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.