CROATIAN INSURANCE MARKET

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2 CROATIAN INSURANCE MARKET 1

3 Publisher: Telephone: Facsimile: Website: For the publisher: Prepared by: Hrvatski ured za osiguranje Martićeva Zagreb Croatia huo@huo.hr Hrvoje Pauković, Director Mihaela Premor Andrijanić and Tanja Stahuljak Collaborators: Snježana Bertoncelj Slaven Dobrić Marijana Hržić Jasna Komljenović Lončar Jakša Krišto Vladimir Miletić Anita Oreč Željko Jukić Zoran Zaninović Translation: Graphic design and layout: Ljiljana Petrina Banov Tanja Stahuljak ARCODE Zagreb Zagreb, The information contained herein may be used in full or in part only with an appropriate indication of the source. 2

4 CROATIAN INSURANCE MARKET CROATIAN INSURANCE MARKET Introduction Basic and Macroeconomic Indicators Insurance Market in the Republic of Croatia Dynamics of the Insurance Market in the Period of Review of the Insurance Market in Non-Life Insurance (Classes 1-18) Life Insurance (Classes 19-25) Insurance and Reinsurance Companies in The in 3

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6 Basic and Macroeconomic Indicators 01 5

7 Basic and Macroeconomic Indicators 01 Basic and Macroeconomic Indicators In the prosperous years of economic growth the GDP in Croatia grew at rates higher than five percent. Afterwards Croatia faced a crisis which has been persistent for the sixth year. The growth of the GDP in the period from 2001 to 2007 increased from 3.8 to 5.1, but slowed down to 2.1 in In 2009 the GDP even reached 6.9 and continued in 2010 by further 2.3.In 2011 the GDP dropped by 0.2 and in by further 1.9. After a number of years of growth of the GDP from 33 billion in 2004 to 47.5 billion in 2008 it dropped to 44.8 billion in 2009, and to 44.4 billion in 2010, and 44.2 billion in In the GDP amounted to 43.7 billion which is less than in Thus the GDP per capita surged up from 7,436 in 2004 to 10,722 in 2008, and fell to 10,111 in 2009,followed by a further fall to in In 2011 the GDP per capita equalled to 10,043 in to 10,241 and in to 10,093.Industrial production, after a growth of 1.6 in 2008 dropped severely in 2009 by 9.3, in 2010 by further 1.4, in 2011 by 1.2, in by 5.6 and in by 1.8.Construction industry in dropped by 11.2, in by further 4.1. Turnover in retail trade in decreased by 3.9, in it nominally grew by 1.4 but realistically dropped by 0.6. One encouraging aspect is that the number of tourist overnight stays, after a drop of 1.4 in 2009,increased by 3.2 in 2010, by 7 in 2011, by 4 in and by 3.3 in. Tourism revenue improved the balance of payments being the only economic improvement in the last year. Because of recession the average annual inflation rate decreased from 6.1 in 2008 to 2.4 in 2009 and to merely 1.1 in 2010.In 2011 the consumer price growth rate increased to 2.3, in to 3.4 while in it dropped to 2.2.The exchange rate of the Croatian kuna against the euro gradually grew till 2008, while the average exchange rate in 2004 floated around 7.5 kuna per euro, in 2005 around 7.4 kuna per euro and in 2006 only 7.32 kuna, in 2007 it was 7.33 kuna and in 2008 merely 7.22 kuna per euro. In 2009 the kuna weakened slightly and the average exchange rate was 7.34 kuna, while in 2010 it grew slightly stronger to 7.29 kuna per euro. In 2011 the average exchange rate was 7.43 kuna, in 7.52 kuna and in 7.57 kuna. The exchange rate of the Croatian kuna against the US dollar is unstable mostly reflecting the fluctuation of the US dollar. During the year 1998 the exchange rate of the US dollar against the Croatian kuna was less than 6 kuna per dollar, mid-2000 it exceeded 9 kuna per dollar, and 2004 and 2005 it again approached 6 kuna per dollar. In 2006 the average exchange rate was 5.84 kuna per dollar, in kuna per dollar, in kuna per dollar and 5.28 kuna per dollar in In 2010 the average exchange rate of the US dollar was 5.50 kuna, in kuna, in 5.85 kuna and in 5.7 kuna. A stable exchange rate of the kuna has many advantages, and although exporters protest against cheap imports, partially being supported by the IMF, the Croatian National Bank has no intention of changing the monetary policy. Total commodity exports in 2010 came to 17.6 billion (in 2009 to 16.1 billion) and the total commodity imports in 2010 amounted to 17.7 billion (in 2009 to 17.9 billion), and by this increase of total commodity exports and the mild decrease of total commodity imports the balance of payments improved considerably. Similar dynamics were recorded in 2011 since exports increased to billion and imports to almost same 18.7 billion. The deficit of the current balance of payments in 2011 decreased to merely 385 million, while by the end of 2010 it amounted to 468 billion against 2.3 billion in 2009 and almost 4.3 billion in In exports increased to billion and imports remained the same billion. In exports have been reduced to billion while imports were slightly lower billion. After several years a positive balance of payments was reached to the amount of 564 million.in spite of this improvement of the balance of payments further but relatively small growth of the foreign debt was recorded. By the end of 2005 the foreign debt equalled to almost 26 billion, by the end of 2006 it was 29.7 billion, by the end of billion, by the end of billion, by the end of billion and in billion. Only in 2011 the foreign debt diminished to 45.7 billion, by the end of to 44.9 billion and by the end of it grew to 45.6 billion. During the past few years the foreign debt stabilized but the burden of interests paid for the debt is still too heavy for the exhausted Croatian economy. After the change in the strong tendency of growth of bank investments in 2009 when, for the first time after many years, bank credits to the state, commercial companies and population fell, in 2010 they indicated a growth. These credits reached 23.9 billion in 2006 reflecting a growth of 22.8, in 2007 they reached 27.4 billion with a growth of 14.5, and in 2008 they reached 30.5 billion with a growth of The year 2009 recorded a drop to 30.3 billion, by 0.7 and in 2010 they rose considerably to 32.2 billion by 6.1 with an increase of bank credits to commercial companies from 13.8 to 15.0 billion and credits to population from 16.2 to 16.8 billion. In 2011 credits increased by modest 5.6 to 34 billion, of which 1.3 billion fell to economy, while credits to population grew by merely 132 million. In credits decreased to 32.2 billion, to population to 17.1 billion and to economy to 15.1 billion. It should be noted that the decrease of credits to economy to the amount of 739 million by the end of resulted from an operation of one bank which transferred its claims to a trading company in its ownership. This effected the total balance of all credit institutions. In credits were reduced to 32 billion, credits to population to billion and credits to economy slightly rose to 15.1 billion. Bank deposits (without deposits of state funds) increased from 22 billion in 2006 to 27 billion in 2008, the year 2009 recorded a minimal growth to 27.2 billion, and in 2010 a more significant growth to 28.5 billion and in 2011 a further growth to 29.3 billion. And in 2010 foreign currency deposits increased by 1.5 billion and kuna deposits decreased by 528 million. In 2011 it was vice versa, kuna deposits increased by 1 billion while foreign currency deposits decreased by 330 million. In deposits rose to 30.1 billion, while kuna deposits sank from 5.6 billion to 5.3 billion and foreign currency deposits grew from 19 billion to 20.1 billion. In kuna deposits also rose i.e. to 5.5 billion, and foreign currency deposits grew to billion. Foreign liabilities representing the biggest source of debt accumulation for banks fluctuated from 2006 to 2008 between 8.85 to 10.3 billion, while in 2009 they increased to billion, in 2010 to billion, in 2011 to billion and in decreased to 9.73 billion. In foreign liabilities decreased again to 9.15 billion. This decrease reflects a decreased demand for credit from the population and the withdrawal of a part of bank deposits and transference into other countries for better profit. Interest rates on deposits oscillated in the last few years, showing till 2008 a growth tendency, followed by a severe drop by the end of 2009 which, apart from some exceptions, continued in In 2011 some rates grew and others dropped, while in and in there was a trend of dropping interest rates on deposits. Interests on kuna deposits not indexed to a foreign currency surged up from 1.83 in 2004 to 2.92 in 2008 then fell to 2.22 in December 2009,and to 1.61 in December In December 2011 they rose to 1.88, by the end of they fell to 1.76 and by the end of they stood at Interests on term kuna deposits not indexed to foreign currency interests rose to 5.65 in 2008, fell to 2.52 in 2009 and to 1.93 in 2010, while in 2011 they surged up to 2.46, in they fell to 2.09 and by the end of to Interests on short-term deposits dropped from 5.60 to 2.49 in 2009, and to 1.85 in 2010, then rose in 2011 to 2.33, by the end of fell to 1.95 and to 1.58 in December.Interests on long-term deposits fell from high 6.58 by the end of 2008 to merely 2.76 in 2009, by the end of 2010 they grew to 4.26, fell to 2.98 in 2011 and surged up to 4.36 by the end of and fell to 3.36 in. Interest rates on foreign exchange deposits showed a stable tendency of growth from 2.65 in 2004 to 3.97 in 2008, which stopped in 2009 at 3.98, continued its drop to 3.09 in 2010, to 2.90 in 2011, to 2.84 in and to 2.24 in. Interest rates on short term foreign currency deposits fell from 2.56 to 1.86 in the past three 6

8 Basic and Macroeconomic Indicators years. Interest rates on long-term foreign currency deposits fell from 5.51 in 2008 to 5.13 in 2009, however, increased in 2010 to 5.36 and dropped to merely 3.84 in 2011 and to 3.64 in, while in December, unlike the others, they grew to These dynamics affect a gradual decrease of insurers' income from financial assets deposited at banks. Interest rates on kuna loans not indexed to a foreign currency had a falling tendency till 2005 i.e showing again growth till In 2004 they declined from to 9.07 in 2006, a year later they rose to 9.32 and to in 2008, and in 2009 to However, in 2010 interests dropped to By the end of 2011 interests stood at 9.36, by the end of at 9.26 and in by Similarly, interest rates on kuna loans indexed to a foreign currency fell from 6.89 in 2004 to 6.18 in 2005, but rose to 7.73 in 2008 and to 8.28 in 2009, while in 2010 they dropped to In 2011 these interests kept falling to 7.15, in to 6.54 and by the end of they were It should be mentioned that interest rates for these short term loans (indexed to a foreign currency) for population decreased from 8.5. to 7 percent. However, loans not indexed to a foreign currency for population stood in still at 11 percent and only at the beginning of 2014 these rates fell to 10.3 percent. Long term loans not indexed to a foreign currency for trade companies may have interest rates less than 6 while private entities are charged to 9. The number of employed people before the crisis grew from 1,421 million in 2005 to 1,468 million in 2006, to 1,485 million in 2007 and to 1,532 million in In the year of crisis 2009, the number of employed people decreased to 1,499 million and by the end of 2010 to 1,432 million; by the end of 2011 the number was 1,411 million, in 2011 being even lower: million and in it dropped by further 1.2.In the employment survey indicated 1,387 million people. The number of unemployed people dropped from 309 thousand in 2005 to 292 thousand in 2006, to 254 thousand in 2007 and to 240 thousand in 2008, but rose to 291,545 by the end of 2009 and to 319,845 by the end of In 2011 the number of unemployed people was slightly less by 315,438 but by the end of it exceeded 358 thousand. By the end of the number of unemployed persons exceeded 363 thousand. Such a high number of unemployed people is one of the heaviest burdens for Croatian economy and the biggest social problem for the Croatian population. The budget deficit of the consolidated central government in 2006 reflected a deficit of approx. 3.4 of the GDP, which was slightly less than the year before when it reached 3.5, in 2007 the deficit was 3 of the GDP and in of the GDP, while in 2009 it was considerably higher by4.6 of the GDP and in 2010 even 5.4. In 2011 the deficit was 5.5, in it decreased to 4 and in it was 2.14 billion or 4.9 of the GDP. By the end of 2008 the national debt totalled to 13.24billion, or 29.3 of the GDP, in billion or 35.8 of the GDP, in billion or 42.6 of the GDP, in 2011 it totalled to billion or 47.2 of the GDP, in billion or 53.7 of the GDP and in billion or 66.8 of the GDP. By this Croatia almost reached the position of a highly indebted country. Through the past few years the financial sector in Croatia has been developing considerably faster than the real sector, and grew, though slower than before, through the years of crisis. In 2008 the growth nominally was 2.2 against 2.4 of the real growth of the GDP and in 2009 the financial sector increased by further 4.3 to billion and in 2010 the financial sector reached billion, by 4.1 more than in the year before. In 2011 the financial sector reached billion, by 3.2 more than in the previous year, and bank assets with billion and building societies' assets with 1 billion together made approx. 78 of the financial sector's assets. In the financial sector stagnated at billion while the bank assets with billion and building societies' assets with 1 billion rather dropped to 75.2 of the financial sector's assets. In the financial sector grew by 2.5 to billion, and bank assets and building societies' assets with billion made 75.4 of the sector's assets. The total assets of the mandatory pension funds based on permanent contributions have been rising sustainably. By the end of 2008 to 2.98 billion or 4.8 of the financial sector's assets, by the end of 2009 to 3.87 billion or 6 of these assets, by the end of 2010 to 4.79 billion or 7.1 and by the end of 2011 to 5.41 billion or 7 and by the end of 6.75 billion or 9.6. In the assets of these funds reached 7.68 billion or 10.7 of the sector's assets or the largest non-banking sector. By the end of 2008 the assets of the voluntary pension funds amounted to million, in 2009 to million, by the end of million, in million, in 317 million and in million. The assets of the open-end investment funds survived the financial crisis, however, with great loss. In 2008 it declined from 3.83 billion to 1.31 billion or merely 2.1 of the financial sector's assets. In 2009 a slight growth of open-end investment assets to 1.58 billion was recorded or 2.5 assets of the financial sector and by the end of 2010 the open-end investment assets accounted for 1.81 billion or 2.7 of the financial sector's assets. End of 2011 open-end investment funds amounted to 1.58 billion i.e. 2.2 of the financial sector's assets and end of 1.72 billion or 2.4. In open-end investment funds remained at 1.76 billion or the same 2.4. Significant non-banking financial institutions are leasing companies of which assets stand at 4.59 billion in 2009 which decreased to 3.83 billion (5.7) in 2010 and to 3.43 billion in 2011 (4.8) and to 2.93 billion in (a share of 4.2 of the financial sector). In these assets increased to 3.04 billion which made 4.22 of the entire sector's assets. The year 2008 featured a slowdown in the insurance market growth, unlike in earlier years when it was in double digits, because the premium income of 1,278 million exceeded the 2007 premium by only 6.8. The year 2009 witnessed a premium drop which has not stopped since. The gross premium came down by 2.7 to 1,242 million in 2009 and in 2010 some further 1.8 to 1,220 million. The decline in 2011 was slower, by 1.1 and the premium dropped to 1,207 million and in, the fourth year in line the premium dropped to 1,193 million. In an increase of gross premium to 1,198 million. However in the period January-April of the year the premium dropped by 2.7. The insurers' share in the financial sector's assets grows slowly but continuously. Total assets of Croatian insurers continued its growth: in 2007 it amounted to 2.95 billion, in 2008 to 3.39 billion, in 2009 to 3.68 billion, in billion and in billion ( 4.35 billion together with reinsurance)which made about 6.2 of the financial sector. In the insurers' assets reached 4.5 billion ( 4.62 billion together with reinsurance) which makes 6.4 of the financial sector. However, the growth in was modest to 4.67 billion or 6.5 of the sector's assets. In 2010 it was 5.9,in 2009 it was 5.7, in and in The mathematical provision for life insurance which represents the main long-term fund in the insurance industry amounted in to 1.76 billion, the same as in. Earlier, in2011 the mathematical provision for life insurance amounted to 1.70 billion, in 2010 to 1.58 billion, in 2009 to 1.38 billion and in 2008 to 1.24 billion. Insurance assets guarantee that insurance obligations shall be met and ensures stability of the whole insurance system. However, the decrease of premiums in the last few years is reflected on the stagnation and slow growth of insurance assets and the reasons for that can be derived from problems in the real sector in the Croatian economy. The decrease of industrial production, the decrease of construction industry and the drop in car sales result in a decrease of property insurance premiums and lower personal incomes. On the other hand, results in life insurance are surprisingly good. In such complex circumstances the insurers' profit through the last three years float at about half a billion kuna per annum which is by far higher than in the years before. Most significant is that this affected the reduction of motor vehicle liability losses, meaning that the quality of the insurers' portfolio has improved. The beginning of 2014 was characterized by the liberalisation of motor liability insurance which brought to a strong premium drop. It would be most unfavourable if liberalisation brought to a price war because it could endanger the stability of the market. For now it affected the decrease of non-life gross premium and gross premium. The decrease was modest and unexpected, alleviated by a strong increase of life insurance premiums. Also encouraging is the drop in the amount of claims settled in life and non-life insurance, since claims in life insurance grew throughout the years at very high rates. In view of various dynamics the beginning of the current year certainly announces serious challenges for the whole insurance sector. 7

9 Basic and Macroeconomic Indicators 8

10 Basic and Macroeconomic Indicators Basic Indicators Official name: Republika Hrvatska Land area: km 2 Territorial sea area: km 2 Total area: km 2 Population (2001): 4,437,460 (female 51.84, male 48.16) 21 Counties (incl. the City of Zagreb) Selected Macroeconomic Indicators ,661 87,661 87,661 87,661 87,661 87,661 87,661 87,661 87,661 4,442 4,440 4,436 4,434 4,429 4,418 4,403 4,268 4,268 1,729,312 1,759,492 1,781,357 1,791,546 1,768,928 1,734,879 1,701,593 1,701,476 1,702,817 total area, sq km population, mid-year estimation, in 000 active population 266, , , , , , , , ,252 60,030 65,550 71,756 77,450 74,209 73,293 74,662 76,983 76,441 36,034 39,745 43,390 47,543 44,781 44,441 44,220 43,707 43,078 8,112 8,951 9,781 10,722 10,111 10,059 10,043 10,241 10,093 44,816 49,843 59,319 69,595 62,244 58,874 61,521 56,156 57,178 10,089 11,226 13,372 15,696 14,054 13,326 13,972 13,157 13, GDP, current prices, HRK million GDP, per capita, HRK GDP, current prices, EUR million GDP per capita, EUR GDP, current prices, USD million GDP, per capita, USD GDP, real growth rate, midpoint exchange rate HRK/EUR midpoint exchange rate HRK/USD consumer prices - inflation, annual growth rate, 4,376 4,603 4,841 5,178 5,311 5,343 5,441 5,478 5,515 1,420,574 1,467,876 1,516,909 1,554,805 1,498,784 1,432,454 1,411,238 1,377,153 1,357, net earnings in HRK number of employed persons, unemployment rate, Source: Croatian Chamber of Economy, 2014 Source: Croatian Chamber of Economy,

11 Basic and Macroeconomic Indicators 3 Financial institutions in Financial institutions in the Croatian financial market 29 commercial banks 1 savings bank 5 housing savings banks Croatian Bank for Reconstruction and Development 26 insurance companies 1 reinsurance company 39 insurance intermediation companies more than 300 insurance representation companies and crafts 25 investment fund management companies 77 UCITS investment funds 25 alternative investment funds Fund of Croatian War Veterans of Homeland War and their Family Members 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. 9 investment companies (brokerage companies) and 16 banks licensed to transact securities business (brokerage and custody services and depository bank services) 4 mandatory pension fund management companies 4 voluntary pension fund management companies 6 open-end voluntary pension funds 16 closed-end voluntary pension funds 1 pension insurance company 23 leasing companies 25 factoring companies The supervisory institutions in the financial sector: / Croatian National Bank / Croatian Financial Services Supervisory Agency / State Agency for Deposit Insurance and Bank Rehabilitation of Financial Intermediaries in the Total Assets 4 of Financial Intermediaries by the End of Assets in Financial Intermediary Commercial banks Mandatory pension funds Insurance companies Leasing companies Open-end investment funds Housing savings banks Voluntary pension funds Closed-end investment funds in mil. EUR 53, , , , , TOTAL 70, Source: Croatian Chamber of Economy, Source: Official sites of regulatory institutions, 10

