Varaždinska 54, HR-21000 Split Fax phone +385 21/45 37 40 fax +385 21/45 37 55 +385 1/ 62 92 869 ZADAR [email protected] Obala Kneza Branimira 5, HR-23000 Zadar phone +385 23/39 61 14 fax +385 23/39 61 09 www.sunce.hr ZAGREB [email protected] [email protected] Trnjanska cesta 108, HR-10000 Zagreb phone +385 1/62 92 600 fax +385 1/62 92 869

Ownership structure: domestic legal persons 68.72% domestic natural persons 31.28%

Chairwoman of the Management Board: Ivana Bratanić

Members of the Management Board: Nikica Mia Vukšić, M.Sc.

Chairwoman of the Supervisory Board: Alenka Pezo

Employees as at 31 December 2011: 143 Branches: 5 Offices: 10

Company Registration: Commercial Court in Zagreb under Tt-96/2056-2 on 30 August 1996, Court Register No. MBS 080091459

Supervisory Authorisation: UP/I-453-02/07-30/18, 326-112-07-10 of 6 December 2007

Transaction Account Number: Kreditna banka Zagreb d.d. 2481000-1100105120

172 10,000 12,500 15,000 2,500 5,000 7,500

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 Note: 2011 Non-Life GWP includes co-insurance premiums amounting to €11,417. 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

2010 Non-Life GWP includes co-insurance 0 % premiums amounting to €12,843

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 671,391 2.82% 737,274 3.18% 109.8 Health 14,494,593 60.95% 13,874,007 59.78% 95.7 Motor Casco 875,210 3.68% 819,282 3.53% 93.6 Other Casco 43,916 0.18% 98,546 0.42% 224.4 Property 1,589,234 6.68% 1,200,905 5.17% 75.6 Motor TPL 3,809,886 16.02% 3,913,959 16.87% 102.7 Other Liability 560,979 2.36% 778,942 3.36% 138.9 Credit, Suretyship and Financial Loss 184,331 0.78% 131,723 0.57% 71.5 Other 1,551,134 6.52% 1,652,343 7.12% 106.5 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 23,780,674 100.00% 23,206,981 100.00% 97.6 LIFE - 0.00% - 0.00% -

TOTAL 23,780,674 100.00% 23,206,981 100.00% 97.6

Insurance and Reinsurance Companies 173 Insurance and Reinsurance Companies Code 02

Triglav osiguranje d.d.

Branch Office

10000 Zagreb, Antuna Heinza 4 ČAKOVEC [email protected] Žrtava fašizma 1, HR-40000 Čakovec Company reg. No: MB 0253359 phone +385 40/63 06 00 fax +385 40/63 06 02 Company ID No: OIB 29743547503 KOPRIVNICA [email protected] Taraščice 20, HR-48000 Koprivnica Phone phone +385 48/25 05 00 fax +385 48/25 05 05 OSIJEK +385 1/ 56 32 777 [email protected] Trg Lava Mirskog 3, HR-31000 Osijek Fax phone +385 31/25 12 30 fax +385 31/25 12 33 +385 1/ 56 32 709 PULA [email protected] Trierska 4, HR-52100 Pula phone +385 52/52 64 00 fax +385 52/21 17 52 www.triglav-osiguranje.hr RIJEKA [email protected] [email protected] Marije Krucifikse Kozulić 3, HR-51000 Rijeka phone +385 51/35 83 33 fax +385 51/33 69 35 SPLIT Ownership structure: [email protected] Lička 4, HR-21000 Split Triglav INT d.d., Ljubljana 99.76% phone +385 21/31 43 33 fax +385 21/31 43 36 Other 0.24% VARAŽDIN [email protected] Alojzija Stepinca 7, HR-42000 Varaždin phone +385 42/21 18 33 fax +385 42/21 19 33 Chairman of the Management Board: ZADAR Marin Matijaca, univ.spec.actuar.math. [email protected] Obala kneza Branimira 9, HR-23000 Zadar phone +385 23/24 41 77 fax +385 23/24 41 79 ZAGREB Members of the Management Board: [email protected] Republike Austrije 1, HR-10000 Zagreb Igor Bratina, univ.dipl.iur., Vanja Nadali, MBA phone +385 1/34 44 111 fax +385 1/37 71 266

Authorized Representative (Procurist): Boštjan Vovk, univ.dipl.ing (since 6 March 2012)

Chairman of the Supervisory Board: Igor Stebernak (until 5 March 2012 Boštjan Vovk)

Employees as at 31 December 2011: 518 Company Registration: Branches: Commercial Court in Rijeka, Fi-1-13780-00 of 26 July 1993, 9 Court Register No. MBS 040033293

Supervisory Authorisation: 513-04/92/3 of 14 December 1992; UP/I-453-02/07-30/33, 326-112-08-13 of 17 July 2008

Transaction Account Number: Erste & Steiermärkische bank d.d. 2402006-1100121953 - Non-Life Zagrebačka banka d.d. 2360000-1101444087 – Life Zagrebačka banka d.d. 2360000-1300057006 – Investment Life

174 10,000 12,000 14,000 16,000 18,000 20,000 4,000 6,000 8,000 2,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 2,284,042 4.19% 2,064,292 3.88% 90.4 Health 162,325 0.30% 135,593 0.25% 83.5 Motor Casco 6,204,408 11.37% 5,459,927 10.25% 88.0 Other Casco 468,585 0.86% 518,810 0.97% 110.7 Property 12,967,741 23.77% 13,247,385 24.87% 102.2 Motor TPL 16,768,714 30.74% 16,939,309 31.80% 101.0 Other Liability 2,573,202 4.72% 2,788,770 5.24% 108.4 Credit, Suretyship and Financial Loss 1,824,024 3.34% 1,961,507 3.68% 107.5 Other 1,156,130 2.12% 495,210 0.93% 42.8 Legal Expenses 43,849 0.08% 33,523 0.06% 76.5

ALL NON-LIFE 44,453,020 81.50% 43,644,326 81.94% 98.2 LIFE 10,092,704 18.50% 9,616,463 18.06% 95.3

TOTAL 54,545,724 100.00% 53,260,789 100.00% 97.6

Insurance and Reinsurance Companies 175 Insurance and Reinsurance Companies Code 26

UNIQA osiguranje d.d.