12 Basic and Macroeconomic Indicators Mandatory pension funds 9.60 Insurance companies 6.41 Leasing companies 4.18 Open-end investment funds 2.44 Housing savings banks 1.40 Voluntary pension funds 0.46 Closed-end investment funds 0.31 Commercial banks

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14 Insurance Market in the Republic of Croatia 02 Note: The amount of Gross premium written in non-life insurance comprises the premium of co-insurance: - in to a total of 123,007 - in to a total of 633,090 - in 2011 to a total of 1,152,102 - in 2010 to a total of 1,385,893 - in 2009 to a total of 799,927 13

15 02 Dynamics In after four years of negative growth rates the gross premium recorded a slight positive growth by 0.4 compared to. The gross premium in was 1,198 million. By this the negative growth rate of the gross premium was stopped which from 2009 till fluctuated between -2.8 and During the period between 2005 and 2007 the rates achieved double-digit growth, in 2008 the growth rates accounted for6.9. In the nonlife premium written came to 863 million down by-0.6 compared to when it was 869 million. In life insurance premiums continued their trend from with an increase of 3.1 totaling 335 million. Life insurance share of gross premium was28 in which was the highest life premium share of gross premium till now, and in 2007 when it peaked Total claims paid in amounted to 617million with a growth rate of 1 against. Insurance Market in the Republic of Croatia - Dynamics of the Insurance Market in the Period from of the Insurance Market 5 in the Period from Total - Gross premium written and claims paid (gross amounts) 02 Non-Life - Gross premium written and claims paid (gross amounts) 03 Life - Gross premium written and claims paid (gross amounts) Year Year Year Gross premiums written in EUR 000 Index Claims paid, gross amounts in EUR 000 Index 5 Data for the period source Croatian Financial Services Supervisory Agency; Data for the period delivered by insurance companies through the web application HUO_Statistika 801, , , , , , ,080, , ,196, , ,278, , ,242, , ,220, , ,207, , ,193, , ,198, , Gross premiums written in EUR 000 Index Claims paid, gross amounts in EUR 000 Index 622, , , , , , , , , , , , , , , , , , , , , , Gross premiums written in EUR 000 Index Claims paid, gross amounts in EUR 000 Index 178, , , , , , , , , , , , , , , , , , , , , ,

16 Insurance Market in the Republic of Croatia - Dynamics of the Insurance Market in the Period from Graph 01 of non-life and life insurance in the GWP for the period Non-Life Life Graph 02 Premium growth index for the period Growth index of GWP 100 Premium growth index - Non Life Premium growth index - Life Graph 03 Growth index of claims paid for the period Growth index of total claims paid Growth index of claims paid - Non Life Growth index of claims paid Life 15

17 Insurance Market in the Republic of Croatia - Dynamics of the Insurance Market in the Period from of gross premium written in GDP in 05 Premium per capita for the period (in EUR) 6 Based on a mid-year estimate of the population (Croatian Chamber of Commerce) 06 Premium per employee for the period (in EUR 000) Year Year Year Total GWP Non-Life in in GDP GWP in EUR 000 Index () EUR 000 Index 801, , , , , , , , , ,080, , , ,196, , , ,278, , , ,242, , , ,220, , , ,207, , , ,193, , , ,198, , , Total GWP in EUR , , , , , , , , , ,080, , , ,196, , , ,278, , , ,242, , , ,220, , , ,207, , , ,193, , , ,198, , , Total GWP in EUR 000 Premium income per capita in EUR Number of employees in insurance companies on 31st Dec Non-Life GWP in EUR ,083 6, ,002 6, ,493 6, ,080,096 7, ,196,920 9, ,278,938 10, ,242,659 11, ,220,768 11, ,207,525 11, ,193,427 11, ,198,461 11, Life in GDP GWP in () EUR 000 Index Non-Life premium per capita in EUR Premium per employee in EUR 000 Life GWP in EUR 000 in GDP () Life insurance premium per capita in EUR 16

18 Insurance Market in the Republic of Croatia - Dynamics of the Insurance Market in the Period from Graph 04 of gross premium written In GDP in 2003 Total GWP Non-Life GWP Life GWP Graph 05 Premium per capita for the period (in EUR) Total GWP per capita Non-Life GWP per capita Life GWP per capita Graph 06 Premium per employee for the period (in EUR 000) Premium per employee in EUR 000 Gross premium share in GDP in lay by 2.78 reflecting a slight improvement compared to when it stood at The non-life premium share in GDP in lay by 2 and the life premium share was These shares are higher compared to neighbouring Eastern countries, on the other hand compared to the developed EU countries the Republic of Croatia is standing behind. Gross premium per capita was in 281, non-life 202 and life merely 79. Compared to premium per capita recorded a slight increase. According to these indicators the Republic of Croatia is still far below an average of developed countries, which on the other hand may indicate a potential for further growth of the insurance market. Premium per employee in accounted for 104, and the number of persons employed at insurance companies was 11,533. Premiums per employee grew in the period from 2003 to 2005; in 2006 they constantly decreased until. This was caused by the rapid increase of employees at insurance companies more than 1,000 in 2006, more than 1,300 in 2007, in 2008 by 1,184 employees and in 2009 by 640 employees. In 2010this trend was stopped and the number of employees was reduced by39, while in 2011 the number of employees continued its growth by 143, in by 328 new employed persons. In the number of employees was reduced by 83 employees. The increase and maintenance of this number of employees partially caused by the regulations of the new Insurance Act regarding insurance intermediaries, can mean that the new sales channels, utilized more and more by Croatian insurers particularly banc assurance and the web, may not necessarily result in a reduction of the number of employees in insurance. Beside the new insurance distribution channels the salary staff, i.e. the company's employed salesmen will most likely retain their position especially for long-term personal insurance: health, accident and life insurance, which will progressively play a significant role in supplying Croatian third age citizens with assurance. The question is, how will the increase of the number of employees affect the business costs which are relatively high with the Croatian insurance companies and will premium growth and drop follow the employment policy. 17

19 Insurance Market in the Republic of Croatia - Dynamics of the Insurance Market in the Period from Claims paid, gross amounts (in EUR 000) Year Total Claims paid, gross amounts in EUR 000 Index Non-Life Claims paid, gross amounts Life Claims paid, gross amounts in EUR 000 in EUR 000 Index Index 391, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Graph 07 Claims paid, gross amounts (in EUR 000) , , , , , , , , , , Total Claims paid, gross amounts in EUR 000 Non-Life Claims paid, gross amounts in EUR 000 Life Claims paid, gross amounts in EUR

20 Insurance Market in the Republic of Croatia - Dynamics of the Insurance Market in the Period from Earned premiums, gross amounts 7 Claims incurred, gross amounts in in EUR 000 Index 8 EUR 000 kn Index 594, , , , , , , , , , , , , , , , , , , , , , Ratio () Year Non-Life - Claims incurred and earned premiums in EUR Earned premium in non-life insurance, the gross amount is the result of gross premium written + gross amount of unearned on gross amount of earned premium on Claims incurred in non-life insurance comprise the cost of claimspaid and adjustment in the outstanding claims provision (gross amounts) Graph Life - Claims incurred and earned premiums (in EUR 000) Earned premiums, gross amounts in EUR 000 Claims incurred, gross amounts in EUR 000 Ratio

21 Insurance Market in the Republic of Croatia - Dynamics of the Insurance Market in the Period from Life - Claims incurred and earned premiums (in EUR 000) Year Earned premiums, gross amounts 9 in EUR 000 Index Claims incurred, gross amounts 10 in EUR 000 Index Ratio () 178, , , , , , , , , , , , , , , , , , , , , , Earned premium in life insurance, the gross amount is the result of gross premium written + gross amount of unearned on gross amount of earned premium on Claims incurred in life insurance comprise the cost of claim spaid and adjustment in the outstanding claims provision (gross amounts) Graph Life insurance for the period (in EUR 000) Earned premiums, gross amounts in EUR 000 Claims incurred, gross amounts in EUR 000 Ratio

22 Insurance Market in the Republic of Croatia - Dynamics of the Insurance Market in the Period from Loss ratio Expense ratio Combined ratio Year Insurance industry 11 basics 11 Source: Croatian Financial Services Supervisory Agency Total claims paid in amounted to 617 million and against indicated a growth rate of 1. This growth rate was conditioned by a high growth rate of claims paid in life insurance by 10.1, while the growth rate of claims paid in non-life insurance recorded a drop by-3.1. In life insurance the growth rates of claims paid were higher than the growth rates of claims paid in nonlife insurancethrough all the years except This growth can be attributed to the expiry of the tenyear insurance that had been purchased after 1995, when the Croatian currency stabilized and a faster growth of life premiums began. In 2009 the growth rate of claims paid was 36.4, in 2010 it was 11.5, in and in it was 9.4 which resulted from the influence of the financial and economic crisis. Claims incurred in non-life insurance in recorded a drop of even -11.3, thus the ratio of claims incurred to earned premiums in decreased and stood at 44.1 compared to and the 48.8 ratio. In life insurance the amounts for claims incurred posted a growth of 10.6 in which indicatesan increase in expiry of insurance as well as a continued influence of the financial and economic crisis on the changes in life insurance policies, which are not in favour of insurance companies in circumstances of a decreased premium income. The ratio of claims incurred and earned premiums in was 61.2 and showed an increase in relation to and the 57.1 ratio. Loss ratio, expense ratio and combined ratio represent a useful indicatorin the analysis of the success of insurance company's underlying operations. Loss ratio is considered the ratio of the sum of claims paid, adjustment in the claims provision and change of other technical provisions to earned premiums (multiplied with 100); in it stood at 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 it stood at very high The ordinary range of this indicator in insurance business is 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 it stood at very high

23 Insurance Market in the Republic of Croatia - Review of the Insurance Market in 02 Review of the Insurance 12 Market in 12 Data for the period source Croatian Financial Services Supervisory Agency; Data for the period delivered by insurance companies through the web application HUO_Statistika Graph Structure of gross premium in Motor Vehicle Liability Accident 5.47 Fire and Natural Disasters Motor Vehicle (Casco) Other Damage to Property All Life Others 22

24 Insurance Market in the Republic of Croatia - Review of the Insurance Market in The four years of continuous decline of gross premium in the Croatian Insurance market stopped in, the decline had started in 2009 under the influence of the financial and economic crisis on the insurance market and which in earlier periods used to record growth rates in double digits. In the gross premium grew by insignificant 0.4 compared to. Insurance companies underwriting operations show a negative combined ratio (over 100) through a longer period, which is mostly conditioned by the growing and high expense ratio, while the loss ratio is satisfactory at a level below 70. In the structure of gross premium in the motor liability insurance share accounted for significant 32.81, followed by life insurance 27.97, other non-life insurance 12.65, other damage to property 7.38, motor vehicle (casco) 7.3, fire and other perils insurance 6.42, accident insurance Motor liability insurance premiums in amounted to 393 million compared to they increased by 1.3. Because of the significant growth of gross premium its share in the structure of gross premium increased from in to in. In 2009 the motor liability premium remained the same as in 2008, and in 2008 it rose by 7.4 in relation to In this period the decline of the motor liability premium share in gross premium was stopped, which lasted until In 2001 this share was 32.7 and 36.1 in This trend of decline of the premium share in motor liability over the past years was considered an improvement in the premium structure in the Croatian insurance market. In the number of policies issued in motor liability insurance was 2.03 million, compared to when it increased by2.4. By the end of there were 779 thousand (in 776 thousand) life insurance policies generating 294 million in premiums (in 281 million), and 608 thousand (in 569 thousand) supplementary life insurance (accident) policies generating 20.9 million (21.8 million) in premiums. Annuity insurance, which should supply third-age insures with additional income, as pensioners can expect smaller pensions, was low. In there were only 1,993, which is less compared to 2,110 in of these classes of insurance generating a premium of merely 1.46 million ( 1.08 million in ).The number of policies issued in life insurance linked with units of investment funds decreased by -8.3 and in amounted to 48 thousand and the premium income fell by -10,5 compared to and in it amounted to 17.1 million. In the accident insurance premium share in the structure of gross premium declined again to 5.47 from 5.58 in, and in its absolute amount it was lower by and generated 65.5 million by the end of. The accident insurance share from 2003 and 7.4 recorded a gradual fall. Health insurance premiums had an outstanding trend of surging up till In health insurance premiums rose by 4.5, the gross premium amounted to 32.9 million. The motor vehicle (casco) premium share in gross premium in the year was 7.3, while in the year before it was The motor vehicle (casco) premium recorded a drop by -8 compared to, representing a high rate of decline which since 2009 has floated around -10 per annum. The total of premium in this insurance class in was 87.5 million and the number of policies issued was 364 thousand. Gross premium in property insurance in amounted to million, of which premiums in all other property insurance amounted to 88.3 million, and premiums in fire and other perils insurance to 76.9 million. In the gross premium in property insurance recorded a drop by -3.3 compared to, in all other property insurance the decrease was by -5.6 and in fire and other perils insurance Gross premium in property insurance in 2009 amounted to million at the most, and till that year it recorded a constant growth since 2004 when the premium amounted to million. The number of policies issued in fire insurance in was 511 thousand and recorded an increase of 0.4 compared to. In all other property insurance the number of policies issued in was 599 thousand with a rise of 1.2 compared to. The premium growth in was registered in the following descending order: railway locomotives and rolling stock insurance by 54.3, annuity insurance by 34.9, aircraft liability insurance by 18.7, goods-in-transit insurance by 7.6, other liability insurance by 7.4, liability insurance arising out of use of vessels by 5.4, life and health insurance by 4.5, diverse financial loss insurance by 4.4 and motor vehicle liability insurance by 1.3. Insurance classes which recorded a decrease in are surety ship insurance by -22.4, life or annuity insurance linked with units of investment funds by -10.5, travel insurance by -9.5, motor vehicle insurance by -8, marriage and birth assurance by -7.8, other damage to property by -5.6, supplemental life insurance by -4, legal protection insurance and aircraft hull insurance by -3.6, marine liability by -3.1, accident insurance by -1.6, credit insurance by -1, fire and other perils insurance by

25 Insurance Market in the Republic of Croatia - Review of the Insurance Market in 11 Gross premium written by groups of classes (in EUR) ACCIDENT HEALTH MOTOR VEHICLE CASCO RAILWAY ROLLING STOCK - CASCO AIRCRAFT - HULL SHIPS - HULL GOODS-IN-TRANSIT FIRE AND NATURAL DISASTERS OTHER DAMAGE TO PROPERTY MOTOR VEHICLE LIABILITY AIRCRAFT LIABILITY MARINE LIABILITY OTHER LIABILITY INSURANCE CREDIT SURETYSHIP FINANCIAL LOSS LEGAL PROTECTION TRAVEL INSURANCE LIFE GROUP OF CLASSES ANNUITY INSURANCE SUPPLEMENTAL LIFE INSURANCE MARRIAGE AND BIRTH ASSURANCE INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS UNIT LINKED TONTINE INSURANCE WITH PAID-UP SUM ASSURED TOTAL (NON-LIFE, CLASSES 01-18) TOTAL (LIFE, CLASSES 19-25) T O T A L (CLASSES 01-25) Gross premium written in EUR Gross premium Written in EUR Index 13/12 66,553, ,520, ,513, ,935, ,136, ,509, , , , ,181, ,955, ,223, ,815, ,332, ,443, ,967, ,641, ,399, ,180, ,230, , , ,738, ,996, ,085, ,919, ,457, ,270, ,062, , ,840, ,359, , , ,293, ,604, ,861, ,667, ,086, ,464, ,815, ,933, ,088, ,003, ,115, ,099, ,459, ,292, ,967, ,168, ,193,426, ,198,460,

26 Insurance Market in the Republic of Croatia - Review of the Insurance Market in 12 Insurance premium structure in (in EUR) o ƒ ƒfi fi Prevention share Operation expenses share Gross premium written 44,218, ,390 21,162,473 65,520,628 21,039,602 17,347 11,878,535 32,935,484 68,622, ,150 18,632,933 87,509, , , ,260 1,114, ,037 1,181,382 18,886,045 8,444 4,329,283 23,223,773 5,274,317 5,194 2,052,616 7,332,127 56,828,563 1,027,165 19,111,922 76,967,651 68,459, ,329 19,340,074 88,399, ,135,368 3,543,450 49,551, ,230, , , ,291 4,181,508 7, ,388 4,996,907 30,994,370 22,149 9,902,773 40,919,292 11,166,072-8,104,895 19,270, , , ,584 10,099,812 7,186 2,252,405 12,359, , , ,232 4,419,780 21,875 2,162,371 6,604, ,279,731-51,388, ,667,947 1,301, ,699 1,464,733 14,705,998 77,914 6,149,123 20,933, , ,393 1,003,592 12,292,615-4,806,483 17,099, ,749,985 5,653, ,888, ,292, ,417,577 77,914 62,672, ,168, ,167,562 5,731, ,561,452 1,198,460,756 ACCIDENT HEALTH MOTOR VEHICLE CASCO RAILWAY ROLLING STOCK - CASCO AIRCRAFT - HULL SHIPS - HULL GOODS-IN-TRANSIT FIRE AND NATURAL DISASTERS OTHER DAMAGE TO PROPERTY MOTOR VEHICLE LIABILITY AIRCRAFT LIABILITY MARINE LIABILITY OTHER LIABILITY INSURANCE CREDIT SURETYSHIP FINANCIAL LOSS LEGAL PROTECTION TRAVEL INSURANCE LIFE ANNUITY INSURANCE SUPPLEMENTAL LIFE INSURANCE MARRIAGE AND BIRTH ASSURANCE INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS UNIT LINKED TONTINE GROUP OF CLASSES INSURANCE WITH PAID-UP SUM ASSURED TOTAL (NON-LIFE, CLASSES 01-18) TOTAL (LIFE, CLASSES 19-25) T O T A L (CLASSES 01-25)

27 Insurance Market in the Republic of Croatia - Review of the Insurance Market in 13 Premiums earned in (in EUR) ACCIDENT HEALTH MOTOR VEHICLE CASCO RAILWAY ROLLING STOCK - CASCO AIRCRAFT - HULL SHIPS - HULL GOODS-IN-TRANSIT FIRE AND NATURAL DISASTERS OTHER DAMAGE TO PROPERTY MOTOR VEHICLE LIABILITY AIRCRAFT LIABILITY MARINE LIABILITY OTHER LIABILITY INSURANCE CREDIT SURETYSHIP FINANCIAL LOSS LEGAL PROTECTION TRAVEL INSURANCE LIFE GROUP OF CLASSES ANNUITY INSURANCE SUPPLEMENTAL LIFE INSURANCE MARRIAGE AND BIRTH ASSURANCE INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS UNIT LINKED TONTINE INSURANCE WITH PAID-UP SUM ASSURED TOTAL (NON-LIFE, CLASSES 01-18) TOTAL (LIFE, CLASSES 19-25) T O T A L (CLASSES 01-25) Gross premium written in EUR Outward reinsurance premium in EUR Changes of gross unearned premium provisions (+ or -) in EUR Changes of unearned premium provisions, reinsurance share (+ or -) in EUR Earned premiums in EUR (net amounts) 65,520,628 5,367, , ,890 59,459,142 32,935, ,966 1,435, ,354,411 87,509,763 2,324,206-4,450, ,174 89,273, ,260 14, ,071-17, ,621 1,181, , ,218-17, ,133 23,223,773 14,931, , ,004 7,851,232 7,332,127 1,778,451-70,429-73,740 5,550,366 76,967,651 30,595, , ,199 44,972,921 88,399,536 17,527, , ,578 71,624, ,230,046 17,585,168 2,046, , ,176, , ,120 17,360-17,040 46,771 4,996,907 2,523,554 64,707 26,016 2,434,661 40,919,292 14,107, , ,956 26,331,314 19,270,967 2,821,564 3,834,838-11,727 12,602, , , ,692 30, ,864 12,359,404 6,586,605 1,292, ,202 5,149, , ,334-89, ,525 6,604,026 1,156,287-1,600,481 9,487 7,057, ,667,947 8,792,277-19, ,896,271 1,464, ,464,737 20,933,035 2,564,657 8,941-25,688 18,333,749 1,003,592 31, ,983 17,099,098 11, ,088, ,292, ,049,956 5,248, , ,394, ,168,405 11,399,577-10,765-24, ,754,801 1,198,460, ,449,533 5,237, ,830 1,062,149,761 26

28 Insurance Market in the Republic of Croatia - Review of the Insurance Market in Number of insurance policies issued by groups of classes Number of insurance policies u Number of insurance policies Index 13/12 2,453, ,452, , , , , , , , , , , , , ,977, ,026, , , , , , , , , , , , , , , , , , , , , , , ,529, ,713, ,402, ,440, ,932, ,154, ACCIDENT HEALTH MOTOR VEHICLE CASCO RAILWAY ROLLING STOCK - CASCO AIRCRAFT - HULL SHIPS - HULL GOODS-IN-TRANSIT FIRE AND NATURAL DISASTERS OTHER DAMAGE TO PROPERTY MOTOR VEHICLE LIABILITY AIRCRAFT LIABILITY MARINE LIABILITY OTHER LIABILITY INSURANCE CREDIT SURETYSHIP FINANCIAL LOSS LEGAL PROTECTION TRAVEL INSURANCE LIFE ANNUITY INSURANCE SUPPLEMENTAL LIFE INSURANCE MARRIAGE AND BIRTH ASSURANCE INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS UNIT LINKED TONTINE GROUP OF CLASSES INSURANCE WITH PAID-UP SUM ASSURED TOTAL (NON-LIFE, CLASSES 01-18) TOTAL (LIFE, CLASSES 19-25) T O T A L (CLASSES 01-25)

29 Insurance Market in the Republic of Croatia - Review of the Insurance Market in 15 Loss experience in by groups of classes ACCIDENT HEALTH MOTOR VEHICLE CASCO RAILWAY ROLLING STOCK - CASCO AIRCRAFT - HULL SHIPS - HULL GOODS-IN-TRANSIT FIRE AND NATURAL DISASTERS OTHER DAMAGE TO PROPERTY MOTOR VEHICLE LIABILITY AIRCRAFT LIABILITY MARINE LIABILITY OTHER LIABILITY INSURANCE CREDIT SURETYSHIP FINANCIAL LOSS LEGAL PROTECTION TRAVEL INSURANCE LIFE GROUP OF CLASSES ANNUITY INSURANCE SUPPLEMENTAL LIFE INSURANCE MARRIAGE AND BIRTH ASSURANCE INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS UNIT LINKED TONTINE INSURANCE WITH PAID-UP SUM ASSURED TOTAL (NON-LIFE, CLASSES 01-18) TOTAL (LIFE, CLASSES 19-25) T O T A L (CLASSES 01-25) Number of reserved claims on 1st Jan Number of claims reported in a year paid Number of settled claims declined Number of unsettled claims on 31st Dec 7,769 24,520 17,259 7,579 7,451 21, , ,228 23,091 24,219 28, , ,023 10,920 27, ,139 1, ,992 4, ,234 36,417 28,767 5,907 8,977 12,273 98,977 83,566 12,416 15,268 40,955 86,150 78,960 10,939 37, ,113 17,936 12,749 4,804 7, ,102 3, ,963 1, ,582 79, ,342 55,770 54, , ,481 5,668 4,184 1,790 3, ,459 6, , , ,298 77, ,173 5,917 68,753 65,994 2,598 6, , , ,292 80, ,251 28

30 Insurance Market in the Republic of Croatia - Review of the Insurance Market in 16 Number of claims paid by groups of classes Number of claims paid Number of claims paid Index 13/12 17, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ACCIDENT HEALTH MOTOR VEHICLE CASCO RAILWAY ROLLING STOCK - CASCO AIRCRAFT - HULL SHIPS - HULL GOODS-IN-TRANSIT FIRE AND NATURAL DISASTERS OTHER DAMAGE TO PROPERTY MOTOR VEHICLE LIABILITY AIRCRAFT LIABILITY MARINE LIABILITY OTHER LIABILITY INSURANCE CREDIT SURETYSHIP FINANCIAL LOSS LEGAL PROTECTION TRAVEL INSURANCE LIFE ANNUITY INSURANCE SUPPLEMENTAL LIFE INSURANCE MARRIAGE AND BIRTH ASSURANCE INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS UNIT LINKED TONTINE GROUP OF CLASSES INSURANCE WITH PAID-UP SUM ASSURED TOTAL (NON-LIFE, CLASSES 01-18) TOTAL (LIFE, CLASSES 19-25) T O T A L (CLASSES

31 Insurance Market in the Republic of Croatia - Review of the Insurance Market in 17 Claims paid, gross amounts by groups of classes (in EUR) ACCIDENT HEALTH MOTOR VEHICLE CASCO RAILWAY ROLLING STOCK - CASCO AIRCRAFT - HULL SHIPS - HULL GOODS-IN-TRANSIT FIRE AND NATURAL DISASTERS OTHER DAMAGE TO PROPERTY MOTOR VEHICLE LIABILITY AIRCRAFT LIABILITY MARINE LIABILITY OTHER LIABILITY INSURANCE CREDIT SURETYSHIP FINANCIAL LOSS LEGAL PROTECTION TRAVEL INSURANCE LIFE GROUP OF CLASSES ANNUITY INSURANCE SUPPLEMENTAL LIFE INSURANCE MARRIAGE AND BIRTH ASSURANCE INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS UNIT LINKED TONTINE INSURANCE WITH PAID-UP SUM ASSURED TOTAL (NON-LIFE, CLASSES 01-18) TOTAL (LIFE, CLASSES 19-25) T O T A L (CLASSES 01-25) Claims paid, gross amounts in EUR Claims paid, gross amounts in EUR Index 13/12 17,347, ,276, ,303, ,484, ,079, ,518, , , , , ,217, ,016, ,723, ,891, ,669, ,322, ,528, ,352, ,837, ,294, , , , , ,271, ,880, ,127, ,809, , , ,179, ,460, , , ,525, ,215, ,621, ,429, ,965, ,187, ,324, ,696, , , ,873, ,445, ,398, ,374, ,577, ,545, ,976, ,919,

32 Insurance Market in the Republic of Croatia - Review of the Insurance Market in 18 Number of reserved claims by groups of classes Number of reserved claims on 31st Dec Number of reserved claims on 31st Dec Index , , , , , , , , , , , , , , , , , , , , , , , , ACCIDENT HEALTH MOTOR VEHICLE CASCO RAILWAY ROLLING STOCK - CASCO AIRCRAFT - HULL SHIPS - HULL GOODS-IN-TRANSIT FIRE AND NATURAL DISASTERS OTHER DAMAGE TO PROPERTY MOTOR VEHICLE LIABILITY AIRCRAFT LIABILITY MARINE LIABILITY OTHER LIABILITY INSURANCE CREDIT SURETYSHIP FINANCIAL LOSS LEGAL PROTECTION TRAVEL INSURANCE LIFE ANNUITY INSURANCE SUPPLEMENTAL LIFE INSURANCE MARRIAGE AND BIRTH ASSURANCE INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS UNIT LINKED TONTINE GROUP OF CLASSES INSURANCE WITH PAID-UP SUM ASSURED TOTAL (NON-LIFE, CLASSES 01-18) TOTAL (LIFE, CLASSES 19-25) T O T A L (CLASSES 01-25)

33 Insurance Market in the Republic of Croatia - Review of the Insurance Market in 19 Outstanding claims provision, gross amounts by groups of classes (in EUR) ACCIDENT HEALTH MOTOR VEHICLE CASCO RAILWAY ROLLING STOCK - CASCO AIRCRAFT - HULL SHIPS - HULL GOODS-IN-TRANSIT FIRE AND NATURAL DISASTERS OTHER DAMAGE TO PROPERTY MOTOR VEHICLE LIABILITY AIRCRAFT LIABILITY MARINE LIABILITY OTHER LIABILITY INSURANCE CREDIT SURETYSHIP FINANCIAL LOSS LEGAL PROTECTION TRAVEL INSURANCE LIFE GROUP OF CLASSES ANNUITY INSURANCE SUPPLEMENTAL LIFE INSURANCE MARRIAGE AND BIRTH ASSURANCE INSURANCE LINKED WITH UNITS OF INVESTMENT FUNDS UNIT LINKED TONTINE INSURANCE WITH PAID-UP SUM ASSURED TOTAL (NON-LIFE, CLASSES 01-18) TOTAL (LIFE, CLASSES 19-25) T O T A L (CLASSES 01-25) Outstanding claims provision, gross amounts in EUR u Outstanding claims provision, gross amounts in EUR u Index 13/12 36,447, ,748, ,981, ,073, ,872, ,350, , , , ,408, ,790, ,731, ,350, ,571, ,347, ,358, ,751, ,359, ,092, ,725, , , ,568, ,061, ,776, ,737, ,714, ,365, ,277, ,030, ,067, ,461, , , , , ,746, ,977, , , ,874, ,212, , , , , ,233, ,030, ,935, ,517, ,168, ,548,

34 Insurance Market in the Republic of Croatia - Review of the Insurance Market in 33

35 34

36 13 NON-LIFE INSURANCE (1-18) 03 NOTE: The amount of Gross premium written in non-life insurance comprises the premium of co-insurance: - in to a total of 123,007 - in to a total of 633,090 - in 2011 to a total of 1,152,102 - in 2010 to a total of 1,333,316 - in 2009 to a total of 775, Data for the period source Croatian Financial Services Supervisory Agency; Data for period delivered by insurance companies through the web application HUO_Statistika 35

37 Non-life insurance-accident Insurance 01 Accident Insurance Every year following the year 2009 the gross premium written in accident insurance recorded a decrease, thus in compared to it was lower by 1.6 and amounted to 65.5 million. The ratio between gross premium written and claims paid showed a fall of the share of claims paid in gross premium written which in the period of observation as from 2003 till declined from to Year CP share in GWP Total 30,685,323 21,313,885 1,890,511 1,106,969 1,578, , ,736 7,545,277 65,520,628 12,031,195 1,865,022 1,493,625 62, ,033 57,602 57, ,897 16,276, Gross premium written Claims paid CP share in GWP 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 falls to group accident insurance for children and pupils against consequential loss and special accident insurance for teenagers, then followed by a share under the group personal accident insurance in the case of accidents at or outside regular work, while the smallest share brings group accident insurance of guests, performance and show visitors, excursionists and tourists against consequential loss by The accident GWP share in non-life gross premium was 7.59 and in total gross premium it was By this the trend of the falling premium share compared to the year before continued. Likewise the share of claims paid of this insurance class in non-life claims paid was by 3.96 lower in relation to the total of claims paid The structure of accident insurance premium in compared to is very alike, the largest premium share by falls to personal accident insurance in case of accidents at or outside regular work followed by motor vehicle passenger insurance and accident insurance against consequential loss by Accident - Gross premium written for the period Accident - Claims paid for the period Year Year Gross premium written in EUR 000 Index Non-Life Total GWP 59, , , , , , , , , , , Claims paid, gross amounts in EUR 000 Index Non-Life Total claims 20, , , , , , , , , , ,

38 Non-life insurance-accident Insurance 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80, Gross premium written in EUR 000 Claims paid, gross amounts in EUR 000 Graph 11 Accident - Gross premium written and claims paid Graph 12 Accident - Premium share () Non-Life () Total GPW 6.00 Graph 13 Accident - s of gross claims paid () Non-Life () Total claims 37

39 Non-life insurance-accident Insurance 22 Accident - Gross premium written and number of policies issued in Group of classes / risks Personal accident insurance in the case of accidents at or outside regular work Motor vehicle passenger insurance and accident insurance against consequential loss at special occupations Accident insurance for children and pupils against consequential loss and special accident insurance for teenagers Accident insurance of guests, performance and show visitors, excursionists and tourists Accident insurance of consumers, subscribers, beneficiaries of other public services Other accident insurance against consequential loss Compulsory accident insurance for passengers in public transport Other accident insurance against consequential loss TOTAL Accident - Number and amounts of claims paid in Group of classes / risks Personal accident insurance in the case of accidents at or outside regular work Motor vehicle passenger insurance and accident insurance against consequential loss at special occupations Accident insurance for children and pupils against consequential loss and special accident insurance for teenagers Accident insurance of guests, performance and show visitors, excursionists and tourists Accident insurance of consumers, subscribers, beneficiaries of other public services Other accident insurance against consequential loss Compulsory accident insurance for passengers in public transport Other accident insurance against consequential loss TOTAL 01 38

40 Non-life insurance-accident Insurance Gross premium written in EUR Number of policies issued - risks 30,685, , ,313, ,057, ,890, , ,106, , ,578, , , , , ,545, , ,520, ,452, Number of claims paid - risks Claims paid, gross amount in EUR 8, ,031, ,865, , ,493, , , , , , , ,276,

41 Non-life insurance-health Insurance 02 Health Insurance The gross premium in health insurance in recorded a growth of 4.5 compared to the year before which in view of the negative trends in the past years denoted a positive rise. A reason for that are activities in the market of complementary health insurance against the difference above the coverage provided by mandatory health insurance (group ) which led to a premium growth in health insurance. Although the premium is by 4.5 higher, with respect to the negative trends in the past period, it still hasn t reached the 2007 level, indicating that the market shows growth potential. In view of the growth of the complementary health insurance market it can be expected that the insurance premium will grow in the forthcoming period and as a consequence the gross premium written in health insurance will follow. Claims paid in gross premium written in were at 65 while in they were 77, and in showing that the growth trend of the share of claims paid in gross premium written did not continue. The reason for that lies in the fact that the share in gross premium written in complementary health insurance rose in relation to supplementary health insurance in which insureds decide on medical care having preventive character, and the drop of the average claim arising out of supplementary health insurance by 12. It can be expected that in the next periods the share of claims paid in premium written will remain lower since a further increase of premium written of complementary health insurance is anticipated. The higher premium written compared to the years before resulted from the growth of premium written in group The expected further growth of the complementary health insurance market may bring to a growth of gross premium written of supplementary health insurance which would mean an increase of the share of health insurance in the total premium written. 24 Health - Gross premium written for the period Health - Claims paid for the period Year Year Gross premium written in EUR 000 Index Non-Life Total GWP 13, , , , , , , , , , , Claims paid, gross amounts in EUR 000 Index Non-Life Total claims 13, , , , , , , , , , ,

42 Non-life insurance-health Insurance 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40, Gross premium written in EUR 000 Claims paid, gross amounts in EUR 000 Graph Health - Gross premium written and claims paid Graph 15 Health - Premium share Non-Life () Total GWP Graph 16 Health - s of gross claims paid () Non-Life 3.00 () Total claims

43 Non-life insurance-health Insurance 26 Health - Gross premium written and number of policies issued in Group of classes / risks Mandatory insurance against costs incurred in case of industrial injury and occupational disease Complementary health insurance against the difference above the coverage provided by mandatory health insurance Supplementary health insurance for higher standards of health services than those stipulated by mandatory health insurance Private health insurance Other voluntary health insurance TOTAL Health - Number and amounts of claims paid in Group of classes / risks Mandatory insurance against costs incurred in case of industrial injury and occupational disease Complementary health insurance against the difference above the coverage provided by mandatory health insurance Supplementary health insurance for higher standards of health services than those stipulated by mandatory health insurance Private health insurance Other voluntary health insurance TOTAL Health - Number of insureds in Group of classes / risks Mandatory insurance against costs incurred in case of industrial injury and occupational disease Complementary health insurance against the difference above the coverage provided by mandatory health insurance Supplementary health insurance for higher standards of health services than those stipulated by mandatory health insurance Private health insurance Other voluntary health insurance TOTAL 02 42

44 Non-life insurance-health Insurance Gross premium written in EUR Number of policies issued 49, ,049, , ,234, , ,602, , ,935, , Supplementary health insurance amounts to 61 of the total health insurance premium written representing a considerate drop compared to the year before when it accounted for The increase of the total health insurance premium written brought to a premium growth. The share of complementary health insurance in the health insurance gross premium written accounted for 27.5, while in it accounted for 12.1 and in 2011 for 10.3 Number of claims paid Claims paid, gross amount in EUR , , ,839, , ,620, , ,979, , ,484, Number of insureds through a year Number of insureds (active policies) on 31th Dec ,217 89, , , ,947 29, , , It should be noted that a further premium growth of group may be expected since the majority of premiums are still present with the HZZO so that the insurers share in the total complementary health insurance portfolio compared to the HZZO portfolio (which exceeds a billion kuna) is still beneath 5. The average claim in supplementary health insurance is which is by 12 lower compared to the year before. The average claim in complementary health insurance (02.02.) is which represents an additional drop compared to the year before ( 16.11, , ) and with view to the former mentioned it may be expected that in the forthcoming period the health insurance market shall develop mostly in complementary insurance. The change in the ratio of premium written in complementary and supplementary health insurance in favour of complementary health insurance with lower claims paid in complementary health insurance and in the forthcoming periods will mean a decrease of the share of claims paid in premium written. Private health insurance has still not been defined by the essential legal acts and has not been offered in the insurance market. 43

45 Non-life insurance - Motor Vehicle (Casco) Insurance 03 Motor Vehicle (Casco) Insurance Five years in a row the motor vehicle (casco) insurance premium continues its falling trend and in it accounted beneath the figures recorded in The gross premium written was 87.5 million, while claims paid (without any reserves) accounted for 81.5 million, so that the total combined loss and expense ratio was extremely negative in the entire market (the claims practically consumed the entire premium income). Taking these figures into consideration it may be stated that casco is still cheap and nonprofitable and that nobody buys it (every sixth vehicle has casco insurance). Thus we must ask ourselves, do clients or other market players need such a casco product, is it time that the market turns to casco coverage with decreased coverage (solely with franchise, only burglary or traffic accident etc.); and which is the trend in the neighbouring countries which have already experienced motor liability liberalisation. The stagnation of the number of policies continued by 3 from 284,718 to 276,669 (only for class motor hull insurance for self-propelled vehicles). Under the presumption that all insurance companies have presented data on the number of policies against the previous period in the same way and have not changed their methodology during. Motor vehicle insurance has still been following the sale of new motor vehicles, so that these results may be considered as moderately satisfying. Reasons for that may lie with the acting of insurers who have turned more to partial casco insurance, so there are products like the Mini/Flexi Casco offered by Croatia osiguranje d.d. or the Mini Casco offered by Generali osiguranje d.d. or partial casco insurance offered by Uniqa osiguranje d.d. The trend of decline of the premium share in gross premiums continued and came down to 7.30 (2011 at 8.72 and 7.97 in the year before). On the other hand in the decline of the gross premium written was not followed by a drop of amounts of claims paid which were by merely 0.7 compared to. 29 Motor (Casco) - Gross premium written for the period Motor (Casco) - Claims paid for the period Year Year () Gross premium written in EUR 000 Index Non-Life Total GWP 94, , , , , , , , , , , Claims paid, gross amounts in EUR 000 Index Non-Life () Total claims 65, , , , , , , , , , ,

46 Non-life insurance - Motor Vehicle (Casco) Insurance 0 20,000 40,000 60,000 80, , , , , Gross premium written in EUR 000 Claims paid gross amounts in EUR 000 Graph Motor (Casco) - Gross premium written and claims paid Graph 18 Motor (Casco) - Premium share Non-Life () Total GWP () Non-Life () Total claims Graph 19 Motor (Casco) - s of gross claims paid - 45

47 Non-life insurance - Motor Vehicle (Casco) Insurance 31 Motor (Casco) - Gross premium written and number of policies issued in Group of classes / risks Motor hull insurance for self-propelled vehicles Motor hull insurance for non-self-propelled vehicles Other motor hull insurance TOTAL Motor (Casco) - Number and amounts of claims paid in Group of classes / risks Motor hull insurance for self-propelled vehicles Motor hull insurance for non-self-propelled vehicles Other motor hull insurance TOTAL 03 46

48 Non-life insurance - Motor Vehicle (Casco) Insurance Gross premium written in EUR Number of policies issued 80,554, , , , ,336, , ,509, , Number of claims paid Claims paid, gross amount in EUR 95, ,349, , , ,565, , ,518,