10000 Zagreb, Savska cesta 106 Company reg. No: MB 1446452 Company ID No: OIB 75665455333

Phone +385 1/ 63 24 200 Fax +385 1/ 63 24 250

www.uniqa.hr [email protected]

Ownership structure: foreign legal persons 80% (UNIQA International Versicherungs-Holding AG) EBRD (European Bank for Reconstruction and Development) 20%

Chairwoman of the Management Board: Saša Krbavac

Members of the Management Board: Tatjana Račić-Žlibar

Chairman of the Supervisory Board: Wolfgang Kindl (until 23 March 2012 Gottfried Karl Wanitschek, D.Sc.)

Employees as at 31 December 2011: 416 Sales Offices: Company Registration: 55 Commercial Court in Zagreb under Tt-99/2409-2 of 3 June 1999, Court Register No. MBS 080297140

Supervisory Authorisation: 453-02/07-30/02, 326-112-07-6 of 11 October 2007

Transaction Account Number: Raiffeisenbank Austria d.d. Zagreb 2484008-1100716564 - Non-Life Raiffeisenbank Austria d.d. Zagreb 2484008-1300068480 - Life

176 10,000 12,000 14,000 16,000 18,000 20,000 4,000 6,000 8,000 2,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 1,511,393 4.68% 2,241,988 7.13% 148.3 Health 1,226,805 3.80% 989,081 3.15% 80.6 Motor Casco 2,071,531 6.42% 1,986,547 6.32% 95.9 Other Casco 552,489 1.71% 561,565 1.79% 101.6 Property 2,789,292 8.64% 2,969,724 9.45% 106.5 Motor TPL 6,361,219 19.71% 7,833,402 24.92% 123.1 Other Liability 662,958 2.05% 716,311 2.28% 108.0 Credit, Suretyship and Financial Loss 151,812 0.47% 178,925 0.57% 117.9 Other 443,141 1.37% 387,223 1.23% 87.4 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 15,770,641 48.86% 17,864,766 56.84% 113.3 LIFE 16,506,960 51.14% 13,565,655 43.16% 82.2

TOTAL 32,277,601 100.00% 31,430,420 100.00% 97.4

Insurance and Reinsurance Companies 177 Insurance and Reinsurance Companies Code 37

VELEBIT osiguranje d.d.

Regional Centre

10000 Zagreb, Savska 144a CENTAR Ul. Petra Zrinskog 6a HR-48260 Križevci Company reg. No: MB 2269937 phone +385 48/27 10 23 fax +385 48/27 10 16 Company ID No: OIB 42098054984 EAST 1 Ul. Hrvatske Republike 31 BCII HR-31000 Osijek Phone phone +385 31/49 52 40 fax +385 31/49 52 49 EAST 2 +385 1/ 66 66 300 Ul. Matije Mesića HR-35101 Slavonski Brod Fax phone +385 35/49 21 90 fax +385 35/49 21 99 +385 1/ 66 66 299 SOUTH Ul. slobode 35 HR-21000 Split phone +385 21/49 23 60 fax +385 21/49 23 69 www.velebit-osiguranje.hr NORTH [email protected] Trg slobode 6 HR-48000 Koprivnica phone +385 48/49 24 00 fax +385 48/49 24 02 ZAGREB Ownership structure: Kovinska 9 HR-10133 Zagreb domestic legal and natural persons 100% phone +385 1/34 50 194 fax +385 1/34 50 199

Chairman of the Management Board: Dražen Kulić

Members of the Management Board: Krešimir Vrbić

Chairman of the Supervisory Board: Milan Viršek

Employees as at 31 December 2011: 211 Branches: 8 Offices: 38

Company Registration: Commercial Court in Zagreb under Tt-07/3074-5 on 10 September 2007, Court Register No. MBS 080623108

Supervisory Authorisation: UP/I-453-02/07-30/36, 326-07-112-22 of 23 August 2007 VELEBIT Insurance Ltd. commenced insurance business on 1 January 2008.

Transaction Account Number: Podravska banka d.d. 2386002-1110063443

178 1,000 2,000 4,000 5,000 6,000 3,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 359,824 4.29% 338,490 3.75% 94.1 Health - 0.00% - 0.00% - Motor Casco 1,564,591 18.66% 1,329,243 14.73% 85.0 Other Casco 85,380 1.02% 61,650 0.68% 72.2 Property 842,972 10.05% 1,016,461 11.26% 120.6 Motor TPL 5,192,452 61.93% 5,902,658 65.39% 113.7 Other Liability 238,965 2.85% 291,538 3.23% 122.0 Credit, Suretyship and Financial Loss 3,515 0.04% 2,277 0.03% 64.8 Other 96,046 1.15% 84,459 0.94% 87.9 Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 8,383,746 100.00% 9,026,775 100.00% 107.7 LIFE - 0.00% - 0.00% -

TOTAL 8,383,746 100.00% 9,026,775 100.00% 107.7

Insurance and Reinsurance Companies 179 Insurance and Reinsurance Companies Code 38

VELEBIT životno osiguranje d.d.

Regional Centre

10000 Zagreb, Savska 144a CENTAR Ul. Petra Zrinskog 6a HR-48260 Križevci Company reg. No: MB 2269929 phone +385 48/27 10 23 fax +385 48/27 10 16 Company ID No: OIB 69568343122 EAST 1 Ul. Hrvatske Republike 31 BCII HR-31000 Osijek Phone phone +385 31/49 52 40 fax +385 31/49 52 49 EAST 2 +385 1/ 66 66 200 Ul. Matije Mesića HR-35101 Slavonski Brod Fax phone +385 35/49 21 90 fax +385 35/49 21 99 +385 1/ 66 66 299 SOUTH Ul. slobode 35 HR-21000 Split phone +385 21/49 23 60 fax +385 21/49 23 69 www.velebit-osiguranje.hr NORTH [email protected] Trg slobode 6 HR-48000 Koprivnica phone +385 48/49 24 00 fax +385 48/49 24 02 ZAGREB Ownership structure: Kovinska 9 HR-10133 Zagreb domestic legal and natural persons 100% phone +385 1/34 50 194 fax +385 1/34 50 199

Chairman of the Management Board: Tibor Kralj

Members of the Management Board: Kristina Cvitanović-Zorić

Chairman of the Supervisory Board: Rok Moljk

Employees as at 31 December 2011: 166

Branches: 10 Offices: Company Registration: 26 Commercial Court in Zagreb under Tt-07/3067-5 of 10 September 2007, Court Register No. MBS 080623028

Supervisory Authorisation: UP/I-453-02/07-30/39, 326-07-112-22 of 23 August 2007

VELEBIT Life Insurance Co Ltd commenced insurance business on 1 December 2007.