49 Non-life insurance - Railway Rolling Stock Casco Insurance 04 Railway Rolling Stock Casco Insurance Compared to the gross premium written in this class was by 54.3 higher and amounted to 885,260. This insurance class had a share of 0.1 in total non-life gross premium written and a share of 0.07 in total gross premium written. In the period of observation from 2003 to the share of claims paid in gross premium written in this insurance class fluctuated from 1.57 in 2005 to in. In the share of claims paid in gross premium written was 21.63, which is 22 less compared to the results in. This insurance line continues its trend of good results in the ratio of claims paid and gross premium written which for the period accounted for Year Railway rolling stock Casco - Gross premium written for the period Year of claims paid in gross premium written () Gross premium written in EUR 000 Index Non-Life Total GWP Railway rolling stock Casco - Claims paid for the period Year Claims paid, gross amounts in EUR 000 Index Non-Life () Total claims

50 Non-life insurance - Railway Rolling Stock Casco Insurance Gross premium written in EUR 000 Claims paid, gross amounts in EUR 000 Graph Railway rolling stock Casco - Gross premium written and claims paid Railway rolling stock Casco - Gross premium written and number of policies issued in Group of classes / risks Railway rolling stock casco insurance Gross premium written in EUR Number of policies issued 885, TOTAL , Railway rolling stock Casco - Number and amounts of claims paid in Group of classes / risks Railway rolling stock casco insurance Number of claims paid Claims paid, gross amount in EUR ,00 191, ,00 TOTAL ,00 191, ,00 49

51 Non-life insurance - Aircraft Hull Insurance 05 Aircraft Hull Insurance The number of insured aircrafts increased by 20 aircrafts or by 20.6 compared to the year before the increase of the number of light aircrafts maintains, the large air operators have not changed the structure of their fleets. After Dubrovnik Airlines ceased operation and after a dramatic drop in premium in by 1 million or by 50.2 in this insurance class against 2011 the total amount of premium written in started a slow growth. The total premium written following the increase in the number of policies issued grew by 18.7 which in its absolute amount accounts for 186 thousand. During claims roseby compared to. The year showed an extremely small number of claims through the last ten years. One claim arising out of technical problems with an aircraft led to a ratio between claims paid and premium written in to a result of The total result in this insurance class during the period 2003 till remained still good and accounted for Aircraft Hull - Gross premium written for the period Aircraft Hull - Claims paid for the period Year Year Gross premium written in EUR 000 Index Non-Life Total GWP 3, , , , , , , , , , Claims paid, gross amounts in EUR 000 Index Non-Life () Number of () Total GWP policies issued Ratio of premium and claims , Aircraft Hull - Gross premium written and number of policies issued in Group of classes / risks Aircraft hull insurance Hull insurance of other air transport crafts TOTAL 05 Gross premium written in EUR Number of policies issued 1,180, ,181,

52 Non-life insurance - Aircraft Hull Insurance ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5, Ratio Graph 21 Aircraft Hull - Gross premium written and claims paid Gross premium written in EUR Claims paid, gross amounts in EUR Graph 22 Aircraft Hull - Premium share Non-Life Group of classes / risks Aircraft hull insurance Hull insurance of other air transport crafts Number of claims paid Claims paid, gross amount in EUR , () Total GWP Aircraft Hull - Number and amounts of claims paid in TOTAL ,

53 Non-life insurance - Ships Hull Insurance Ships Hull Insurance 14 Sea, lake and river hull insurance (expression before 2007) This line of insurance includes different kinds of insurance of various sea, lake and river vessels, ships in construction, insurance of platforms for undersea exploration and insurance of gas platforms. The gross premium of ships hull insurance amounted to 23.2 million which is by 3.1 lower than in.the number of policies issued was which is by 6.8 more than in. The premium drop compared to due to the decrease of premium written in platform insurance amounted to 675 thousand. The total amount of claims paid decreased during by 4.2 million which is 28.5 less claims paid compared to. The ratio of claims paid and premium written in stood at 47.4, and improved against the result in the last year (which stood at 63.62). The total amount of claims paid in the period 2003 till amounted to million, and gross premium written for the same period amounted to 275 million, the ratio of claims paid and premium written through the quoted period stood at 51.7, slightly improved from 52.2 compared to the period 2003 to. The biggest share of premium written by 76.6 derives from insurance of ships, boats and yachts in sea transport (which is slightly higher than in when it accounted for 74.1). The total amount of premium written in was 17.8 million and remained the same as the year before that is by 0.6 higher, while the total number of policies issued was by 1,091 higher which is by 6.81 higher than last year. The increase in the number of policies issued accompanied by a slight increase of premium written indicated a growth of the number of smaller vessels. The amount of claims paid is 10.6 million and represents 96.7 of claims paid in this insurance class, being by 4.07 million or 27.7 lower compared to. The total number of sea vessels in the Croatian fleet, member of Mare Nostrum on 31th December was 142 or by 12 vessels less than on 31th December. The gross tonnage amounted to 1,752,369 and the deadweight tonnage was 2,918,206. During 14 vessels to a gross tonnage of 222,452 and deadweight tonnage of 377,831 left the fleet, while 2 vessels to a gross tonnage of 58,085 and deadweight tonnage of 102,100 entered the fleet. 41 Ships Hull - Gross premium written for the period Ships Hull - Claims paid for the period Ships Hull - Gross premium written and number of policies issued in Group of classes / risks Year Year Hull insurance of ships and yachts in sea transport Hull insurance of ships and boats in river transport Hull insurance of ships and boats in lake transport Hull insurance of ships in construction Hull insurance of platforms Other vessels (hull) insurance TOTAL Gross premium written in EUR , ,698 17, ,647 21, ,606 26, ,611 24, ,518 29, ,771 29, ,140 30, ,218 27, ,356 23, ,020 23, ,112 Claims paid, gross amounts in EUR 000 Index Index Non-Life Non-Life 11, , , , , , , , , , , Gross premium written in EUR () Number Total GWP () Total GWP of policies issued Ratio of premium and claims Number of policies issued 17,800, , , , ,005, ,908, , ,223, ,

54 Non-life insurance - Ships Hull Insurance Ratio , Gross premium written in EUR 000 Hull insurance of ships and yachts in sea transport Hull insurance of ships and boats in river transport Hull insurance of ships and boats in lake transport Hull insurance of ships in construction Hull insurance of platforms Other vessels (hull) insurance TOTAL 06 10, Group of classes / risks 15, Claims paid, gross amounts in EUR , , Number of claims paid 30, Graph 23 Ships Hull - Gross premium written and claims paid 35, Claims paid, gross amount in EUR Ships Hull - Gross premium written and number of policies issued in 1, ,661, , , , , ,016, The crisis in the shipping industry, which has lasted for a larger number of years still continues, negatively affected the Lošinjska plovida, which was established in 1958 with more than 120 ships which were operating in its fleet during its 55 years, which will for some time exist only on the paper. The crisis was too deep and the resulting problems with the servicing obligations principally to banks, mortgage creditors, were not able to overcome, for which reason upon the payment of its obligations to employees, severance payment and payment of all wages to the crews Lošinjska plovidba began to implement a formal winding-up procedure. The decline in premium written of insurance of ships in construction continued and totalled to 1,005,871 which is by 178,302 or 15.1 less compared to the year before. Despite the decline in premiums this class of insurance has kept its share in written premium in its group which was 4.33 (in the year before it was 4.94). During the first half of and before Croatia s official entry into the European Union, the reconstruction of the ownership structure of the shipyard has been finished, which however, has so far not brought to an improvement of Croatian shipyard. The still remaining problem is the guarantee for the construction of ships. Due to their financial situation shipyards are facing serious problems in relation to negotiations for construction of ships, to finding an appropriate institution that will guarantee that the ship will be built in accordance with the provisions of the construction contract. Almost all new buildings are financed by the purchaser and they seek guarantees for their advance payments. The amounts of claims paid in shipbuilding insurance decreased by 137,473 and make 10.3 of claims paid compared to. The ratio between claims paid and premium written in shipbuilding insurance in stood at After 284 years of continuous operation, the Kraljevica shipyard, founded in 1729 by the Emperor Charles VI, ceased operation. For almost three hundred years of existence the shipyard Kraljevica had faced many crises and challenges, but survived thanks to its employees, providing them work and life, and to other residents it ensured economic growth and prosperity, and is with right considered the first shipyard on the eastern coast of the Adriatic Sea. Unfortunately it has failed to overcome the late crisis and by the government decision a bankruptcy proceeding has been initiated. The gross premium written in insurance of platforms stood at 3,908,898 which was by 675,241 less thus by 14.8 lower than last year. The consequence of the differences is that in the platform Zagreb I was upgraded and was paying additional insurance premium. 53

55 Non-life insurance - Goods in Transit 07 Goods in Transit During goods in transit still suffer under the consequences of the crisis of the Croatian economy, there is no development in production, the situation in agricultural production is bad and the export of goods is still weak, on the other hand the import of goods is increasing. The amount of a gross premium written is directly linked to the circulation of import and export goods and circulation of goods in the territory of the Republic of Croatia and depends directly on the parities of buying and selling The total export has been dropping by 3.4 and the import stands slightly over 0.1 compared to the gross premium written of in. The gross premium written to the amount of 7.3 million was by 516,666 or by 7.6 higher than the premium written in. The growth of the premium written resulted from the insurance of the two remarkable exhibitions Masterpieces from the Musée National Picasso and the exhibition of the painting The Supper at Emmaus by Michelangelo Merisi da Caravaggio. Claims paid in amounted to 1.8 million and were by 30.6 lower than in. The ratio between claims paid and premium written in accounted for The total amount of claims paid in the period 2003 to was 39.3 million; the gross premium written for the same period was 96.4 million which equals to a ratio of 40.8 and is slightly better than last year (42.0). 45 Goods in transit - Gross premium written for the period Goods in transit - Claims paid for the period Year Year () Gross premium written in EUR 000 Index Non-Life Total GWP Claims paid, gross amounts in EUR 000 8, , , , , , , , , , , Index Non-Life () Total claims Ratio of premium and claims 3, , , , , , , , , , , Goods in transit - Gross premium written and number of policies issued in Import Export Year Insurance of goods in sea transport Insurance of goods in air transport Insurance of goods in land transport Insurance of goods in storage Other goods in transit insurance According to the indicators expressed in US dollars the import and export of goods was as follows: 6, , , , , , , , , , , , , , , , , , , , , , Group of classes / risks Gross premium written in EUR Number of policies issued 2,016, , , , ,116, , ,047, , TOTAL 07 7,332, ,

56 Non-life insurance - Goods in Transit During in total 111,310 tons of goods were transported which is by 1.5 more than in (109,691 tons of goods). Most, 67,500 tons of goods were transported on roads and represent 60.0 of the total transported goods and by 3.1 more compared to the year. The railways transported 10,869 tons of goods, which represented 9.7 of total goods transported, by 2.0 less than the goods transported during. In maritime transport 24,744 tons of goods were transported and represented 22.2 of total goods transported, which is by 3.5 less than goods transported during. In inland waters traffic 577,000 tons of cargo was transported which represented 0.5 of total goods transported, which is by 8.9 less than goods transported during. In the air traffic 3,000 tons of cargo were transported which represented of total goods transported, which is by 2.0 less than the goods transported during. In other transport (pipelines) 7,617 tons of goods were transported which represented 6.8 of total goods transported, which is by 10.7 more than the goods transported during. The greatest amount of premium written refers to 'other insurance of goods in transit' and amounts to 3,047,050 or 41.5 of total written premiums and is by 292,241 or 10.6 higher compared to the year. Claims paid amounted to 1,215,580 and are by 572,725 higher than claims paid in. The ratio of claims paid and premium written in with 'other insurance of goods in transit' is Premium written in goods in maritime transport make 2,016,578 or 27.5 of total premium written and is by 528,642or 35.5 higher than in. Claims paid amounted to 125,706 being 98,965 lower than claims paid in year. The ratio of claims paid and premium written in in insurance of goods in maritime transport stood at 6.0. Premiums written in goods in air transport is 152,062 or 2.0 of total premium written being by 23,039 or 13.2 lower than in. Claims paid amounted to 20,662 and were by 84,038 lower than claims paid in year. The ratio of claims paid and premium written in in goods in air transport insurance was Premium written in goods in land transport make 2,116,430 or 28.8 of total premium written being by 281,011 or 11.8 lower than in. Claims paid amounted to 529,454 and were by 1,221,986 lower than claims paid in. The ratio between claims paid and premium written in in goods in land transport insurance stood at ,500 3,000 4,500 6,000 7,500 9,000 10,500 12,000 13,500 15, Graph Goods in transit - Gross premium written and claims paid Ratio Gross premium written in EUR 000 Claims paid, gross amounts in EUR Group of classes / risks Insurance of goods in sea transport Insurance of goods in air transport Insurance of goods in land transport Insurance of goods in storage Other goods in transit insurance Number of claims paid Claims paid, gross amount in EUR , , , , ,215, Goods in transit - Number and amounts of claims paid in TOTAL 07 4, ,891,

57 Non-life insurance - Fire Insurance and Insurance against Natural Forces 08 Fire Insurance and Insurance against Natural Forces The fire insurance and insurance against natural forces market recorded a slight premium drop in. However, the reached premium level was slightly higher compared to 2010 and 2011 and throughout a five year period it fluctuated between rise/falls up to 5. Taking into consideration circumstances that ruled through a few years in economy the quoted premium fluctuation in this insurance class can be considered acceptable. It is remarkable that premium in fire insurance beyond industry and craft, i.e. insurance against civil risks in compared to the year before rose as well as the number of policies issued. Other fire insurance and insurance against natural forces recorded a growth in premium written and the number of policies issued, i.e. risks against. After the two years trend of the growth of damage caused by fire in the gross claims paid were by 8.4 less compared to the year before. However, they are still holding a very high level and observed in a period of ten years they recorded the second highest value in terms of total amounts of claims paid relating to fire insurance. This insurance class is subject to the occurrence of great loss caused by fire as well as of mass loss as a consequence of climatic disasters. The storm Teodor to which Rijeka and partially the City of Zagreb were exposed in November caused mass loss resulting in numerous claims and high amounts of indemnity Fire and natural forces - Gross premium written for the period Fire and natural forces - Claims paid for the period Year Year () Gross premium written in EUR 000 Index Non-Life Total GWP 52, , , , , , , , , , , Claims paid, gross amounts in EUR 000 Index Non-Life () Total claims 18, , , , , , , , , , ,

58 Non-life insurance - Fire Insurance and Insurance against Natural Forces 0 8,000 16,000 24,000 32,000 40,000 48,000 56,000 64,000 72,000 80, Gross premium written in EUR 000 Claims paid, gross amounts in EUR 000 Graph 25 Fire and natural forces - Gross premium written and claims paid Graph 26 Fire and natural forces - Premium share Non-Life () Total GWP Graph 27 Fire and natural forces - s of gross claims paid Non-Life () Total claims 57

59 Non-life insurance - Fire Insurance and Insurance against Natural Forces 51 Fire and natural forces - Gross premium written and number of policies issued in Group of classes / risks Fire insurance and insurance against natural forces outside industry and crafts Fire insurance and insurance against natural forces in industry and crafts Other insurance against fire and natural forces TOTAL Fire and natural forces - Number and amounts of claims paid in Group of classes / risks Fire insurance and insurance against natural forces outside industry and crafts Fire insurance and insurance against natural forces in industry and crafts Other insurance against fire and natural forces TOTAL 08 Gross premium written in compared to the year before increased in fire insurance and insurance against natural forces beyond industry and craft. A significant drop of insurance premiums beyond industry and craft was recorded by 7.2 while the number of policies issued fell by 2.2. At the same time other fire insurance and insurance against natural forces recorded a premium growth by 7.1 accompanied by a growth of 1.7 in the number of policies issued. It is worth mentioning that during the past 5 years the number of insurance in industry and craft has been falling from year to year, and in compared to 2008 the number of insurance fell by 20. This decrease in the number of policies issued was mainly influenced by the economic situation in the Republic of Croatia that is due to a number of facility shutdowns by which the number of insurance market subjects has been continuously reduced. 58

60 Non-life insurance - Fire Insurance and Insurance against Natural Forces Gross premium written in EUR Number of policies issued 46,003, , ,763, , ,201, , ,967, , Number of claims paid Claims paid, gross amount in EUR 25, ,965, , ,975, , ,380, , ,322, The biggest share of fire insurance and insurance against natural forces has been recorded outside industry and craft as presented in the table. In this segment apart from insurance contracted by companies outside industry and craft (insureds from tourist branches, storage and distribution of goods, trade and the like) a significant result has been achieved with fire insurance premiums linked to insurance of housing buildings, this segment showing a slight premium growth in. The gross amount of claims paid in is significantly lower than in other fire insurance, which compared to the year before recorded a fall of 76, on the other hand the number of claims against the year before rose by 29. Claims paid beyond industry remained at the same level as last year, while claims in industry recorded a growth by 8. 59

61 Non-life insurance - Other Damage to Property 09 Other Damage to Property This class of insurance comprises heterogeneous risks, i.e. it is featured by a large number of various insurance classes. In a six year period of a worsened economic situation from 2008 to the premium written has recorded a constant drop after a very good five year period of continuous growth (since 2003 to 2008) which was the result of an economic growth. Thus the gross premium written in compared to the best insurance year (2008) fell by 15. The six year period of premium decrease is a consequence of large business deals connected tobuildings in construction, decrease of investment programs and a smaller number of industrial facilities. The biggest share in premium written within this insurance class falls to machinery breakdown by due to high equipment values and the fact that within industry the majority of machines is being insured, and new machines which are financed through loans or leasing programs have to be insured because the creditors request it. Another significant share among these risks falls to agricultural insurance. These comprise livestock insurance (12.16), crop insurance with a share of which are mainly contracted with big economic subjects that produce food as well as with small family farms in areas where subvention for farm development was granted. Within this group household insurance holds a share of 10 and shows a continuous growth with respect to premium written and the number of policies issued. In household premium grew by nearly 4, and for insurers it is most important because of a better dispersion of insurance risks for which reason it can be expected that household insurance will grow in the forthcoming period. This insurance product shows a best ratio between premium written and claims paid. Since the years 2003, 2005, 2007, 2008 and 2009 were exposed to bad weather conditions (storms and hail) which caused above-average claims paid. The year 2008 recorded vast damage in crop and plantation insurance which resulted in aincrease in claims paid by more than 20, so that the year 2008 recorded the highest amount of claims paid in other property insurance in a ten year period of observation. From 2008 to claims paid in other damage to property recorded a slight drop mostly because there was no vaster catastrophic damage to crops and plantation, so that the gross amount of claims paid in class 09 Other damage to property recorded in the lowest level within the last six years. 53 Other damage to property - Gross premium written for the period Other damage to property - Claims paid for the period Year Year () Gross premium written in EUR 000 Index Non-Life Total GWP 73, , , , , , , , , , , Claims paid, gross amounts in EUR 000 Index Non-Life () Total claims 45, , , , , , , , , , ,

62 Non-life insurance - Other Damage to Property 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90, , , Graph 28 Other damage to property - Gross premium written and claims paid Gross premium written in EUR 000 Claims paid, gross amounts in EUR 000 The gross premium written share of other property insurance classes in non-life insurance during the past eleven years is stable and floats between10 and 12, while in the gross premium written market, in the same period of observation it dropped from 9.2 to 7.3 in which is the lowest share in non-life insurance premium through a longer period. The share of claims of these classes in the total claims paid in non-life insurance varies between 12 and 15. However, the share in total claims in was the lowest in the framework of the earlier eleven years and for the first time came beneath 10. Machinery breakdown insurance makes the highest individual share in the number and amounts of claims paid, about 30. It results from the structure of machines and from outworn industrial machines which are still used in industrial facilities in the Republic of Croatia, which are still usable but liable to frequent breakdowns, and from the fact that policyholders reluctantly contract machinery breakdown insurance with franchise by which they do not participate in any part of damage caused which is usual in developed insurance market. In terms of share in total claims in other damage to property, machinery breakdown is followed, according to the amounts of claims paid, by insurance of animals with a significant share of around 20, then followed by insurance of crops and plantation (16). Insurance of crops and plantation is directly subject to the climatic conditions and in higher amounts of claims paid were recorded by