Transaction Account Number: Podravska banka d.d. 2386002-1110063435

180 1,000 1,250 1,500 250 500 750

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident - 0.00% - 0.00% - Health - 0.00% - 0.00% - Motor Casco - 0.00% - 0.00% - Other Casco - 0.00% - 0.00% - Property - 0.00% - 0.00% - Motor TPL - 0.00% - 0.00% - Other Liability - 0.00% - 0.00% - Credit, Suretyship and Financial Loss - 0.00% - 0.00% - Other - 0.00% - 0.00% - Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE - 0.00% - 0.00% - LIFE 1,273,556 100.00% 1,077,282 100.00% 84.6

TOTAL 1,273,556 100.00% 1,077,282 100.00% 84.6

Insurance and Reinsurance Companies 181 Insurance and Reinsurance Companies Code 41

VICTORIA osiguranje d.d.

Branches

10000 Zagreb, Radnička cesta 80/16 ZAGREB Radnička cesta 80, HR-10000 Zagreb Company reg. No: MB: 2467143 phone +385 1/63 97 640 fax +385 1/63 97 688 Company ID No: OIB: 90874864964

Phone +385 1/ 63 97 640 Fax +385 1/ 63 97 688

www.victoria-osiguranje.hr [email protected]

Ownership structure: domestic legal persons 5% foreign legal persons 95%

Chairwoman of the Management Board: Ksenija Sanjković

Members of the Management Board: Ingo Lorenzoni, Petra Wallner

Chairman of the Supervisory Board: Harald Josef Londer

Employees as at 31 December 2011: Company Registration: 5 Commercial Court in Zagreb on 2 January 2009, Court Register No. MBS 080682187 Branches: 1 Supervisory Authorisation: UP/I-453-02/07-30/62, 326-112-08-46 of 4 December 2008 and UP/I-453-02/10-30/6, 326- 112-10-13 of 4 August 2010

VICTORIA Insurance Co. Ltd. was granted supervisory authorisation to carry on insurance business in the classes: Accident, Fire and Natural Forces and Other Damage to Property on 4 December 2008. On 4 August 2010 the Croatian Financial Services Supervisory Agency granted authorisation also for the following insurance classes: Health, Other Liability, Credit, Suretyship, Miscellaneous financial losses, Legal expenses and Travel insurance.

Transaction Account Number: Volksbank d.d. 2503007-1100054327

182 100 125 150 25 50 75 0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident 70,148 61.25% 116,075 64.09% 165.5 Health - 0.00% 2,339 1.29% - Motor Casco - 0.00% - 0.00% - Other Casco - 0.00% - 0.00% - Property 44,379 38.75% 62,693 34.62% 141.3 Motor TPL - 0.00% - 0.00% - Other Liability - 0.00% - 0.00% - Credit, Suretyship and Financial Loss - 0.00% - 0.00% - Other - 0.00% - 0.00% - Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE 114,527 100.00% 181,107 100.00% 158.1 LIFE - 0.00% - 0.00% -

TOTAL 114,527 100.00% 181,107 100.00% 158.1

Insurance and Reinsurance Companies 183 Insurance and Reinsurance Companies Code 40

VICTORIA životno osiguranje d.d.

10000 Zagreb, Radnička cesta 80/16 Company reg. No: MB 2401118 Company ID No: OIB 18136809551

Phone +385 1/ 63 97 640 Fax +385 1/ 63 97 688

www.victoria-osiguranje.hr [email protected]

Ownership structure: foreign legal persons 100%

Chairman of the Management Board: Žarko Fatović (as from 1 July 2012)

Member of the Management Board: Anica Gabrovec

Chairman of the Supervisory Board: Harald Josef Londer (as from 1 July 2012)

Employees as at 31 December 2011: 10

Company Registration: Commercial Court in Zagreb under Tt-08/8233-2 of 30 June 2008, Court Register No. MBS 080662433

Supervisory Authorisation: UP/I-453-02/07-30/63, 326-112-08-23 of 5 June 2008

VICTORIA Life Insurance Co. Ltd. was granted supervisory authorisation to carry on life insurance business on 5 June 2008 and commenced operating on 1 September 2008.

Transaction Account Number: Volksbank d.d. 2503007-1100052345

184 10,000 4,000 5,000 6,000 7,000 8,000 9,000 2,000 3,000 1,000

0 000 €

Accident 2011 2010

Health 2011 2010

Motor Casco 2011 2010

Other Casco 2011 2010

Property 2011 2010

Motor TPL 2011 2010

Other Liability 2011 2010

Credit, Suretyship and Financial Loss 2011 2010

Legal Expenses 2011 2010

Other 2011 2010

Life 2011 2010 100.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

0 %

2011 2010

Gross Written Premium by Class

INDEX €2010 € 2011 11/10 Accident - 0.00% - 0.00% - Health - 0.00% - 0.00% - Motor Casco - 0.00% - 0.00% - Other Casco - 0.00% - 0.00% - Property - 0.00% - 0.00% - Motor TPL - 0.00% - 0.00% - Other Liability - 0.00% - 0.00% - Credit, Suretyship and Financial Loss - 0.00% - 0.00% - Other - 0.00% - 0.00% - Legal Expenses - 0.00% - 0.00% -

ALL NON-LIFE - 0.00% - 0.00% - LIFE 6,935,362 100.00% 5,822,974 100.00% 84.0

TOTAL 6,935,362 100.00% 5,822,974 100.00% 84.0

Insurance and Reinsurance Companies 185 Insurance and Reinsurance Companies

Hrvatski nuklearni Pool GIU

10000 Zagreb, Ulica grada Vukovara 62

Company reg. No: MB 03249549 Members of the POOL as at 31 December 2011: Company ID No: OIB 33230998761 u Allianz Zagreb d.d.