63 Non-life insurance - Other Damage to Property 55 Other damage to property - Gross premium written and number of policies issued in Group of classes / risks Machinery breakdown insurance Burglary and robbery insurance Glass insurance (insurance of glass from breakage) Householders insurance Contract works insurance (insurance of buildings in construction) Erection insurance Film industry insurance Insurance of goods in mining pits Computer insurance Insurance of stocks in refrigerated trailer trucks (refrigerated trailer truck stock declaration coverage) Crop and plantation insurance Live stock insurance Other damage to property TOTAL Other damage to property - Number and amounts of claims paid in Group of classes / risks Machinery breakdown insurance Burglary and robbery insurance Glass insurance (insurance of glass from breakage) Householders insurance Contract works insurance (insurance of buildings in construction) Erection insurance Film industry insurance Insurance of goods in mining pits Computer insurance Insurance of stocks in refrigerated trailer trucks (refrigerated trailer truck stock declaration coverage) Crop and plantation insurance Live stock insurance Other damage to property TOTAL 09 62

64 Non-life insurance - Other Damage to Property Gross premium written in EUR Number of policies issued 21,768, , ,498, , ,326, , ,525, , ,301, , ,880, , , , ,369, , ,752, , ,272, , ,400, , Number of claims paid Claims paid, gross amount in EUR 27, ,909, , ,459, , ,130, , ,788, ,873, , , , , , ,198, , ,769, , ,943, , ,352,

65 Non-life insurance - Motor Third Party Liability Insurance 10 Motor Third Party Liability Insurance A detailed analysis on Motor vehicle owner i.e.user compulsory 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. (Accessible under The gross premium written in motor TPL insurance amounted to million in and compared to was by 1.3 higher. The gross premium written share of this insurance class in non-life gross premium increased by 1.90 in compared to, while the share in total gross premium written grew by The amount of claims paid in this insurance class in was by 2.4 lower against while the number of claims paid was by 2.83 lower. The premium in compulsory motor liability insurance is the largest segment in total gross premiums written in Motor TPL insurance (99.05) and because motor liability insurance is mainly compulsory its total share is still high to in non-life insurance, i.e. to within the total gross premium written. The total gross premium written in compulsory motor liability insurance in generated million which makes a growth of Motor TPL - Gross premium written for the period Year () Gross premium written in EUR 000 Index Non-Life Total GWP 258, , , , , , , , , , , In the number of policies issued in Motor TPL insurance was 1,939,393 (1,928,194 in ) which compared to makes an increase of 0.58 or 11,199 policies more compared to. The average gross premium written increased by 0.60 in and accounted for (the average premium in accounted for ). The number of claims paid in was lower by 3.19; the amount of claims paid was lower by Motor TPL - Claims paid for the period Year Claims paid, gross amounts in EUR 000 Index Non-Life () Total claims 169, , , , , , , , , , ,

66 Non-life insurance - Motor Third Party Liability Insurance 0 40,000 80, , , , , , , , , Gross premium written in EUR 000 Claims paid, gross amounts in EUR 000 Graph 29 Motor TPL - Gross premium written and claims paid Graph Motor TPL - Premium share Non-Life () Total GWP Graph 31 Motor TPL - s of gross claims paid Non-Life () Total claims 65

67 Non-life insurance - Motor Third Party Liability Insurance 59 Motor TPL - Gross premium written and number of policies issued in Group of classes / risks Motor vehicle owner/user compulsory third party liability insurance Motor vehicle owner/user voluntary liability insurance for damages to third party Driver liability insurance for goods transported in road transport Other types of motor vehicle liability insurance TOTAL Motor TPL - Number and amounts of claims paid in Group of classes / risks Motor vehicle owner/user compulsory third party liability insurance Motor vehicle owner/user voluntary liability insurance for damages to third party Driver liability insurance for goods transported in road transport Other types of motor vehicle liability insurance TOTAL 10 66

68 Non-life insurance - Motor Third Party Liability Insurance Gross premium written in EUR Number of policies issued 389,503, ,939, ,008, , ,502, , , , ,230, ,026, Number of claims paid Claims paid, gross amount in EUR 77, ,738, , , ,177, , , ,294,

69 Non-life insurance - Aircraft Liability Insurance 11 Aircraft Liability Insurance The aircraft liability insurance premium fell by 3.6 compared to the premium in, claims paid in that period amounted to 8,714 which makes 5.3 of claims in. The compulsory aircraft liability insurance retained very good results in the period from 2003 to, the total of claims paid accounted to 482,732 and the gross premium written accounted to 4,504,097 which makes a ratio of Premium written in compulsory liability insurance amounted to 209,007 and was by 11,276 or 5.6 higher than the premium written in. Claims paid amount to 8,679 and represent 5.2 of the loss rate in. The ratio of claims paid and premium written in amounted to 4.2 Premium written in voluntary liability insurance amounted to 560,283 and was by 40,191 or 6.7 lower than premium written in. There were no claims paid during. 61 Aircraft liability - Gross premium written for the period Aircraft liability - Claims paid for the period Year Year () Gross premium written in EUR 000 Index Non-Life Total GWP Claims paid, gross amounts in EUR Index Non-Life () Total GWP Ratio of premium and claims , , Aircraft liability - Gross premium written and number of policies issued in Group of classes / risks Aircraft owner/user compulsory liability insurance for damages to third parties Aircraft owner/user compulsory liability insurance for all types of liabilities (including liability of carrier for goods transported in air transport) Gross premium written in EUR Number of policies issued 209, , TOTAL ,

70 Non-life insurance - Aircraft Liability Insurance Graph 32 Aircraft liability - Gross premium written and claims paid Ratio Gross premium written in EUR 000 Claims paid, gross amounts in EUR Group of classes / risks Aircraft owner/user compulsory liability insurance for damages to third parties Aircraft owner/user compulsory liability insurance for all types of liabilities (including liability of carrier for goods transported in air transport) Number of claims paid Claims paid, gross amount in EUR , Aircraft liability - Number and amounts of claims paid in TOTAL ,

71 Non-life insurance - Marine Liability Insurance 12 Marine Liability Insurance The gross premium in this class of insurance rose during the year by 5.4 and compared to the year before generated 4,996,907 thus being higher by 257,990. The major part of the premium in this class of insurance 62.2 falls to marine liability insurance (P&I) and 32.0 falls to motor yacht owner compulsory liability insurance. The number of marine liability insurance policies shows an increase of6.8 compared to. The largest number refers to compulsory sea ship/yacht owner liability insurance (26,357 in compared to 28,189 in or a growth by 6.7). The number of claims paid in was 92 by 4 claims i.e. 4.2 lower compared to, while the total amount of claims paid was lower by 109,742 or by 13.2 compared to. The total amount of claims paid in the period 2003 to amounted to 10.6 million; the gross premium written for the same period accounted for 50.4 million which equals to a ratio of Premium written in sea ship owner/user liability insurance in amounted to 3,107,515 and makes an increase of 134,696 or 4.5 compared to. The selling of a few older ships and the termination of Lošinjska plovidba has left its mark on total premium written. The total amount of claims paid was 527,809 and represents a fall of 122,592 or The ratio of claims paid and premium written in was Premium writtenin compulsory sea ship owner/user liability insurance in amounted to 1,600,971 and showed an increase of 100,129 or 6.6 compared to. The total amount of claims paid was 141,967 showing an increase of 21,616 or The ratio of claims paid and the premium written in was Marine liability - Gross premium written for the period Marine liability - Claims paid for the period The number of ships covered by P&I insurance and the gross tonnage in the period of observation was as follows: Year Year Year Number of ships Gross tonnage 151 1,418, ,424, ,490, ,626, ,744, ,882, ,874, ,936, ,848, ,891, ,703,671 Gross () premium written in EUR 000 Index Non-Life Total GWP Number of policies issued 3, ,242 3, ,636 3, ,320 4, ,423 5, ,196 5, ,105 5, ,522 5, ,306 4, ,241 4, ,746 4, ,074 Claims paid, gross amounts in EUR 000 Index Non-Life () Total GWP Ratio of premium and claims 1, , ,

72 Non-life insurance - Marine Liability Insurance 0 1,000 2,000 3,000 4,000 5,000 6, Graph Marine liability - Gross premium written and claims paid Ratio Gross premium written in EUR 000 Claims paid, gross amounts in EUR Group of classes / risks Sea ship owner / user liability insurance (including liability of carrier for goods transported Lake and river vessel owner / user liability insurance (including liability of carrier for goods transported) Motor yacht owner / user compulsory liability insurance for damages to third parties Other types of liability insurance for ship operators TOTAL Gross premium written in EUR Number of policies issued 3,107, , , ,600, , , , ,996, , Marine liability - Gross premium written and number of policies issued in Marine liability - Number and amounts of claims paid in Group of classes / risks Number of claims paid Claims paid, gross amount in EUR Sea ship owner / user liability insurance (including liability of carrier for goods transported Lake and river vessel owner / user liability insurance (including liability of carrier for goods transported) Motor yacht owner / user compulsory liability insurance for damages to third parties Other types of liability insurance for ship operators , , , , TOTAL ,

73 Non-life insurance - General Liability 13 General Liability This insurance line refers to the groups of classes under professional indemnity for freightforwarders, marine-owner or user liability insurance, ship repairer liability insurance which total premium was 2,237,464 and accounted in the whole liability insurance line for 5.4. The total premium was about last year s level and was by 19,992 or by 0.8 higher compared to. In total claimsthese groups of classes accounted for 1,029,834 or 5.4 of total claims in this group of classes. Total claimswere by 437,043 higher compared to representing an increase of The ratio of premium written and claims paid in was Premium written in freight forwarders liability insurance in amounted to 271,628 and was by 11,758 or 4.5 higher than in. Claims paid amounted to 144,342 and were by 26,260 higher than claims paid in. The ratio of claims paid and premium written in in freight forwarders liability insurance was Premium written in marine-owner or user liability insurance in amounted to 1,030,873 and was by 86,038 or 9.1 higher than in. Claims paid amounted to 203,036 and were by 149,565 higher than claims paid in. The ratio of claims paid and premium written in in marine-owner or user liability insurance was Premium written in ship repairer liability insurance in amounted to 934,963 and was by 77,886 or 7.7 lower than in. Claims paid amounted to 682,456 and were by 560,348 lower than claims paid in. The ratio of claims paid and premium written in ship repairer liability insurance was General liability - Gross premium written for the period General liability - Claims paid for the period Year Year () Gross premium written in EUR 000 Index Non-Life Total GWP 20, , , , , , , , , , , Claims paid, gross amounts in EUR 000 Index Non-Life () Total claims 9, , , , , , , , , , ,

74 Non-life insurance - General Liability 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45, Gross premium written in EUR 000 Claims paid, gross amounts in EUR 000 Graph General liability - Gross premium written and claims paid Graph General liability - Premium share Non-Life () Total GWP Graph 36 General liability - s of gross claims paid () Non-Life 2.00 () Total claims

75 Non-life insurance - General Liability 71 General liability - Gross premium written and number of policies issued in Group of classes / risks Insurance of contractual liability for building contractors Insurance of contractual liability for assembling contractors Film makers liability insurance Producer liability insurance for products Rail transport liability insurance Insurance of guarantee for producers, sellers and suppliers General liability insurance Liability insurance for project engineering companies and other comp. for damages incurred due to incorrect tech documentation Liability insurance for project engineering companies and other companies Professional indemnity for lawyers Professional indemnity for public notaries Professional indemnity for auditing companies Professional indemnity for freight-forwarders Marine-owner or user liability insurance Ship repairer liability insurance Liability insurance for security agents and detectives Real estate management liability insurance Liability insurance for doctors, dentists and pharmacists Bankruptcy trustee liability insurance Other types of liability insurance TOTAL General liability - Number and amounts of claims paid in Group of classes / risks Insurance of contractual liability for building contractors Insurance of contractual liability for assembling contractors Film makers liability insurance Producer liability insurance for products Rail transport liability insurance Insurance of guarantee for producers, sellers and suppliers General liability insurance Liability insurance for project engineering companies and other comp. for damages incurred due to incorrect tech documentation Liability insurance for project engineering companies and other companies Professional indemnity for lawyers Professional indemnity for public notaries Professional indemnity for auditing companies Professional indemnity for freight-forwarders Marine-owner or user liability insurance Ship repairer liability insurance Liability insurance for security agents and detectives Real estate management liability insurance Liability insurance for doctors, dentists and pharmacists Bankruptcy trustee liability insurance Other types of liability insurance TOTAL 13 74

76 Non-life insurance - General Liability Gross premium written in EUR Number of policies issued 138, , , ,206, ,453, , , , , , , , , ,030, , , , ,279, , , ,220, , ,919, , Number of claims paid Claims paid gross amount in EUR , , , ,194, , ,984, , , , , , , , , , , , ,556, , ,880,

77 Non-life insurance - Credit Insurance 14 Credit Insurance The money stock in loans compared to increased by 0.9. Loans granted to natural persons in were lower by 1.7 compared to, and loans granted to legal persons fell by 0.1. The total gross premium written was by 186,250 lower in or by 1.0 compared to. This fall resulted from the drop of export and housing loans. The total of claims paid amounted to 5,809,141 or were by 31.4 lower in relation to ( 9,127,962 in ), the number of claims decreased as well and accounted for or 11.5 less compared to (3913 in ). The ratio between claims paid and premium written in was This result was affected by a large amount of reimbursed claims. The amount of claims paid represents the amount of actually paid claims reduced by the actual reimbursed demands. The ratio between claims paid and premium written in the period was Premium written in export claims insurance in amounted to 868,661 and was by 437,061 or 33.5 lower than in. Claims paid amounted to 359,459 and were by 259,783 higher than claims paid in. The ratio of claims paid and premium written in export claims insurance in was Credit - Gross premium written for the period Credit - Claims paid for the period Premium written in other claims insurance in amounted to 17,682,794 and was by 885,998 or 5.2 higher than in. Claims paid amounted to 3,822,379 and were by 4,280,143 lower than claims paid in. The ratio of claims paid and premium written in in other claims insurance was Premium written in housing credits in amounted to 719,512 and was by 635,186 or 46.9 lower than in. Claims paid amounted to 1,627,303 and were by 701,538 higher than claims paid in. The ratio of claims paid and premium written in in housing credits was Year Year () Gross premium written in EUR 000 Index Non-Life Total GWP Claims paid gross amounts in EUR 000 8, , , , , , , , , , , Index Non-Life () Total claims Ratio of premium and claims 7, , , , , , , , , , , Credit - Gross premium written and number of policies issued In Credit - Number and amounts of claims paid in Group of classes / risks Export claims insurance Other claims insurance Housing credits Gross premium written in EUR Number of policies issued 868, ,682, , , Number of claims paid Claims paid gross amount in EUR , , ,822, ,627, TOTAL 14 19,270, , , ,809,

78 Non-life insurance - Credit Insurance 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20, Graph Credit - Gross premium written and claims paid Ratio Gross premium written in EUR Claims paid gross amounts in EUR Graph 38 Credit - Premium share - and share of claims paid, gross amounts Non-Life () Total GWP () Non-Life () Total claims Graph 38a Credit - of claims paid, gross amounts () 77

79 Non-life insurance - Suretyship Insurance 15 Suretyship Insurance The premium written in this insurance class was lower in by 238,367 or by 22.5 compared to. Suretyship insurance fell by 73,358 or by 30.5 and guarantee insurance was also lower by 165,008 or by 20.1 compared to. The number of issued suretyship insurance policies decreased by 5 and the number of issued guarantee insurance policies issued rose by 71. The total amount of claims paid in accounted for 275,677 and was by 66,517or by 19.5 lower than in. The ratio between claims paid and premium written in was The ratio between claims paid and premium written during the period accounted for Suretyship - Gross premium written and number of policies issued in 77 Suretyship - Gross premium written for the period Suretyship - Claims paid for the period Year Year () Gross premium written in EUR 000 Index Non-Life Total GWP , , () Claims paid, gross amounts in EUR 000 Index Non-Life Total claims Ratio of premium and claims Group of classes / risks Surety insurance Guarantee insurance Gross premium written in EUR Number of policies issued 167, , , TOTAL ,

80 Non-life insurance - Suretyship Insurance Graph 39 Suretyship - Gross premium written and claims paid , , Ratio Gross premium written in EUR 000 Claims paid gross amounts in EUR Suretyship -Number and amounts of claims paid in Group of classes / risks Surety insurance Guarantee insurance Number of claims paid Claims paid gross amount in EUR , ,488, TOTAL ,087,

81 Non-life insurance - Miscellaneous Financial Losses 16 Miscellaneous Financial Losses The gross premium written in this insurance class recorded in against a growth rate of 4.4. Although this class of insurance is broadly represented in the international market, its share in the Croatian insurance market is still very small. This insurance class is predominantly covered by All Risk policies (loss from business stoppage due to fire, machinery breakdown and others). The gross premium written share of this insurance class in non-life gross premium written in was 1.43 while its share in total gross premium written stood at In we recorded a giant leap in the amount of claims paid compared to, thus continuing the growth trend from the years before. The amount of claims paid was four times higher in, higher than the amount in the previous period of observation and amounted to 9.46 million, while in the gross amount of claims paid stood at 2.18 million. 81 Financial loss - Gross premium written for the period Financial loss - Claims paid for the period Year Year () Gross premium written in EUR 000 Index Non-Life Total GWP 5, , , , , , , , , , , Claims paid gross amounts in EUR 000 Index Non-Life () Total claims 1, , , , , , , , , , ,

82 Non-life insurance - Miscellaneous Financial Losses 0 1,500 3,000 4,500 6,000 7,500 9,000 10,500 12,000 13,500 15, Gross premium written in EUR 000 Claims paid gross amounts in EUR 000 Graph 40 Financial loss - Gross premium written and claims paid Graph 41 Financial loss - Premium share Non-Life () Total GWP Graph 42 Financial loss - s of gross claims paid () Non-Life () Total claims

83 Non-life insurance - Miscellaneous Financial Losses 83 Financial loss - Gross premium written and number of policies issued in Group of classes / risks Insurance of financial losses from work stoppage due to fire and other dangers Insurance of financial losses from work stoppage due to machinery breakages Weather insurance Insurance of damages from purchases of false foreign currencies Insurance of perils of passage cancellation Other types of insurance of financial losses TOTAL Financial loss - Number and amounts of claims paid in Group of classes / risks Insurance of financial losses from work stoppage due to fire and other dangers Insurance of financial losses from work stoppage due to machinery breakages Weather insurance Insurance of damages from purchases of false foreign currencies Insurance of perils of passage cancellation Other types of insurance of financial losses TOTAL 16 82

84 Non-life insurance - Miscellaneous Financial Losses Gross premium written in EUR Number of policies issued 4,365, , , , , , , ,085, , ,359, , Number of claims paid Claims paid gross amount in EUR ,385, , , , , ,403, , ,460,

85 Non-life insurance - Legal Expenses 17 Legal Expenses Legal expenses insurance covers attorney's fees and other court costs. This insurance class is poorly represented in the Croatian insurance market. The gross premium written in this insurance class in against fell by 3.6. Legal expenses insurance recorded the same share in non-life as in the previous year by 0.04 as well as the share in total gross premium written to Legal expenses - Gross premium written for the period Year () Gross premium written in EUR 000 Index Non-Life Total GWP In, compared to the amount of claims paid was by 27.6 lower. This insurance class follows a trend of remarkably good results in the ratio between claims paid and premium written in the period 2003 to and stood at Legal expenses - Claims paid for the period Year Claims paid gross amounts in EUR 000 Index Non-Life () Total claims Legal expenses - Gross premium written and number of policies issued in Group of classes / risks Legal costs and expenses insurance Gross premium written in EUR Number of policies issued 362, , TOTAL , ,

86 Non-life insurance - Legal Expenses Gross premium written in EUR 000 Claims paid gross amounts in EUR 000 Graph Legal expenses Gross premium written and claims paid Graph Legal expenses Premium share Non-Life () Total GWP 88 Legal expenses - Number and amounts of claims paid in Group of classes / risks Legal costs and expenses insurance Number of claims paid Claims paid gross amount in EUR , TOTAL ,