Phone u Croatia Lloyd d.d. za reosiguranje +385 1/ 61 70 275 u Croatia osiguranje d.d. Fax +385 1/ 61 71 029 u Generali osiguranje d.d.

u Triglav osiguranje d.d. [email protected]

Management: Nikola Rendić-Miočević, Manager

Supervisory Board: Robert Stude, Chairman The POOL's Profit and Loss Account for 2011: · Total Income 2,129,813 €

Employees as at 31 December 2011: · Total Expenditure 2,124,727 € 4 Profit 5,087 €

POOL Capacity for 2011

Insurance - Domestic Risks € % Reinsurance - Foreign Risks € % CROATIA 4,500,000.00 63.83 4,500,000.00 63.83 CROATIA LLOYD 1,100,000.00 15.61 1,100,000.00 15.61 In accordance with the Memorandum of Association, the Members of the POOL jointly assume ALLIANZ ZAGREB 600,000.00 8.51 600,000.00 8.51 extraordinary risks with respect to the insurance, co-insurance and reinsurance of nuclear TRIGLAV 500,000.00 7.09 500,000.00 7.09 plants, i.e. domestic and foreign risks with regard to the exploitation of nuclear power for GENERALI 350,000.00 4.96 350,000.00 4.96 peacetime purposes.

Total 7,050,000.00 100.00 7,050,000.00 100.00 Company Registration: Commercial Court in Zagreb under Fi-7198/94, Court Register No. MBS 080096836

The Croatian Nuclear POOL (hereinafter: POOL) was established in May 1977 as a business association with the purpose of insuring nuclear plants. Since December 1998, the Croatian Nuclear POOL operates as an economic interest grouping (GIU).

Transaction Account Number: Privredna banka Zagreb d.d. 2340009-1100018818

186 Insurance and Reinsurance Companies 187 POOL Capacity for 2011

Insurance - Domestic Risks € % Reinsurance - Foreign Risks € % CROATIA 4,500,000.00 63.83 4,500,000.00 63.83 CROATIA LLOYD 1,100,000.00 15.61 1,100,000.00 15.61 ALLIANZ ZAGREB 600,000.00 8.51 600,000.00 8.51 TRIGLAV 500,000.00 7.09 500,000.00 7.09 GENERALI 350,000.00 4.96 350,000.00 4.96

Total 7,050,000.00 100.00 7,050,000.00 100.00

Insurance and Reinsurance Companies 187

The Croatian Insurance Bureau in 2011 The Croatian Insurance Bureau in 2011

In 2011, the Membership of the Croatian Insurance Bureau was comprised of the following insurance and reinsurance companies:

1. Agram životno osiguranje d.d. 2. Allianz Zagreb d.d. 3. Basler osiguranje Zagreb d.d. 4. Croatia osiguranje d.d. 5. Croatia zdravstveno osiguranje d.d. 6. Croatia Lloyd d.d. za reosiguranje 7. Erste Vienna Insurance Group d.d. 8. Euroherc osiguranje d.d. 9. Generali osiguranje d.d. 10. Grawe Hrvatska osiguravajuće d.d. 11. Helios Vienna Insurance Group d.d. Croatian 12. HOK osiguranje d.d. Insurance 13. Izvor osiguranje d.d. Bureau 14. Jadransko osiguranje d.d. 15. Kvarner Vienna Insurance Group d.d. 16. Merkur osiguranje d.d. 17. Sunce osiguranje d.d. 18. Triglav osiguranje d.d. 19. Uniqa osiguranje d.d. 20. Velebit osiguranje d.d.

For 15 Members membership is obligatory insurance conditions and tariffs have been replaced by competences related to according to the Compulsory Traffic Insurance preparing model standard policy conditions for compulsory traffic insurance lines. In Law and 5 Members - Agram Life, Croatia Lloyd addition to the mentioned responsibilities, the Croatian Insurance Bureau also Re, Croatia Health, Erste VIG and Merkur - were performed activities related to the out-of-court settlement of disputes within the admitted to voluntary membership of the competence of the Insurance Ombudsman Office and the Mediation Centre. The scope Croatian Insurance Bureau as the representative of functions of the Croatian Insurance Bureau has been further expanded in 2009 with body of the insurance companies in Croatia the Insurance Education Centre (CEDOH), established at the Croatian Insurance Bureau seeking to advance the common interests of the at the end of 2008 with a view to fostering the insurance business by improving the insurance industry to the benefit of the entire training and promoting higher competence levels of the insurance profession. insurance market. In addition to its responsibilities according to the Statutes, the following activities of the In 2011, the Croatian Insurance Bureau Croatian Insurance Bureau in 2011 should be highlighted: continued to carry out its responsibilities in accordance with the Insurance Law (Official Activities related to legislative developments impacting the insurance industry Gazette “Narodne novine” No. 151/2005, An amendment to the Law on Mandatory Health Insurance (Official Gazette No 87/2008, 82/2009) and the Compulsory Traffic 150/08), effective as from 1 January 2009, introduced a levy on MTPL Insurers to cover Insurance Law (Official Gazette “Narodne novine” medical costs related to traffic accidents, requiring insurers to pay 10% of the MTPL risk No. 151/2005, 36/2009, 75/2009) as well as the premium (paid premium less administrative loading) to the Croatian Institute for Health Statutes of the Croatian Insurance Bureau, Insurance. The Croatian Insurance Bureau challenged the legality of the new levy before performing the duties of the insurance the Constitutional Court and managed to reduce the 10% rate to 7% (as from 1 August association, the national Green Card Bureau and 2009) as a result of intense lobbying activities proving that the amount received by additional duties under international agreements applying the 10% rate is considerably higher than needed to cover the expenses of the relating to motor third party liability insurance, as Croatian Health Insurance Institute arising from traffic accidents to be covered by the well as its responsibilities related to the operation MTPL insurers. As the amount received by the Croatian Health Insurance Institute by of the Guarantee Fund, the administration of applying the 7% levy still by far exceeds the total reimbursement demands of the Frontier Insurance and activities associated with Croatian Health Insurance Institute made to the insurers in the years preceding the the collection of insurance statistics and the introduction of the levy, the Croatian Insurance Bureau continued to argue for a further operation of the Information Centre. In view of reduction. In July 2012, the Constitutional Court ruled in favour of the Croatian the liberalisation of the insurance market and Insurance Bureau. pursuant to Article 8 of the Statutes of the Croatian Insurance Bureau, the former The Law on Amendments to the Voluntary Health Insurance Law (May 2010) competences regarding the adoption of common authorised the Croatian Health Insurance Institute (that manages the public health