87 Non-life insurance - Travel Insurance 18 Travel Insurance Tourist Assistance (term before 2007) 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. In 2007 it recorded a considerate leap of the premium written share in the total insurance portfolio which partly resulted from stricter regulations in tourist business, while in 2008 the gross premium written rose by 10.4, in 2009 by 6.4, in 2010 by a more significant growth by 19.2, in 2011 it stood at 3.5 while in the growth stood at In it recorded a drop by 9.5 compared to the year before. Within travel insurance the most represented group of this insurance class is travel health insurance with a share in premium written and a share in claims paid. 89 Travel - Gross premium written for the period Travel - Claims paid for the period Year Year () Gross premium written in EUR 000 Index Non-Life Total GWP , , , , , , , , Claims paid gross amounts in EUR 000 Index Non-Life () Total claims , , , , , , Travel - Gross premium written and number of policies issued in Group of classes / risks Gross premium written in EUR Number of policies issued Tourist insurance Travel health insurance Travel insurance and assistance while away from domicile or place of residence Insurance of other tourist risks 150, , ,199, , ,662, , , , TOTAL 18 6,604, ,

88 Non-life insurance - Travel Insurance 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8, Gross premium written in EUR 000 Claims paid gross amounts in EUR 000 Graph 45 Travel - Gross premium written and claims paid Graph 46 Travel - Premium share Group of classes / risks Tourist insurance Travel health insurance Travel insurance and assistance while away from domicile or place of residence Insurance of other tourist risks Number of claims paid Claims paid gross amount in EUR Non-Life () Total GWP , , ,306, , , , Travel - Number and amounts of claims paid in TOTAL 18 79, ,215,

89 88

90 LIFE INSURANCE 04 89

91 04 16 Life Insurance (19-25) Life Insurance 16 Data for the period source Croatian Financial Services Supervisory Agency; Data for the period delivered by insurance companies through the web application HUO_Statistika In i.e. the second year in a row the gross premium written showed a growth by 3.1 compared to. Besides, the life insurance premium share in total insurance market portfolio has been growing - in it stood at against in. 93 The main growth factor in total premium written is a new premium, which for the second year in a row recorded a considerate growth. At the end of the gross premium written of new insurance amounted to 96.5 million, which makes a growth of significant 22.9 compared to last year. The growth of new premium was recorded with regular payment annuity (to the amount of 966,521 or by 5 compared to the year before) and for singlepayment annuity (to the amount of 17million or 28.7 compared to ). With a view to insurance groups and classes the most important is the rise of new premium was recorded for endowment assurance by million or 36.4 of which the greatest part, even million was linked to single-payment endowment assurance Claims paid in life insurance recorded an upsurge in and amounted to 206 million or by 10.1 higher compared to. Thus the premium for renewal of insurance in was lower than in by 7.77million or by 3.2. The ratio between claims paid and gross premium written recorded a growth as well and in it amounted to 61.6, while a year before it was The number of claims paid grew also, however, this growth has been slowed down compared to last year. In the number of claims paid grew by 4.6 while in compared to 2011 it grew by Thus the growth of the number of claims paid has been slowed down and the average claim paid rose. Life - Gross premium written for the period Insurers undertake measures to stabilise the total portfolio of life insurance by means of regular activities regarding the collecting of premiums, the decrease of the number of paid out surrender value offering a possibility of alteration (change of the amount of premium or insurance duration) or by raising loans with insurance companies at a competitive rate of interest. Life density (penetration) (premium share in GDP) in accounted for 0.74, while the density of insurance (average life insurance premium per capita) amounted to 79 which is considerably lower than in the EU member countries. However, since for the first time after 2008 positive movements and growth of premium rate have been recorded in there is more expectation that life insurance will grow and develop in the forthcoming years, especially after the recovery of macroeconomic indicators. Life -Claims paid for the period Year Year Gross premium written in EUR 000 Index 178, , , , , , , , , , , Claims paid, gross amounts in EUR 000 Index in Total GWP () in Total claims () 22, , , , , , , , , , , ,

92 Life Insurance 0 25,000 50,000 75, , , , , , , , , , , , Gross premium written in EUR 000 Claims paid gross amounts in EUR 000 Graph Life - Premiums and gross claims paid (in EUR 000) Claim paid index Premium growth index Graph 48 Life Premium growth and gross claims paid - index Annuity Supplementary insurance linked with life assurance policies Graph 49 Life Premium structure in 0.30 Marriage and birth assurance 5.10 Unit linked Life 91

93 Life Insurance 95 Life - Gross premium written and number of policies issued in Group of classes / risks Endowment assurance Term assurance Pure endowment assurance Whole life assurance Critical illness assurance Other life assurance Gross premium written in EUR Number of policies issued 251,451, , ,995, , ,578, , ,137, , ,900, , ,604, , Life 294,667, , Life annuity Life annuity with limited duration Other annuities 702, , , , Annuity 1,464, , Supplementary accident insurance (as a supplement to life insurance) Supplementary health insurance (as a supplement to life insurance) Other supplementary insurance of persons (as a supplement to life insurance) 18,621, , , , ,167, , Supplementary insurance linked with Life assurance policies 20,933, , Marriage and birth assurance 1,003, , Marriage and birth assurance 1,003, , Endowment assurance with units of investment funds 9,170, , Term assurance with units of investment funds Pure endowment assurance with units of investment funds Life assurance with units of investment funds with guarantee payment 6,593, , Other life assurance with units of investment funds 1,334, , Unit linked 17,099, , Tontine TONTINE Assurance with paid-up sum assured Assurance with paid-up sum assured

94 Life Insurance Number of claims paid Claims paid gross amount in EUR 47, ,404, , ,175, , ,442, , ,639, , ,688, ,078, Life - Number and amounts of claims paid in Endowment assurance Term assurance Pure endowment assurance Whole life assurance Critical illness assurance Other life assurance , ,429, Life , , , Life annuity Life annuity with limited duration Other annuities ,187, Annuity , ,347, , , Supplementary accident insurance (as a supplement to life insurance) Supplementary health insurance (as a supplement to life insurance) Other supplementary insurance of persons (as a supplement to life insurance) , ,696, Supplementary insurance linked with Life assurance policies , Marriage and birth assurance , Marriage and birth assurance , ,164, Endowment assurance with units of investment funds Term assurance with units of investment funds Pure endowment assurance with units of investment funds ,087, Life assurance with units of investment funds with guarantee payment , ,193, Other life assurance with units of investment funds , ,445, Unit linked Tontine TONTINE Assurance with paid-up sum assured Assurance with paid-up sum assured 25 93

95 Life Insurance 97 Life Number of insured persons in Number of insured persons through the year with residence Number of insured persons (active policies) on 31st Dec, with residence Group of classes / risks Endowment assurance Term assurance Pure endowment assurance Whole life assurance Critical illness assurance Other life assurance at home abroad at home abroad 256,045 1, , , , , , , , , , , Life 472,981 1, , Life annuity Life annuity with limited duration Other annuities , Annuity 1, , Supplementary accident insurance (as a supplement to life insurance) Supplementary health insurance (as a supplement to life insurance) Other supplementary insurance of persons (as a supplement to life insurance) 365,718 1, , , , , , Supplementary insurance linked with Life assurance policies 474,431 1, , Marriage and birth assurance , Marriage and birth assurance , Endowment assurance with units of investment funds 20, , Term assurance with units of investment funds Pure endowment assurance with units of investment funds Life assurance with units of investment funds with guarantee payment 4, , Other life assurance with units of investment funds 13, , Unit linked 38, , Tontine TONTINE Assurance with paid-up sum assured Assurance with paid-up sum assured TOTAL ,409 1,512,944 13,977 94

96 Life Insurance 17 Definition 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 Number of new insurance with a regular premium Number of new insurance with a single premium Gross premium written of new insurance with a regular premium in EUR Gross premium written of new insurance with a single premium in EUR 49,468 16,119 15,159,050 58,737,695 7,903 21, ,888 7,859,479 5, ,369,781 1,529,254 4, ,369 90,904 4, ,200 21, ,090 9, Number of insurance policies issued and 17 gross premimum written of new life insurance in Endowment assurance Term assurance Pure endowment assurance Whole life assurance Critical illness assurance Other life assurance ,137 38,128 18,200,378 68,248,929 Life , , , , ,469 Life annuity Life annuity with limited duration Other annuities , ,204 Annuity ,007 4,276 1,030, ,897 1, , , ,116 5,379 Supplementary accident insurance (as a supplement to life insurance) Supplementary health insurance (as a supplement to life insurance) Other supplementary insurance of persons (as a supplement to life insurance) ,520 4,300 1,365, ,276 Supplementary insurance linked with Life assurance policies ,965 3,009 Marriage and birth assurance ,965 3,009 Marriage and birth assurance , ,283 Endowment assurance with units of investment funds Term assurance with units of investment funds Pure endowment assurance with units of investment funds ,364,014 Life assurance with units of investment funds with guarantee payment , , ,948 Other life assurance with units of investment funds , ,023 6,857,245 Unit linked Tontine TONTINE Assurance with paid-up sum assured Assurance with paid-up sum assured ,956 43,440 20,239,909,98 76,294,347 TOTAL 95

97 96

98 INSURANCE AND REINSURANCE COMPANIES 05 Note: The total Non-Life Gross Written Premium includes coinsurance premiums amounting to 123,700 The total Non-Life Gross Written Premium includes coinsurance premiums amounting to 633,090 Data for Wiener osiguranje Vienna Insurance Group d.d. comprises data relating to Helios Vienna Insurance Group d.d. and Kvarner Vienna Insurance Group d.d. 97

99 05 Insurance Insurance and Reinsurance Companies and Reinsurance Companies 1 2 This part of the Reportprovides basic information on insurance and reinsurance companies active in the Republic of Croatia 3 - information relating to the establishment of the companies, their management, ownership structure, transacted insurance business, addresses of branch offices, phone and fax numbers, as well as basic data on their business activities in. The Report also provides information on mergers, take-overs, changes of corporate names etc., as well as information on the Croatian Nuclear Pool. In, the following insurance and reinsurance companies operated in the Croatian market*: 1 Data supplied by the insurance companies and collected through the statistics application of the HUO_Statistika. 2 Information is sourced from the insurance and reinsurance companies. 3 Information on the Management of the Companies as per 1 May * 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 Health Insurance Company Ltd. to carry out all insurance business with effect from 6 April The 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 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 With effect from1 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 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 20October By Decisions No Tt-10/ and Tt-10/ 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. The takeover by UNIQA osiguranje d.d. is expected to be completed by September Cardif osiguranje d.d. commenced underwriting business on 10 September On 2 November 2011 the corporate name was changed to BNP Paribas Cardif osiguranje d.d. 8 On 4 December 2008 the Company was granted supervisory authorisation to carry on insurance business in the classes: Accident, Fire and Natural Forces and Other Damage to Property. On 4 August 2010 the authorisation was extended to Health, Other Liability, Credit, Suretyship, Miscellaneous financial losses, Legal expenses and Travel insurance. The change of the corporate name VICTORIA osiguranje d.d. to ERGO osiguranje d.d. was registered at the Commercial Court in Zagreb on 6September under Tt-12/ VICTORIA Life commenced operating on 1 September The change of the corporate name VICTORIA životno osiguranje d.d. to ERGO životno osiguranje d.d. was registered at the Commercial Court in Zagreb on 13 September under Tt-12/ 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. 4 Agram Life Insurance Co. Ltd. 5 Allianz Zagreb Ltd. 6 Basler Insurance Zagreb Ltd. 7 BNP Paribas Cardif Insurance Co. Ltd. Croatia Insurance Co. Ltd. Croatia Health Insurance Co. Ltd. Croatia Lloyd Reinsurance Co. Ltd. 8 ERGO Insurance Ltd. 9 ERGO Life Insurance Ltd. 10 Erste Insurance Vienna Insurance Group Ltd. Euroherc Insurance Co. Ltd. 11 Generali Insurance Co. Ltd. 11 The incorporation of Generali Insurance Ltd. was entered into the court register by decision of the Commercial court in Zagreb passed on 7 August By vitue of the Decision of the Croatian Financial Services Supervisory Agency of 21 December 2006 and according to Decision No. Tt-06/ 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. 98

100 Insurance and Reinsurance Companies 1 GRAWE Hrvatska Ltd. 2 Helios Vienna Insurance Group Ltd. 3 Hrvatska osiguravajuća kuća HOK Insurance Ltd. 4 Hrvatsko kreditno osiguranje d.d. Croatian Credit Insurance Ltd. 5 Izvor Insurance Co. Ltd. 6 Jadransko Insurance Co. Ltd. 7 KD Life Insurance Ltd. Merkur Insurance Co. Ltd. 8 Société Générale Insurance Co. Ltd. 9 Sunce Insurance Co. Ltd. 10 Triglav Insurance Co. Ltd. UNIQA Insurance Co. Ltd. 11 VELEBIT Insurance Ltd. 12 VELEBIT LIFE Insurance Ltd. 13 Wiener Insurance Vienna Insurance Group Ltd. 14 Wüstenrot Life Insurance Ltd. 1 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 On 15 September 2008 the corporate name Osiguranje Helios d.d. was changed to Helios Vienna Insurance Group d.d. za osiguranje. On 11 June 2010 Cosmopolitan Life Vienna Insurance Group Ltd. merged into Helios Vienna Insurance Group Insurance Ltd. by virtue of the decision of the Commercial court in Zagreb No. Tt-10/ The takeover of Helios Vienna Insurance Group Ltd. by Kvarner Vienna Insurance Group d.d. was registered at the Commercial Court in Zagreb on 31 May under No. Tt-13/ In 2007, the corporate name HOK-osiguranje d.d. was changed to Hrvatska osiguravajuća kuća d.d. 4 On 24 September 2009 the Company was granted supervisory authorisation to carry on credit insurance and commenced operating on 18 January The Company 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 With effect from 23 May 2001, the takeover of Mediteran Insurance Co. Ltd. by Jadransko Insurance Co. Ltd. was registered with the Court Registrar at the Commercial Court in Split. By virtue of the decision of the Commercial court in Split No. Tt-04/ 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 transferred to Euroherc Life Insurance. 7 On 17 April 2008 the Company was granted supervisory authorisation to carry on life insurance business and commenced operating on 5 May On 23 December 2008 the Company was granted supervisory authorisation to carry on life insurance business and commenced operating on 1 April On 13 March 2003 the Commercial Court in Zagreb passed the Decision on the liquidation of Poslodavac Mutual Insurance Company. Pursuant to the Act on Amendments to the Health Insurance Act, the portfolio was transferred to Sunce Insurance Co. Ltd. on 1 October The takeover of Veritas Insurance Co. Ltd. was entered in the Court Register based on the Decision of the Commercial Court in Zagreb No. Tt-05/ of 16 November With effect from 1 January 2006, the life insurance portfolio of Sunce Insurance Co. Ltd. was transferred to Agram Life Insurance Co. Ltd. 10 The Company was established in On 1 October 2001 the corporate name Sava Insurance Ltd. was changed to Triglav Insurance Ltd. 11 The Company commenced operating on 1 January The Company commenced business activities on 1 December Following the take-over of Kvarner Insurance Ltd. by Wiener Städtische Insurance Ltd., registered at the Commercial Court in Rijeka on 2 July 2001, the Company changed its name to Kvarner Wiener Städtische Insurance Ltd. on 3 July By Decision of the Commercial Court in Rijeka No. Tt-05/ of 30 December 2005, the takeover of Aurum Wiener Städtische Insurance Co. was entered into the Court Register. The new corporate name Kvarner Vienna Insurance Group Ltd. was registered at the Commercial Court in Rijeka under Tt-07/ on 26 June The takeover of Helios Vienna Insurance Group Ltd. and change of corporate name to Wiener osiguranje Vienna Insurance Group d.d. za osiguranje was entered into the Court Register based on the Decision of the Commercial Court in Zagreb No. Tt-13/ of 31 May. 14 The Company commenced operating on 2 January. 99

101 Insurance and Reinsurance Companies Number of Insurance Undertakings by Ownership and Insurance Business Written 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 natural and legal persons with head office / residence in the Republic of Croatia 6 insurance companies in majority ownership (over 50) of legal persons with head office outside the Republic of Croatia 5 domestic 6 foreign 1 Non-Life 2 Life 3 Composite 4 Reinsurance Total Total domestic 6 foreign 1 Non-Life 2 Life 3 Composite 4 Reinsurance Total Total The Croatian legislation provides that insurance business may be carried on by an insurance company with head office in the Republic of Croatia that was granted supervisory authorisation to write insurance business, insurance companies from Member States which pursuant to the Croatian Insurance Law are entitled to carry on insurance business in the territory of the Republic of Croatia either directly or through a branch and a branch of an insurance company from a third country which obtained authorisation to carry on insurance business from the Supervisory Authority. An insurance company may be set up either in the form of a company limited by shares, European Company (SE),or a mutual insurance company, whereas a reinsurance company may be incorporated as a company limited by shares or a European Company (SE). Insurance companies transacting compulsory traffic insurance business are required to be Members of the Croatian Insurance Bureau. The tabular presentations of the gross premiums written by the companies provide a breakdown of comparative data by major business lines. Certain insurance classes have therefore been grouped in the tables as follows: u Other Casco - include Railway rolling stock (04), Aircraft (05) and Ships (06) u Property comprises Fire and natural forces (08) and Other damage to property (09) u Other Liability comprising Aircraft liability (11), Liability for ships (12) and General liability (13) u Credit, Suretyship and Financial Loss comprises Credit (14), Suretyship (15) and Miscellaneous financial losses (16) u Other relates to Goods in transit (7) and Travel insurance (18) u Life represents all Life insurance classes 100

102 Insurance and Reinsurance Companies Insurance and Reinsurance Companies Insurance Business 99 Number of Insurance Undertakings by Ownership and Insurance Business Written Agram životno osiguranje d.d. Allianz Zagreb d.d. Basler osiguranje Zagreb d.d. BNP Paribas Cardif osiguranje d.d. Croatia Lloyd d.d. Croatia osiguranje d.d. Croatia zdravstveno osiguranje d.d. Ergo osiguranje d.d.* Ergo životno osiguranje osiguranje d.d. Erste Vienna Insurance Group d.d. Euroherc osiguranje d.d. Generali osiguranje d.d. Grawe Hrvatska d.d. HOK osiguranje d.d. Hrvatsko kreditno osiguranje d.d. Izvor osiguranje d.d. Jadransko osiguranje d.d. KD životno osiguranje d.d. Merkur osiguranje d.d. Société Générale osiguranje d.d. Sunce osiguranje d.d. Triglav osiguranje d.d. Uniqa osiguranje d.d. Velebit osiguranje d.d. Velebit životno osiguranje d.d. Wiener osiguranje VIG d.d. Life Composite (Life and Non-Life) Composite (Life and Non-Life) Non-Life Reinsurance Composite (Life and Non-Life) Non-Life Non-Life Life Life Non-Life Composite (Life and Non-Life) Composite (Life and Non-Life) Non-Life Non-Life Non-Life Non-Life Life Composite (Life and Non-Life) Life Non-Life Composite (Life and Non-Life) Composite (Life and Non-Life) Non-Life Life Composite (Life and Non-Life) 27. Wüstenrot životno osiguranje d.d. Life * Ergo osiguranje d.d. was admitted to Membership of the Croatian Insurance Bureau as 15 obligatory Member on 23 January 2014, the entire Membership totalling 20 companies. Members of the 101

103 Insurance and Reinsurance Companies Chart Portfolio Breakdown - Life and Non-Life Business Life Non-Life Insurance company Agram životno osiguranje d.d. Allianz Zagreb d.d. Basler osiguranje Zagreb d.d. BNP Paribas Cardif osiguranje d.d. Croatia osiguranje d.d. Croatia zdravstveno osiguranje d.d. Ergo osiguranje d.d. Ergo životno osiguranje d.d. Erste osiguranje VIG d.d. Euroherc osiguranje d.d. Generali osiguranje d.d. Grawe Hrvatska d.d. HOK osiguranje d.d. Hrvatsko kreditno osiguranje d.d. Izvor osiguranje d.d. Jadransko osiguranje d.d. KD životno osiguranje d.d. Merkur osiguranje d.d. Société Générale osiguranje d.d. Sunce osiguranje d.d. Triglav osiguranje d.d. Uniqa osiguranje d.d. Velebit osiguranje d.d. Velebit životno osiguranje d.d. Wiener osiguranje VIG d.d. Wüstenrot životno osiguranje d.d. 102

104 Insurance and Reinsurance Companies Chart 51 Market s - Total (in 000) Insurance company Agram životno osiguranje d.d. Allianz Zagreb d.d. Basler osiguranje Zagreb d.d. BNP Paribas Cardif osiguranje d.d. Croatia osiguranje d.d. Croatia zdravstveno osiguranje d.d. Ergo osiguranje d.d. Ergo životno osiguranje d.d. Erste osiguranje VIG d.d. Euroherc osiguranje d.d. Generali osiguranje d.d. Grawe Hrvatska d.d. HOK osiguranje d.d. Hrvatsko kreditno osiguranje d.d. Izvor osiguranje d.d. Jadransko osiguranje d.d. KD životno osiguranje d.d. Merkur osiguranje d.d. Société Générale osiguranje d.d. Sunce osiguranje d.d. Triglav osiguranje d.d. Uniqa osiguranje d.d. Velebit osiguranje d.d. Velebit životno osiguranje d.d. Wiener osiguranje VIG d.d. Wüstenrot životno osiguranje d.d. 103

105 Insurance and Reinsurance Companies Chart 52 Market s - Non-Life (in 000) Insurance company 0 40,000 80, , , , , , , , , Allianz Zagreb d.d. Basler osiguranje Zagreb d.d. BNP Paribas Cardif osiguranje d.d. Croatia osiguranje d.d. Croatia zdravstveno osiguranje d.d. Ergo osiguranje d.d. Euroherc osiguranje d.d. Generali osiguranje d.d. Grawe Hrvatska d.d. HOK osiguranje d.d. Hrvatsko kreditno osiguranje d.d. Izvor osiguranje d.d. Jadransko osiguranje d.d. Merkur osiguranje d.d. Sunce osiguranje d.d. Triglav osiguranje d.d. Uniqa osiguranje d.d. Velebit osiguranje d.d. Wiener osiguranje VIG d.d. 104

106 Insurance and Reinsurance Companies Chart 53 Market s - Life (in 000) Insurance company Agram životno osiguranje d.d. Allianz Zagreb d.d. Basler osiguranje Zagreb d.d. Croatia osiguranje d.d. Ergo životno osiguranje d.d. Erste osiguranje VIG d.d. Generali osiguranje d.d. Grawe Hrvatska d.d. KD životno osiguranje d.d. Merkur osiguranje d.d. Société Générale osiguranje d.d. Triglav osiguranje d.d. Uniqa osiguranje d.d. Velebit životno osiguranje d.d. Wiener osiguranje VIG d.d. Wüstenrot životno osiguranje d.d. 105

107 Insurance and Reinsurance Companies 101 Insurance Classes Transacted in Insurance company Agram životno osiguranje d.d. Allianz Zagreb d.d. Basler osiguranje Zagreb d.d. BNP Paribas Cardif osiguranje d.d. Croatia osiguranje d.d. Croatia zdravstveno osiguranje d.d. Ergo osiguranje d.d. Ergo životno osiguranje d.d. Erste osiguranje VIG d.d. Euroherc osiguranje d.d. Generali osiguranje d.d. Grawe Hrvatska d.d. HOK osiguranje d.d. Hrvatsko kreditno osiguranje d.d. Izvor osiguranje d.d. Jadransko osiguranje d.d. KD životno osiguranje d.d. Merkur osiguranje d.d. Société Générale osiguranje d.d. Sunce osiguranje d.d. Triglav osiguranje d.d. Uniqa osiguranje d.d. Velebit osiguranje d.d. Velebit životno osiguranje d.d. Wiener osiguranje VIG d.d. Wüstenrot životno osiguranje d.d. 106

108 Insurance and Reinsurance Companies 101 Insurance Classes Transacted in

109 Insurance and Reinsurance Companies 102 Market s - Gross Written Premium by Company - Total (in ) Insurance company Agram životno osiguranje d.d. Allianz Zagreb d.d. Basler osiguranje Zagreb d.d. BNP Paribas Cardif osiguranje d.d. Croatia osiguranje d.d. Croatia zdravstveno osiguranje d.d. Ergo osiguranje d.d. Ergo životno osiguranje d.d. Erste osiguranje VIG d.d. Euroherc osiguranje d.d. Generali osiguranje d.d. Grawe Hrvatska d.d. HOK osiguranje d.d. Hrvatsko kreditno osiguranje d.d. Izvor osiguranje d.d. Jadransko osiguranje d.d. KD životno osiguranje d.d. Merkur osiguranje d.d. Société Générale osiguranje d.d. Sunce osiguranje d.d. Triglav osiguranje d.d. Uniqa osiguranje d.d. Velebit osiguranje d.d. Velebit životno osiguranje d.d. Wiener osiguranje VIG d.d. Wüstenrot životno osiguranje d.d. Total 108

110 Insurance and Reinsurance Companies 102 Market s - Gross Written Premium by Company - Total (in ) Gross Written Premium (in ) Indeks 13/12 (in ) 26,841,165 27,146, ,836, ,737, ,349,010 53,064, ,986,120 6,878, ,519, ,612, ,039,091 17,154, , , ,742,058 1,892, ,280,275 18,393, ,937, ,113, ,952,742 48,292, ,719,947 51,974, ,522,797 25,863, ,013,850 1,188, ,240,497 4,552, ,830,249 82,668, ,092,739 1,962, ,670,879 35,966, ,553,991 5,458, ,213,356 15,426, ,931,150 46,980, ,852,426 36,710, ,614,275 9,033, ,468,823 2,123, ,161,696 72,927, ,271 2,017, ,193,426,814 1,198,460,

111 Insurance and Reinsurance Companies 103 Market s - Gross Written Premium by Company - Non-Life (in ) Note: The total Non-Life Gross Written Premium includes co-insurance premiums totalling 123,007 and by Company: 1. Basler osiguranje Zagreb d.d. - Non-Life GWP includes co-insurance premiums amounting to 14, Euroherc osiguranje d.d. - Non-Life GWP includes co-insurance premiums amounting to 45, Jadransko osiguranje d.d. - Non-Life GWP includes co-insurance premiums amounting to 41, Sunce osiguranje d.d. - Non-Life GWP includes co-insurance premiums amounting to 21,806 Insurance company Agram životno osiguranje d.d. Allianz Zagreb d.d. Basler osiguranje Zagreb d.d. BNP Paribas Cardif osiguranje d.d. Croatia osiguranje d.d. Croatia zdravstveno osiguranje d.d. Ergo osiguranje d.d. Ergo životno osiguranje d.d. Erste osiguranje VIG d.d. Euroherc osiguranje d.d. Generali osiguranje d.d. Grawe Hrvatska d.d. HOK osiguranje d.d. Hrvatsko kreditno osiguranje d.d. Izvor osiguranje d.d. Jadransko osiguranje d.d. KD životno osiguranje d.d. Merkur osiguranje d.d. Société Générale osiguranje d.d. Sunce osiguranje d.d. Triglav osiguranje d.d. Uniqa osiguranje d.d. Velebit osiguranje d.d. Velebit životno osiguranje d.d. Wiener osiguranje VIG d.d. Wüstenrot životno osiguranje d.d. Total 110

112 Insurance and Reinsurance Companies Note: The total Non-Life Gross Written Premium includes co-insurance premiums totalling 633,090 and by Company: 1. Basler osiguranje Zagreb d.d. - Non-Life GWP includes co-insurance premiums amounting to 5, Euroherc osiguranje d.d. - Non-Life GWP includes co-insurance premiums amounting to 44, Generali osiguranje d.d. - Non-Life GWP includes co-insurance premiums amounting to 521, Helios VIG osiguranje d.d. - Non-Life GWP includes co-insurance premiums amounting to Jadransko osiguranje d.d. - Non-Life GWP includes co-insurance premiums amounting to 40, Sunce osiguranje d.d. - Non-Life GWP includes co-insurance premiums amounting to 20, Market s - Gross Written Premium by Company - Non-Life (in ) Gross Written Premium (in ) Indeks 13/12 (in ) ,698,895 93,496, ,885,771 27,677, ,986,120 6,878, ,481, ,599, ,039,091 17,154, , , ,937, ,113, ,467,456 32,464, ,613,566 19,497, ,522,797 25,863, ,013,850 1,188, ,240,497 4,552, ,830,249 82,668, ,027,854 3,818, ,213,356 15,426, ,828,287 38,383, ,473,964 19,902, ,614,275 9,033, ,429,071 37,252, ,459, ,292,

113 Insurance and Reinsurance Companies 104 Market s Gross Written Premium by Company Life (in ) Insurance company Agram životno osiguranje d.d. Allianz Zagreb d.d. Basler osiguranje Zagreb d.d. BNP Paribas Cardif osiguranje d.d. Croatia osiguranje d.d. Croatia zdravstveno osiguranje d.d. Ergo osiguranje d.d. Ergo životno osiguranje d.d. Erste osiguranje VIG d.d. Euroherc osiguranje d.d. Generali osiguranje d.d. Grawe Hrvatska d.d. HOK osiguranje d.d. Hrvatsko kreditno osiguranje d.d. Izvor osiguranje d.d. Jadransko osiguranje d.d. KD životno osiguranje d.d. Merkur osiguranje d.d. Société Générale osiguranje d.d. Sunce osiguranje d.d. Triglav osiguranje d.d. Uniqa osiguranje d.d. Velebit osiguranje d.d. Velebit životno osiguranje d.d. Wiener osiguranje VIG d.d. Wüstenrot životno osiguranje d.d. Total 112

114 Insurance and Reinsurance Companies Market s Gross Written Premium by Company Life (in ) Gross Written Premium (in ) Indeks 13/12 (in ) 26,841,165 27,146, ,137,724 62,240, ,463,239 25,386, ,038,175 47,012, ,742,058 1,892, ,280,275 18,393, ,485,286 15,828, ,106,381 32,476, ,092,739 1,962, ,643,025 32,148, ,553,991 5,458, ,102,863 8,596, ,378,463 16,808, ,468,823 2,123, ,732,625 35,674, ,271 2,017, ,967, ,168,

115 23 Insurance and Reinsurance Companies Agram životno osiguranje d.d. Agram životno osiguranje d.d Zagreb, Trnjanska cesta 108 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt-97/ of 24 June 1997, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/20, of 6 December 2007 and UP/I /13-30/15, of6 September 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. On 6 September, the Company was granted additional supervisory authorisation to carry on accident and health insurance business. Transaction Account Number: Kreditna banka Zagreb d.d. HR Branch Office: BJELOVAR bjelovar@agramlife.hr Zagrebačka 51, HR Bjelovar phone: / fax / DUBROVNIK dubrovnik@agramlife.hr Liechensteinov put 12, HR Dubrovnik phone: / fax / OSIJEK osijek@agramlife.hr Vukovarska 31, HR Osijek phone: / fax / PULA pula@agramlife.hr Matka Laginje 3, HR Pula phone: / fax / RIJEKA rijeka@agramlife.hr Riva 8, HR Rijeka phone: / fax / SISAK sisak@agramlife.hr Franje Lovrića 17a, HR Sisak phone: / fax / SLAVONSKI BROD slavonski.brod@agramlife.hr Petra Svačića 1a, HR Slavonski Brod phone: / fax / SPLIT split@agramlife.hr Varaždinska 54, HR Split phone: / fax / VARAŽDIN varazdin@agramlife.hr Zagrebačka 63, HR Varaždin phone: / fax / ZADAR zadar@agramlife.hr Obala kneza Branimira 5, HR Zadar phone: / fax / ZAGREB zagreb@agramlife.hr Trnjanska cesta 108, HR Zagreb phone: / fax / Ownership structure: legal and natural persons with head office residence in HR 100 Chairman of the Management Board: Tomislav Novačić Members of the Management Board: Goran Nadj Chairman of the Supervisory Board: Božidar Huljev Employees as at 31 December : 114 Number of Branches:

116 Insurance and Reinsurance Companies 0 5,000 10,000 15,000 20,000 25,000 30, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses All Non-Life Life ,841, ,146, TOTAL 26,841, ,146,

117 04 Insurance and Reinsurance Companies Allianz Zagreb d.d. Allianz Zagreb d.d Zagreb, Heinzelova 70 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Fi-9055/91-2 of 20 December 1991, Court Register No. MBS Supervisory Authorisation: UP/I /06-30/50, of 11 October 2007 Branch Office OSIJEK PULA RIJEKA SPLIT VARAŽDIN ZAGREB Ulica Sv. Ane br. 82b, HR Osijek phone: / fax / Divkovićeva 2c, HR Pula phone: / fax / A. Starčevića 10-12, HR Rijeka phone: / fax / Poljička 39, HR Split phone: / fax / Kapucinski trg 5, HR Varaždin phone: / fax / Heinzelova 70, HR Zagreb phone: / fax / Transaction Account Number: Zagrebačka banka d.d. HR Non-Life Zagrebačka banka d.d. HR Life Ownership structure: legal persons with head office in HR (Zagrebačka banka d.d.) legal persons with head office outside HR (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: Dr. Manfred Knof Employees as at 31 December : 1,763 Branches: 6 Offices:

118 Insurance and Reinsurance Companies 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 6,226, ,603, , , ,708, ,297, ,107, ,316, ,536, ,301, ,346, ,826, ,487, ,205, ,631, ,238, ,621, ,680, All Non-Life Life 89,698, ,496, ,137, ,240, TOTAL 143,836, ,737,

119 12 Insurance and Reinsurance Companies Basler osiguranje Zagreb d.d. Basler osiguranje Zagreb d.d Zagreb, Radnička cesta 37b Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Fi-3811/91-2 of 25 April 1991 (incorporation as mutual insurance company); County Commercial Court in Zagreb Fi-9182/91-2 of 29 August 1991 (change of status to a company limited by shares); Court Register No. MBS Supervisory Authorisation: UP/I /07-30/34, of 7 February 2008 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 By Decision 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. The takeover by UNIQA osiguranje d.d. is expected to be completed by September Transaction Account Number: Privredna banka Zagreb d.d. HR Non-Life Raiffeisenbank Austria Zagreb d.d. HR Life Ownership structure: legal persons with head office outside HR 100 (Bâloise Holding) Chairman of the Management Board: Gerald Müller (until 12 March 2014 Darko Cesar) Member of the Management Board: Luka Matošić (Monika Brzović and Krešimir Kolar from 7 August until 12 March 2014) Chairman of the Supervisory Board:William Peter Zutter Employees as at 31 December : 497 Regions: 4 Offices: 10 Regions Regija Slavonije Regija Istre i Kvarnera Regija Dalmacije Regija Zagreba i Srednjohrvatske makroregije Županijska 19, HR Osijek phone: / fax / J. Trdine 2, HR Rijeka phone: / fax / Spinčićeva 2c, HR Split phone: / fax / Radnička 37b, HR Zagreb phone: / fax /

120 Insurance and Reinsurance Companies 0 6,000 12,000 18,000 24,000 30, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 2,189, ,926, ,677, ,859, ,701, ,751, , , ,192, ,459, ,369, ,710, ,130, ,318, , , , , , , All Non-Life Life 26,885, ,677, ,463, ,386, TOTAL 53,349, ,064,

121 36 Insurance and Reinsurance Companies BNP Paribas Cardif osiguranje d.d. BNP Paribas Cardif osiguranje d.d Zagreb, Ivana Lučića 2a Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt- 07/ of 24 July 2007, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/35, 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. HR Ownership structure: legal persons with head office outside HR 100 (BNP Paribas Cardif) Chairwoman of the Management Board: Ana Ivančić Member of the Management Board: Darija Ivanković Chairman of the Supervisory Board: Pier-Paolo Dipaola Employees as at 31 December :

122 Insurance and Reinsurance Companies 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses , ,986, ,867, All Non-Life Life 9,986, ,878, TOTAL 9,986, ,878,

123 01 Insurance and Reinsurance Companies Croatia osiguranje d.d. Croatia osiguranje d.d Zagreb, Miramarska 22 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Fi-7361/90-2 of 10 October 1990, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/09, of 6 December 2007 Transaction Account Number: Privredna banka Zagreb d.d. HR Non-Life Privredna banka Zagreb d.d. HR Life Ownership structure: Republic of Croatia (Croatian State Property Management Agency) ADRIS grupa d.d legal and natural persons with head office / residence in HR Chairman of the Management Board: Sanel Volarić (until 22 April 2014 Krešimir Starčević; from 23 April 2014 until 9 May 2014 Nikola Mišetić) Branch Office DUBROVNIK Dr. Ante Starčevića 9, HR Dubrovnik informacije.dubrovnik@crosig.hr phone: / fax / KUTINA Školska ulica 4, HR Kutina informacije.kutina@crosig.hr phone: / fax / OSIJEK Gajev trg 1, HR Osijek informacije.osijek@crosig.hr phone: / fax / PULA Marka Marulića 1, HR Pula informacije.pula@crosig.hr phone: / fax / RIJEKA Korzo 39, HR Rijeka informacije.rijeka@crosig.hr phone: / fax / SLAVONSKI BROD Mažuranićeva 14, HR Slavonski Brod informacije.slbrod@crosig.hr phone: / fax / SPLIT Trg Hrv. bratske zajednice 8, HR Split informacije.split@crosig.hr phone: / fax / VARAŽDIN Kapucinski trg 14, HR Varaždin informacije.varazdin@crosig.hr phone: / fax / ZABOK Matije Gupca 13, HR Zabok informacije.zabok@crosig.hr phone: / fax / ZADAR Obala Kneza Branimira 20, HR Zadar informacije.zadar@crosig.hr phone: / fax / ZAGREB Trg bana J. Jelačića 13, HR Zagreb informacije.zagreb@crosig.hr phone: / fax / ZAGREBAČKI PRSTEN Trg kralja Tomislava 16, HR Velika Gorica infovelikagorica@crosig.hr phone: / fax / T ransport & Credit Miramarska 22, HR Zagreb Insurance Branch Zagreb phone: / fax / informacije.zagrebpik@crosig.hr Members of the Management Board: Nikola Mišetić, Andrej Koštomaj (until 22 April 2014 Ivan Fabijančić) Chairman of the Supervisory Board: Ante Vlahović (until 22 April 2014 Mladen Blažević) Employees as at 31 December : 2,715 Branches: 13 Offices:

124 Insurance and Reinsurance Companies 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90, , , Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 23,200, ,273, ,014, ,466, ,800, ,808, ,448, ,759, ,680, ,575, ,537, ,564, ,738, ,048, ,081, ,295, ,981, ,807, All Non-Life Life 309,481, ,599, ,038, ,012, TOTAL 357,519, ,612,

125 10 Insurance and Reinsurance Companies Croatia Lloyd d.d. za reosiguranje Croatia Lloyd d.d. za reosiguranje Zagreb, Ulica grada Vukovara 62 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under I-2139 of 13 February 1991, Court Register No. MBS Supervisory Authorisation: UP/I /07-03/02, of 11 October 2007 Transaction Account Number: Privredna banka Zagreb d.d. HR Ownership structure: legal persons with head office in HR 100 (Croatia osiguranje d.d. 100) Chairwoman of the Management Board: Kitica Mioč Deputy Member of Management Board: Vančo Balen (until 26 February 2014 Tomislav Malenica) Chairman of the Supervisory Board: Ivan Fabijančić Employees as at 31 December :

126 Insurance and Reinsurance Companies Gross Reinsurance Premium - : 52,473,429 Retrocession Premium: 38,108,487 Retained Premium: 14,364,

127 33 Insurance and Reinsurance Companies Croatia zdravstveno osiguranje d.d. Croatia zdravstveno osiguranje d.d Zagreb, Miramarska 22 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb on 3 March 2004 under Court Register No. MBS Supervisory Authorisation: UP/I /07-30/11, of 6 December 2007 Croatia Health Insurance Ltd. was established in March 2004 as insurer specialising in voluntary health insurance. Transaction Account Number: Privredna banka Zagreb d.d. HR Ownership structure: domestic legal persons 100 (Croatia osiguranje d.d , Croatia Lloyd d.d ) Chairman of the Management Board: Damir Mihanović (until 19 February Kristian Podrug) Members of the Management Board: Mario Puljiz, Damir Mihanović (until 19 February ) Chairman of the Supervisory Board: Krešimir Starčević Employees as at 31 December :

128 Insurance and Reinsurance Companies 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses ,039, ,154, All Non-Life Life 13,039, ,154, TOTAL 13,039, ,154,