190 Croatian Insurance Bureau

insurance system) to carry on voluntary additional health insurance - in direct At a Panel Discussion on Insurance Fraud held at contravention to Art. 6 of the Croatian Insurance Law providing that insurance business the 18th Motor Insurance Claims Handling may be carried on by an insurance company that was granted supervisory authorisation Seminar of the Croatian Insurance Bureau the to write insurance business. In several meetings with representatives of the Croatian establishment of a Working Group was initiated Institute for Health Insurance, the Croatian Insurance Bureau expressed concerns over to bring together insurers and other stakeholders the unlevel playing field emphasizing that by expanding their activities to providing in order to ensure a fast and transparent additional health insurance cover the Institute would act in contravention of the exchange of relevant information to deter competition rules. insurance fraud. The connection and improved collaboration of the insurance industry with the At the end of 2011, a working group comprising representatives of the Members was police, the State Attorney's Office and the formed by decision of the Management Board of the Croatian Insurance Bureau to judiciary administration is necessary to fully prepare Amendments to or a draft new Compulsory Traffic Insurance Law to be support the police efforts in detecting insurance presented to the responsible Ministry of Finance as further insurance industry input to fraud attempts and to ensure a fast application of improve the existing insurance legislation within the process of the required further EU relevant laws in the sense of prosecuting harmonisation before Croatia's accession to the EU in 2013, in addition to the fraudsters and confiscating property directly contribution of the Croatian Insurance Bureau and insurance representatives invited to associated with the offence. the relevant working groups established at the Ministry of Finance at the beginning of the year. In light of the fact that insurance fraud does not affect solely an individual insurance company or Activities aimed at reducing the number of uninsured vehicles country, but rather is a matter of international Addressing the issue of uninsured vehicles was one of the most important projects of concern, making it essential to facilitate a the Croatian Insurance Bureau launched in 2009 and has remained a priority for the transparent and quick exchange of information Croatian Insurance Bureau. The Croatian Insurance Bureau has initiated a massive between the state bodies of a region, the national media campaign in co-operation with the responsible Ministry of the Interior Croatian Insurance Bureau initiated an to inform the public about the consequences of uninsured driving. The “Stop Uninsured international co-operation resulting in the Driving” campaign aims to increase public interest in the high level of uninsured driving Protocol on Cooperation to Combat Insurance and to remind irresponsible keepers not renewing their MTPL insurance of the Fraud signed on 12th April 2011 in Zagreb by consequences and consequently to reduce the cost of uninsured driving to all insurers representatives of Insurance Associations of and ultimately all insured drivers, with positive effects expected also for a number of Bosnia-Herzegovina, Montenegro, Hungary, other subjects: public funds and institutions including the State revenues. This primarily Macedonia, Slovenia, Serbia and Croatia. The educational media campaign together with intensified police efforts, including over Insurance Associations of the Czech Republic and 50,000 penalties issued in 2011, and other measures introduced through the Romania joined the Protocol on 1st September Information Centre at the Croatian Insurance Bureau proved to be efficient in reducing and 1st November 2011 respectively and the the level and impact of uninsured driving in Croatia as recent figures show a significant Austrian VVO at the beginning of 2012. 46% decrease in uninsured claims compared to 2008. źThe Signatories of the Protocol undertake to cooperate and exchange information with a view to: National Road Traffic Safety Programme – The Croatian Insurance Bureau took part ź activities aimed at preventing insurance in the activities of the Working Group established at the Ministry of the Interior to fraud at insurance association level, monitor the implementation of the National Road Traffic Safety Programme as well as ź statistical and other accessible indicators the Expert Group set up to support the development of the new National Road Traffic showing different aspects of the existence and Safety Programme 2011-2020. Several meetings were held with the representatives of consequences of insurance fraud in home the Ministry of the Interior to explore further areas of cooperation with a view to insurance markets, achieving the common goal: to improve road traffic safety in Croatia. ź systems of detection and prevention of insurance fraud developed and utilized by the Insurance Associations and their Member Insurance Fraud – Although one of the key issues last year, insurance fraud first came Companies and, into focus back in 2002 when the Croatian Insurance Bureau initiated the 'Agreement ź the development and application of on Cooperation to Combat Motor Insurance Fraud' and defined the ways to work provisions of national legislations dealing with together with the relevant authorities in a combined effort to combat 'fraudulent' traffic insurance fraud issues and the existing case law. accidents. In accordance with the Agreement, the Croatian Insurance Bureau developed a Central Database to maintain data on Motor Third Party and Casco claims In accordance with the national data protection submitted to the insurance companies. The database has been eqpanded over the provisions, the Signatories shall assist each other years to include further data to facilitate the detection of insurance fraud and modified regarding requests for relevant information to apply also to other insurance classes. regarding a potential case by directing enquiries to the relevant State, judicial and other bodies for data collection purposes, establishing

The Croatian Insurance Bureau in 2011 191 The Croatian Insurance Bureau in 2011

communication with their own Members for the Croatian Insurance Bureau in 2012. (insurance companies), instructing on the relevant laws and provisions of the particular Financial Education – The Croatian insurance industry recognises the importance of State, organising regular meetings to exchange financial education to improve the understanding of financial products and to enable information on their activities and sharing expert consumers to make appropriate choices and informed decisions. Against this knowledge, experiences and good practices background, the Croatian Insurance Bureau launched the Project Financial Literacy in concerning insurance fraud prevention. the Republic of Croatia - an initiative of the Croatian Insurance Industry, supported by the Ministry of Finance and submitted to the Government for approval. The Other countries of the region have also been Government supported the initiative in October 2011 and mandated the Ministry of invited to join the Protocol that was presented as Finance to develop a National Strategic Financial Education Framework in co-operation an example of good practice at the Fraud with the relevant Ministries and other stakeholders. Workshop organised on the occasion of the General Assembly of the Council of Bureaux in Other important activities in 2011 by areas of competence of the Croatian Insurance Dubrovnik. Bureau may be summarised as follows:

As a step further in its efforts to tackle fraud, the As common insurance industry voice at international level, the Croatian Insurance Croatian Insurance Bureau joined the Bureau is a Member of the Council of Bureaux - CoB, the European (re)insurance International Convention for the Recovery of federation Insurance Europe (formerly CEA), the International Union of Marine Stolen Vehicles – ICRV in May 2012 Insurance – IUMI and represents the Croatian insurance industry also before other international insurance organisations. During the year, the Bureau maintained its close Solvency II relationships with the CoB, Insurance Europe, IUMI and their member insurance bureaux and associations - and represented the Croatian insurance industry at The Croatian Insurance Bureau has taken an assemblies, conferences, seminars and meetings held abroad. active role in the preparations of its Members for the implementation of the new regulatory regime In its capacity as National Green Card Bureau the Croatian Insurance Bureau is by initiating a co-operation with the Croatian Member of the Council of Bureaux, the managing organisation of the Green Card Financial Services Supervisory Agency and the System, encompassing 46 countries and introduced 60 years ago to facilitate the flow Croatian Actuarial Association resulting in a joint of cross border road traffic in Europe and guarantee the compensation of domestic Solvency II Working Group. Within the framework victims of accidents caused by foreign motorists. Within the Council of Bureaux, the of the Solvency II implementation in the Republic Croatian Insurance Bureau is Member of the Central European Bureaux Regional Group. of Croatia, the Croatian Financial Services Regional Groups have been established to ensure better representation of smaller Supervisory Agency decided to conduct a markets within the System. The CEB Group, comprising the national Bureaux of Austria, Quantitative Impact Study in co-operation with Belarus, Croatia, the Czech Republic, Hungary, Slovakia, Slovenia, Switzerland and the Solvency II Working Group in the period Ukraine, meets twice a year to discuss matters of common interest aiming to reach a between October 2011 and May 2012. The common position and co-ordinate further actions in CoB Committees and Working Management Board of the Croatian Insurance Groups. The Croatian Insurance Bureau works closely throughout the year with other Bureau invited all Members to participate in the National Bureaux to exchange information on issues related to the support of its study. Members regarding their activities within the framework of the Green Card System.

In effort to support its Members, the Croatian In May 2011, the Croatian Insurance Bureau was host to the 45 General Assembly of the Insurance Bureau continuously informs its Council of Bureaux in Dubrovnik. More than 130 delegates from 44 Member Bureaux as Members on news and developments at well as guest speakers and representatives of the EU and the UN took part in the 2011 European level: in 2011 the Croatian Insurance General Assembly. Representatives of the Croatian Insurance Bureau had been invited Bureau organised a Solvency II and two QIS 5 to present to the General Assembly an overview of the Croatian Insurance Market and seminars and the Insurance Education Centre the activities of the Croatian Insurance Bureau. The initiatives of the Croatian Insurance delivered four Solvency II workshops: “Valuation Bureau to counter insurance fraud were presented at the Workshop “International of assets, technical provisions and other liabilities Fraud in MTPL” organised on the second day of the General Assembly, when the under Solvency II”, “Operational Risk international co-operation initiated by the Croatian Insurance Bureau through the Fraud Management within the Framework of the Protocol was highlighted as an example of good practice. Solvency II: SCR Calculation for Life and Non-Life Underwriting Risk Modules”, “Financial Risk As the Croatian Compulsory Traffic Insurance Law provides that the 4th MID Management within the Framework of Solvency Compensation Body and Information Centre shall be established within the Croatian II: SCR Calculation of Modules for Market Risk, Insurance Bureau, in 2010 the Croatian Insurance Bureau applied for adherence to the Counterparty Risk and Intangible Asset Risk” and 4th MID Bodies Structure at the Council of Bureaux to ensure the smooth operation of “Operational Risks within the Framework of the Compensation Body and Information Centre upon the accession of the Republic of Solvency II”. Croatia to the European Union. More than 75% of the Signatories of the Agreement on Solvency II continues to be one of the key issues

192 Croatian Insurance Bureau

the exchange of Information between Information Centres under Article 23 of Directive its trained mediators with substantial experience 2009/103/EC had a positive reaction to our membership request, enabling the in mediation practice, has continued to establish Information Centre at the Croatian Insurance Bureau to become Signatory to this EEA itself in professional and judicial circles. The Information Centres Structure at the Annual Conference of the Guarantee Funds and Mediation Centre at the Croatian Insurance Compensation Bodies on 4th November 2010. As there is no formal possibility of a Bureau has confirmed its reputation as a highly non-EEA country joining the 4th MID Bodies Structure at the Council of Bureaux, the successful Mediation Centre. Croatian Insurance Bureau was invited as a permanent guest to the Annual Conference of the Guarantee Funds and Compensation Bodies by decision of the Coordination The Croatian Insurance Bureau considers it very Committee. important that the public be constantly informed about the mediation institution and the In 2011, the Croatian Insurance Bureau organised workshops to prepare its advantages of mediation as an alternative Membership for their new activities within the framework of the “4th MID” with a view method of dispute resolution as opposed to long to ensuring a smooth integration of the Croatian Motor Insurance Market into the lasting and expensive litigated disputes. With a European market. view to informing the public about the work of the Mediation Centre at the Croatian Insurance As representative of all Croatian insurance companies at international level, the Bureau, the Centre was throughout the year Croatian Insurance Bureau closely co-operates with other national Insurance promoted through press, radio and television Associations through the European umbrella association Insurance Europe (formerly coverage. Greater awareness of its activities is CEA). As the European insurance and reinsurance federation, Insurance Europe also being promoted through leaflets and posters represents through its 34 national member associations more than 5,000 insurance of the Mediation Centre of the Croatian Insurance and reinsurance companies. One of the main objectives of Insurance Europe is to Bureau displayed at the Municipal and County present and promote the interests of European insurers, its activities mainly being Courts as well as in the premises of our Member focused on the exchange of information and the cooperation of the European insurance Companies. Over the year, the Mediation Centre market, in view of representing their positions at European Union institutions and was presented at conferences and workshops international organisations (WTO, OECD ...). and in April 2011 it took part in the international project Independent Mediation Centres initiated Since its admittance as Associate Member of the CEA in June 2002, the Croatian by USAID and World Learning Kosovo in order to Insurance Bureau participated in the work of CEA's – now Insurance Europe's Motor promote mediation in Kosovo. Insurance Committee, Atomic Risks Committee, Economy and Finance Committee, International Affairs Committee and Social Affairs Committee, as well as in its sub- The Mediation Centre actively takes part in the committees and working groups. After the admission to full membership in June 2007, activities of the Alternative Dispute Resolution the Croatian Insurance Bureau was admitted to membership of the Life, Health, Committee established at the Ministry of Justice Accident, General Liability and Property Insurance Committees of Insurance Europe. in compliance with the Strategy of Reform of Administration of Justice. In light of Croatia's accession to the European Union, the Croatian Insurance Bureau intensified its co-operation with Insurance Europe and its member associations in order Similar to other European countries, the to obtain useful information and guidance regarding EU issues and thereby contribute Insurance Ombudsman Service was in 2007 to a smooth integration into the European insurance market to the benefit of its established at the Insurance Association – the Members. Croatian Insurance Bureau, as an autonomous and independent dispute resolution body to The International Union of Marine Insurance (IUMI) is one of the oldest trade facilitate the settlement of disputes between associations dating back to 1874, with over 45 Members on all five continents. IUMI consumers and insurance companies with a view was the first international association to accept Croatia into its Membership after the to supporting appropriate and workable conduct declaration of independence in 1992. of business and consumer protection rules.

ADR mechanisms are gaining in importance in Croatia and becoming more prominent In 2011, the Ombudsman received 7% less among consumers of insurance products. The Mediation Centre at the Croatian complaints from consumers who were not Insurance Bureau was founded by decision of the Management Committee of the satisfied with the way the insurance companies Croatian Insurance Bureau of 29th March 2007 and pursuant to Article 272 paragraph 1 proceeded compared to 2010, but 11% more and Article 273 paragraph 1 and 2 of the Insurance Act (Official Gazette “Narodne compared to 2009. The majority (60%) related to novine” No. 151/2005), and Article 10 of the Statutes of the Croatian Insurance Bureau Motor Insurance (MTPL 56% and Casco 6%), – with the objective of resolving insurance and claims related disputes arising out of followed by 9% General Liability and 7% Life insurance contracts and the law, in relation to the rights of the injured persons, the Insurance complaints. The rise in the number of insured and the insurance companies. By founding the Mediation Centre, the Croatian complaints referred to the Ombudsman, which is insurance companies have expressed a common position that reflects their readiness still relatively low compared to the number of to promote and the need to support the out-of-court settlement of disputes. insurance contracts and the total number of Over the last year, the Mediation Centre, renowned for its quality of work and trusted for claims made, should be seen as a result of

The Croatian Insurance Bureau in 2011 193 The Croatian Insurance Bureau in 2011

continued efforts to inform the consumers of this 23 October 2009 the Internal Regulations of the Insurance Education Centre and relatively new consumer protection body in decided upon the membership of the Technical Council responsible for developing and Croatia. carrying out educational programmes and proposing lecturers within the programme framework as well as for organising final examinations. Based on the current needs of The work of the Ombudsman Service has the insurance industry, a framework education programme for insurance employees certainly contributed to achieving a higher was developed focussing on the core training of insurance apprentices, the training of standard of consumer protection in insurance insurance agents and brokers and specialist education. The Centre has established a disputes, but also to promoting good practices cooperation with the Croatian Financial Services Supervisory Agency and the Ministry and fundamental standards of the insurance of Finance whose employees regularly attend basic insurance training seminars business, since the insurance companies are kept organised by the Centre. The Insurance Education Centre organised two basic informed through circulars of the positions taken insurance training seminars and six specialist seminars in 2011 as well as four Solvency by the Ombudsman regarding the most common II Workshops. cases related to insurance companies failing to act in compliance with the provisions of the Code In 2011, the Insurance Education Centre at the Croatian Insurance Bureau started its of Insurance and Reinsurance Business Ethics. publishing activities: compiled texts from lecturers of the basic training seminars have been published in the Textbook for students of the basic insurance seminar. As a step further towards higher consumer protection standards, the Croatian Insurance Although Croatia is not a Member of the EU yet, the amended Croatian Insurance Law Bureau launched the Project Financial Literacy and the Compulsory Traffic Insurance Law already have incorporated provisions to in the Republic of Croatia, an initiative of the enable the transposition of the relevant EU-Directives into Croatian Law upon Croatia's Croatian insurance industry supported by the accession to the EU. The Information Centre set up at the Croatian Insurance Bureau is Ministry of Finance and approved by the Croatian prepared to meet the requirements of the 4th EU Motor Insurance Directive, which was Government. confirmed recently when more than 75% of the Signatories of the Agreement between 4th Directive Information Centres had a positive reaction to our membership request, Following the initiative of the insurance enabling the Information Centre at the Croatian Insurance Bureau to become Signatory companies, that indicated their strong need for to the EEA Information Centres Agreement on 4th November 2010. Pending the continuous education and professional training accession of Croatia to the EU, the Information Centre at the Croatian Insurance Bureau of their staff, and in accordance with the helps victims of traffic accidents by assisting them to identify the responsible third party Insurance Act and the Statutes of the Croatian liability insurer and providing other information in accordance with the current legal Insurance Bureau, the Insurance Education provisions given by the Croatian Insurance Law. The Information Centre contains a Centre (CEDOH – Centar za edukaciju MTPL Insurance Register for all vehicles registered in Croatia and is available at the djelatnika u osiguranju) was established at the website www.huo.hr. It also maintains a database of shortened versions of police end of 2008 at the Croatian Insurance Bureau, as reports to facilitate and speed up the claims handling procedure of our Members part of its function as association of insurance transacting motor insurance. companies seated in the Republic of Croatia. The Information Centre at the Croatian Insurance Bureau operates also a claims The Insurance Education Centre at the Croatian database aimed at combating motor insurance fraud by giving our Members access to Insurance Bureau was established with a view to claims data in order to enable the detection of multiple and fraudulent motor insurance fostering the insurance profession and thereby claims. Automated procedures have been implemented supporting the detection of enhancing the services of the insurance industry potentially false policies as well as uninsured vehicles by cross-referencing data on by promoting and providing expert and MTPL policies collected from insurance companies with data supplied by the Ministry of professional educational programmes across all the Interior. As from 2009 insurance companies are regularly receiving data enabling insurance lines. The aims of the Insurance them to send notifications to their former insured whose insurance lapsed more than Education Centre shall be achieved by organising 30 days ago reminding them to renew their MTPL policy. seminars, workshops and panel discussions as well as through co-operation with other In view of the increasing number of Internet users in Croatia and at the initiative of its institutions in Croatia and abroad (Croatian Members, the Croatian Insurance Bureau developed in co-operation with the Ministry Financial Services Supervisory Agency, of the Interior and the Vehicle Centre of Croatia a WEB service enabling the Members to academic institutions, Insurance Europe, Council issue on-line insurance certificates to their policyholders wishing to renew their MTPL of Bureaux and others), by providing continuous insurance over the Internet. The certificates are accepted by the Authorities as proof of basic and advanced level training for insurance MTPL insurance to be presented at vehicle registration instead of the original MTPL employees as well as by preparing professional Policy delivered by post. publications. The Management Board of the Croatian The activities in 2011 were focused on finalising existing and developing new projects Insurance Bureau adopted at its 157 Meeting on

194 Croatian Insurance Bureau

within the Information Centre aimed at addressing the issue of uninsured vehicles and provisions and other liabilities under Solvency II”, insurance fraud. 12 October 2011, on “Operational Risk Management within the Framework of the The Croatian Insurance Statistics Project was initiated in 2007 with the aim of Solvency II: SCR Calculation for Life and Non-Life establishing a single national insurance statistics database including the development Underwriting Risk Modules” on 9 November of a data collection system. In 2008, the Croatian Insurance Bureau developed a WEB 2011, on “Financial Risk Management within the service enabling communication with all insurance companies established in the Framework of Solvency II: SCR Calculation of Republic of Croatia and an application by means of which insurance companies update Modules for Market Risk, Counterparty Risk and and supply data to the Croatian Insurance Bureau. Within the framework of the Intangible Asset Risk” on 24 November 2011 and insurance statistics project, an internal application was developed to collect data on set on “Operational Risks within the Framework of parameters to enable the generation of monthly, quarterly and annual reports. Solvency II” on 7 December 2011.

Aside from the legal requirement to record and keep statistical data, the Croatian Throughout the year the Croatian Insurance Insurance Bureau had from the outset of the statistics project a vision of a modern and Bureau maintained an active dialogue and easily expandable source of reliable data to the benefit of all insurance companies continued to work closely on behalf of its operating in the Croatian Insurance Market and other interested parties carrying out Members with the Ministry of the Interior, the market research. In response to proposals of the Statistics Committee at the Croatian Ministry of Finance, the Ministry of Foreign Insurance Bureau, the statistical system of the Croatian Insurance Bureau was for the Affairs and European Integration, the Ministry of first time expanded in 2009 to cover data relating to new life insurance and further in Justice, the Ministry of Maritime Affairs, 2010 to include a new dataset on MTPL Insurance that will primarily serve as a reliable Transport and Infrastructure, the Ministry of data source to actuaries creating new products and tariffs. The need for quality Tourism, the Ministry of Health, the Croatian statistics was certainly one of the main reasons for non-members wishing to take part Health Insurance Institute, the Croatian in the statistics project of the Croatian Insurance Bureau. Competition Agency, the Croatian Personal Data Protection Agency, the Croatian Financial As a result of these activities, the Croatian Insurance Bureau has established itself as the Services Supervisory Agency, the Courts, the central national insurance statistics source accessible to the insurance industry since Insurers Association at the Croatian Chamber of the beginning of 2008 and also available to the public through the website of the Commerce, the Croatian Actuarial Association, Croatian Insurance Bureau. The statistics project also enabled the Croatian Insurance the Croatian Banking Association, the Croatian Bureau to reply to statistics questionnaires and provide required data to the Council of Bar Association, the Croatian Road Transport Bureaux and Insurance Europe. Association, the Vehicle Centre of Croatia and During 2011, the insurance companies received regular monthly and quarterly reports other stakeholders on addressing various issues and, based on the data supplied by the insurance companies, the Croatian Insurance of common concern to the insurance industry. Bureau issued the 2011 edition of this annual report as well as a specialised publication covering statutory traffic insurance lines, with special regard to the Croatian MTPL The Croatian Insurance Bureau has, in addition to Insurance Market. Monthly, quarterly and annual statistics reports are also available on the aforementioned activities, throughout the the website of the Croatian Insurance Bureau. year continued to perform its regular duties in administering the Guarantee Fund, In May 2011, traditionally in Opatija, the Croatian Insurance Bureau organised its 19th responsibilities with regard to the statutory traffic Motor Insurance Claims Handling Seminar to address various important issues specific insurance lines as well as activities related to the to claims handling and management. Besides representatives from the insurance drafting of standard policy conditions also for industry, the Seminar was attended by representatives of several Croatian ministries as other insurance classes, it represented the well as representatives of county and municipal courts. interests of Croatian insurers at European and international level to all relevant international Further important events in 2011 include seminars, workshops and expert training institutions, and carried out further activities of events organised with a view to promoting the activities of the Members including: in common and mutual interest to the Croatian co-operation with the Slovenian Insurance Association, the Croatian Financial Services insurance industry. Supervisory Agency and the Croatian Actuarial Association a Workshop on “QIS 5 – Slovenian Experiences” held in Zagreb on 2 March 2011, a panel discussion on “Insurance Fraud”, on 12 April 2011 in Zagreb, in cooperation with the Croatian Actuarial Association and Munich Re the Workshop “Solvency II”, Zagreb, 9 June 2011, as well as four Solvency II Seminars organised in Zagreb by the Insurance Education Centre of the Croatian Insurance Bureau on the “Valuation of assets, technical

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