129 41 Insurance and Reinsurance Companies ERGO osiguranje d.d. ERGO osiguranje d.d Zagreb, Radnička cesta 80 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb on2 January 2009, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/62, of 4 December 2008, UP/I /10-30/6, of 4 August 2010 and UP/I /13-30/12, of 15 November On 6 September the corporate name VICTORIA osiguranje d.d. was changed to ERGO osiguranje d.d. The company 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 and on 4 August 2010 also for the following insurance classes: Health, Other Liability, Credit, Suretyship, Miscellaneous financial losses, Legal expenses and Travel insurance. On 15 November it received authorisation for the classes Motor Casco and Motor Third Party Liability. Transaction Account Number: Sberbank d.d. HR Ownership structure: legal persons with head office outside HR 100 Chairman of the Management Board: Žarko Fatović (until 21 January 2014 Harald Josef Londer, Deputy Chairman) Member of the Management Board: Igor Peševski Chairman of the Supervisory Board: Harald Josef Londer (until 21 January 2014 Elisabeth Stadler, Deputy Chairwoman) Employees as at 31 December :

130 Insurance and Reinsurance Companies Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 100, , , , , , All Non-Life Life 155, , TOTAL 155, ,

131 40 Insurance and Reinsurance Companies ERGO životno osiguranje d.d. ERGO životno osiguranje d.d Zagreb, Radnička cesta 80 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt-08/ of 30 June 2008, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/63, of 5June 2008 The Company was granted supervisory authorisation to carry on life insurance business on 5 June 2008 and commenced operating on 1 September On 13 September the corporate name VICTORIA životno osiguranje d.d. was changed to ERGO životno osiguranje d.d. Transaction Account Number: Sberbank d.d. HR Ownership structure: legal persons with head office outside HR 100 Chairwoman of the Management Board: Anica Gabrovec (until 21 January 2014 Žarko Fatović) Member of the Management Board: Azem Raković (until 21 January 2014 Anica Gabrovec; from 21 January 2014 until 1 March 2014 Harald Josef Londer) Chairman of the Supervisory Board: Harald Josef Londer (from 21 January 2014 until 1 March 2014 Elisabeth Stadler, Deputy Chairwoman) Employees as at 31 December :

132 Insurance and Reinsurance Companies ,500 2,250 3, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses All Non-Life Life ,742, ,892, TOTAL 2,742, ,892,

133 35 Insurance and Reinsurance Companies Erste osiguranje Vienna Insurance Group d.d. Erste osiguranje Vienna Insurance Group d.d Zagreb, Slovenska 24 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt-05/ of 29 June 2005, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/10, 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 HR Ownership structure: legal persons with head office in HR 10 legal persons with head office outside HR 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 Member of the Management Board: Marijan Jalšovec Chairman of the Supervisory Board: Peter Franz Höfinger Employees as at 31 December :

134 Insurance and Reinsurance Companies 0 4,000 8,000 12,000 16,000 20, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses All Non-Life Life ,280, ,393, TOTAL 15,280, ,393,

135 08 Insurance and Reinsurance Companies Euroherc osiguranje d.d. Euroherc osiguranje d.d Zagreb, Ulica grada Vukovara 282 Company Reg. No: MB Company ID No: OIB Phone / Toll Free Info Phone Fax / Company Registration: Commercial Court in Split, I of 3 November 1992, Court Register No. MBS Supervisory Authorisation: UP/I / , of 6 December 2007 (513-04/92of 19 October 1992) and UP/I / of 10 September 2009 Transaction Account Number: SG Splitska banka d.d. Split HR Kreditna banka Zagreb d.d. HR Ownership structure: legal persons with head office in HR natural persons with residence in HR natural persons with residence abroad 5.27 Chairman of the Management Board: Damir Zorić Members of the Management Board: Željko Kordić and Tomislav Čizmić Authorized Representative (Procurist): Darinko Ivković Branch Office BJELOVAR bj@euroherc.hr Zagrebačka 51, HR Bjelovar phone: / fax / ČAKOVEC ck@euroherc.hr Kralja Tomislava 30, HR Čakovec phone: / fax / DUBROVNIK du@euroherc.hr Dr. Ante Starčevića 20, HR Dubrovnik phone: / fax / KARLOVAC ka@euroherc.hr Prilaz V. Holjevca 2a, HR Karlovac phone: / fax / OSIJEK os@euroherc.hr Ul. Hrvatske Republike 45, HR Osijek phone: / fax / PULA pu@euroherc.hr Matka Laginje 3, HR Pula phone: / fax / RIJEKA ri@euroherc.hr Riva 8, HR Rijeka phone: / fax / SISAK sk@euroherc.hr Franje Lovrića 17a, HR Sisak phone: / fax / SLAVONSKI BROD sb@euroherc.hr Petra Svačića 1a, HR Slavonski Brod phone: / fax // SPLIT st@euroherc.hr Varaždinska 54, HR Split phone: / fax / VARAŽDIN vz@euroherc.hr Zagrebačka 63, HR Varaždin phone: / fax / VELIKA GORICA vg@euroherc.hr Slavka Kolara 17a, HR Velika Gorica phone: / fax / ZADAR zd@euroherc.hr Obala kneza Branimira 5, HR Zadar phone: / fax / ZAGREB zg@euroherc.hr Ulica grada Vukovara 282, HR Zagreb phone: / fax / Chairwoman of the Supervisory Board: Mladenka Grgić Employees as at 31 December : 1,121 Branches: 14 Offices:

136 Insurance and Reinsurance Companies 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life *Euroherc osiguranje d.d. Non-Life GWP includes co-insurance premiums amounting to 45,127 Non-Life GWP includes co-insurance premiums amounting to 44, Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 11,698, ,760, , , ,739, ,027, , , ,917, ,990, ,544, ,732, ,978, ,400, , ,463, , , All Non-Life Life 128,937, ,113, TOTAL 128,937, ,113,

137 32 Insurance and Reinsurance Companies Generali osiguranje d.d. Generali osiguranje d.d. Head Office Zagreb Zagreb, Bani 110 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt- 97/331-2 of 4 February 1997, under corporate name Libertas osiguranje d.d., Court Register No. MBS Supervisory Authorisation: UP/I /06-30/34, of 21 December 2006, UP/I /07-30/57, of 20 December 2007 On 29 December 2006, the companies Generali insurance Ltd. and Generali Life Insurance Ltd. merged with Libertas Insurance Ltd. that was simultaneously renamed Generali Insurance Ltd. Regional Head Office OSIJEK RIJEKA SPLIT VARAŽDIN ZAGREB Ulica Hrvatske Republike 33, HR Osijek phone: / fax / Put Vele crikve 1, HR Rijeka phone: / fax / Poljička cesta 43, HR Split phone: / fax / Pavleka Miškine 48, HR Varaždin phone: / fax / Bani 110, HR Zagreb phone: / fax / Transaction Account Number: Privredna banka Zagreb d.d. HR Non-Life Privredna banka Zagreb d.d. HR Life Ownership structure: legal persons with head office outside HR 100 (Generali PPF Holding B.V. Amsterdam) Chairman of the Management Board: Georg Engl Members of the Management Board: Marijan Kralj (until 29 April Jasminka Horvat Martinović; from 29 April until 8 April 2014 Gregor Pilgram, Deputy Member of Board) Chairman of the Supervisory Board: Gregor Pilgram (from 29 April until 8 April 2014 Lorenzo Kravina, Deputy Chairman) Employees as at 31 December : 500 Branches: 5 Regional Head Offices Internal Sales Offices: 56 External Sales Offices:

138 Insurance and Reinsurance Companies 0 4,000 8,000 12,000 16, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life *Generali osiguranje d.d Non-Life GWP includes co-insurance premiums amounting to 521,628 Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 2,966, ,352, ,677, ,505, ,996, ,058, ,758, ,215, ,910, ,375, ,655, ,829, ,100, ,546, , , , All Non-Life Life 29,467, ,464, ,485, ,828, TOTAL 44,952, ,292,

139 13 Insurance and Reinsurance Companies GRAWE Hrvatska d.d. GRAWE Hrvatska d.d Zagreb, Ulica grada Vukovara 5 Company Reg. No: MB Company ID No: OIB Phone / Fax / info@grawe.hr Company Registration: Commercial Court in Zagreb under Fi-13420/93 of 19 July 1993 and corporate name Prima osiguranje d.d., Court Register No. MBS Regional Centre OSIJEK PULA Ribarska 10, HR Osijek phone: / fax / Mletačka 12, HR Pula phone: / fax / RIJEKA Prolaz M. K. Kozulić 1, HR Rijeka phone: / fax / fax / SPLIT Sinjska 5, HR Split phone: / fax / Supervisory Authorisation: UP/I /07-30/13, of 11 October 2007 Transaction Account Number: Hypo-Alpe-Adria-Bank d.d. Zagreb HR Non-Life Hypo-Alpe-Adria-Bank d.d. Zagreb HR Life Ownership structure: legal persons with head office outside HR 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 : 701 Branches: 2 Offices:

140 Insurance and Reinsurance Companies 0 7,000 14,000 21,000 28,000 35, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 3,356, ,189, , , ,557, ,490, , , ,744, ,813, ,693, ,651, , , , , , , All Non-Life Life 18,613, ,497, ,106, ,476, TOTAL 51,719, ,974,

141 30 Insurance and Reinsurance Companies Hrvatska osiguravajuća kuća d.d. Hrvatska osiguravajuća kuća d.d Zagreb, Capraška ulica 6 Company Reg. No: MB Company ID No: OIB Phone / Fax / hok@hok-osiguranje.hr Company Registration: Commercial Court in Zagreb under Tt-00/ of 18 July 2001, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/32 and UP/I /07-30/21 of 15 March 2007 Regional Head Office OSIJEK RIJEKA SPLIT VARAŽDIN ZADAR ZAGREB Ivana Gundulića 128, HR Osijek phone: / fax / Corrada Ilijaschia 22, HR Rijeka phone: / fax / Brigade 10, HR Split phone: / fax / Optujska 25, HR Varaždin phone: / fax / Ante Starčevića bb, HR Zadar phone: / fax / Capraška ulica 6, HR Zagreb phone: / fax / Transaction Account Number: Zagrebačka banka d.d. HR Ownership structure: legal persons with head office in HR 100 Chairman of the Management Board: Hrvoje Pezić Member of the Management Board: Ljilja Vasilj Starčić Chairman of the Supervisory Board: Marijan Kostrenčić Employees as at 31 December : 278 Regional Head Offices: 6 Offices:

142 Insurance and Reinsurance Companies 0 4,000 8,000 12,000 16,000 20, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 804, , , , ,100, ,193, , , ,110, ,254, ,951, ,830, ,038, ,169, , , , , , , All Non-Life Life 24,522, ,863, TOTAL 24,522, ,863,

143 43 Insurance and Reinsurance Companies Hrvatsko kreditno osiguranje d.d. Hrvatsko kreditno osiguranje d.d Zagreb, Bednjanska 14 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt-09/ of 18 January 2010, Court Register No. MBS Supervisory Authorisation: UP/I /08-30/11, of 24September 2009 Croatian Credit Insurance Ltd. was granted supervisory authorisation to carry on credit insurance on 24 September 2009 and commenced operating on 18 January Transaction Account Number: Erste&Steiermärkische Bank d.d. HR Ownership structure: legal persons with head office in HR 100 (Croatian Bank for Reconstruction and Development) Chairman of the Management Board: Edvard Ribarić Members of the Management Board: Ksenija Sanjković Chairman of the Supervisory Board: Branimir Berković Employees as at 31 December :

144 Insurance and Reinsurance Companies , Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses ,013, ,188, All Non-Life Life 1,013, ,188, TOTAL 1,013, ,188,

145 44 Insurance and Reinsurance Companies Izvor osiguranje d.d. Izvor osiguranje d.d Zagreb, Trpinjska 9 Company Reg. No: MB Company ID No: OIB Phone / Fax / info@izvorosiguranje.hr Regional Office RIJEKA Riva Boduli 1, HR Rijeka phone: / fax / SPLIT Put Brodarice 6, HR Split phone: / fax / ZADAR Dr. Franje Tuđmana 46, HR Zadar phone: / fax / ZAGREB Trpinjska 9, HR Zagreb phone: / fax / Company Registration: Commercial Court in Zagreb under Tt-10/ of 12 October 2010, Court Register No. MBS Supervisory Authorisation: UP/I /10-30/2, of 23 September 2010 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 Transaction Account Number: Zagrebačka banka d.d. HR Ownership structure: natural persons with residence in HR 100 Chairwoman of the Management Board: Ivana Andabak Member of the Management Board: Svemir Kalinić (as of 12 April ) Chairman of the Supervisory Board: Jako Andabak Employees as at 31 December : 92 Regional Offices: 4 Sales Offices:

146 Insurance and Reinsurance Companies ,600 2,400 3, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 258, , , , , , , , ,973, ,163, , , , , , All Non-Life Life 4,240, ,552, TOTAL 4,240, ,552,

147 06 Insurance and Reinsurance Companies Jadransko osiguranje d.d. Jadransko osiguranje d.d Zagreb, Listopadska 2 Company Reg. No: MB Company ID No: OIB Phone / Fax / jadransko@jadransko.hr Company Registration: Commercial Court in Split, Fi-3424/9 of 21 August 1991, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/15, of 6 December 2007 and UP/I /12-30/14, of 11 October Transaction Account Number: SG Splitska banka d.d. HR Kreditna banka Zagreb d.d. HR Ownership structure: legal and natural persons with head office / residence in HR 95 legal persons with head office outside HR 5 Branch Office DUBROVNIK du@jadransko.hr Iva Vojnovića 116, HR Dubrovnik phone: / fax / KOPRIVNICA kc@jadransko.hr Križevačka 13, HR Koprivnica phone: / fax / OSIJEK os@jadransko.hr Gundulićeva 5b, HR Osijek phone: / fax / PULA pu@jadransko.hr Industrijska 15c, HR Pula phone: / fax / RIJEKA ri@jadransko.hr Riva 8, HR Rijeka phone: / fax / SISAK sk@jadransko.hr Franje Lovrića 17a, HR Sisak phone: / fax / SPLIT st@jadransko.hr Varaždinska 54, HR Split phone: / fax / ŠIBENIK ši@jadransko.hr Put Bioca 27, HR Šibenik phone: / fax / ZADAR zd@jadransko.hr Jadranska cesta 72, HR Zadar phone: / fax / ZAGREB zg@jadransko.hr Listopadska 2, HR Zagreb phone: / fax / Chairwoman of the Management Board: Sanja Ćorić (until 30 September Goran Jurišić) Members of the Management Board: Goran Jurišić (as from 1 October ), Danijela Šaban and Danijel Bara Chairman of the Supervisory Board: Ante Jažo (until 26 June Žarko Bubalo) Employees as at 31 December : 822 Branches:

148 Insurance and Reinsurance Companies 0 10,000 20,000 30,000 40,000 50,000 60, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life * Jadransko osiguranje d.d. Non-Life GWP includes co-insurance premiums amounting to 41,182 Non-Life GWP includes co-insurance premiums amounting to 40, Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 7,331, ,049, , , ,634, ,868, , , ,825, ,933, ,103, ,287, ,007, ,090, , , , , All Non-Life Life 82,830, ,668, TOTAL 82,830, ,668,

149 39 Insurance and Reinsurance Companies KD životno osiguranje d.d. KD životno osiguranje d.d Zagreb, Draškovićeva 10 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt-08/ of 5 May 2008, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/65, 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 Transaction Account Number: Privredna banka Zagreb d.d. HR Ownership structure: legal persons with head office outside HR 100 Chairman of the Management Board: Neven Tišma Members of the Management Board: Zvjezdan Karlić (until 29 November Neda Thaler, Deputy Member) Chairman of the Supervisory Board: Matija Šenk (until 20 September Maja Benko) Employees as at 31 December : 88 Offices: 6 148

150 Insurance and Reinsurance Companies ,400 2, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses All Non-Life Life ,092, ,962, TOTAL 2,092, ,962,

151 15 Insurance and Reinsurance Companies Merkur osiguranje d.d. Merkur osiguranje d.d Zagreb, Ulica kneza Ljudevita Posavskog 31 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt-96-19/2 of 11 January 1996, Court Register No. MBS Supervisory Authorisation: UP/I /95-01/02, /95-1 of 12 December 1995; UP/I /07-30/16, of 6 December 2007 and UP/I /11-30/12, of 14 July 2011 Branch Office ČAKOVEC cakovec@merkur.hr Matice Hrvatske 6, HR Čakovec phone: / fax / OSIJEK osijek@merkur.hr Ivana Gundulića 5, HR Osijek phone: / fax / PULA pula@merkur.hr Vrtlarska 7, HR Pula phone: / fax / RIJEKA rijeka@merkur.hr Mljekarski trg 2, HR Rijeka phone: / fax / SPLIT split@merkur.hr Trg hrv. bratske zaj. 3A, HR Split phone: / fax / VARAŽDIN varazdin@merkur.hr Braće Radić 1, HR Varaždin phone: / fax / Transaction Account Number: Raiffeisenbank Austria d.d. Zagreb HR Non-Life SG Splitska banka d.d. HR Life Ownership structure: legal persons with head office outside HR 100 (Merkur Versicherung AG Graz) Chairman of the Management Board: Milan Krizmanić Members of the Management Board: Zdenka Rizman, Dalibor Ðurkan Chairman of the Supervisory Board: Andreas Stettner Employees as at 31 December : 284 Branches: 6 Sales Offices:

152 Insurance and Reinsurance Companies 0 5,000 10,000 15,000 20,000 25,000 30,000 35, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 684, , , , ,333, ,224, , , , , , , All Non-Life Life 4,027, ,818, ,643, ,148, TOTAL 37,670, ,966,

153 42 Insurance and Reinsurance Companies Société Générale osiguranje d.d. Société Générale osiguranje d.d Zagreb, Ulica grada Vukovara 284 Company Reg. No: MB Company ID No: OIB Branch Office ZAGREB Ulica grada Vukovara 284, HR Zagreb phone: / fax / Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt-09/ of 18 March 2009, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/64, of 23 December 2008 Société GénéraleInsurance Co.Ltd. was granted supervisory authorisation to carry on life insurance business on 23 December 2008 and commenced operating on 1 April Transaction Account Number: SG Splitska bankad.d. HR Ownership structure: legal persons with head office in HR 49 legal persons with head office outside HR 51 Deputy Chairwoman of the Management Board: Marlène Marie Pradeilles Members of the Management Board: Mladen Gavrančić Chairman of the Supervisory Board: Pascal Bied-Charreton Employees as at 31 December : 11 Branches: 1 152

154 Insurance and Reinsurance Companies ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses All Non-Life Life ,553, ,458, TOTAL 5,553, ,458,

155 19 Insurance and Reinsurance Companies Sunce osiguranje d.d. Sunce osiguranje d.d Zagreb, Trnjanska cesta 108 Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt-96/ on 30 August 1996, Court Register No. MBS Branch Office OSIJEK Vukovarska cesta 31, HR Osijek phone: / fax / RIJEKA Riva 8, HR Rijeka phone: / fax / SPLIT Varaždinska 54, HR Split phone: / fax / ZADAR Obala Kneza Branimira 5, HR Zadar phone: / fax / ZAGREB Trnjanska cesta 108, HR Zagreb phone: / fax / Supervisory Authorisation: UP/I /07-30/18, of 6 December 2007 Transaction Account Number: Kreditna banka Zagreb d.d. HR Ownership structure: legal persons with head office in HR natural persons with residence in HR Chairwoman of the Management Board: Ivana Bratanić, M.Sc. (from 28 March until 31 May Alenka Pezo, Deputy Chairwoman) Member of the Management Board: Maja Škrtić (until 31 May Nikica Mia Vukšić, M.Sc.; from 1 June until 31 December Alenka Pezo, Deputy Member of Board) Chairwoman of the Supervisory Board: Alenka Pezo Employees as at 31 December : 102 Branches: 5 Offices: 5 154

156 Insurance and Reinsurance Companies 0 1,500 3,000 4,500 6,000 7,500 9,000 10,500 12,000 13,500 15, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life * Sunce osiguranje d.d. Non-Life GWP includes co-insurance premiums amounting to 21,806 Non-Life GWP includes co-insurance premiums amounting to 20, Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 781, , ,147, ,479, , , , , ,037, , ,063, ,753, , , , , ,296, , All Non-Life Life 22,213, ,426, TOTAL 22,213, ,426,

157 02 Insurance and Reinsurance Companies Triglav osiguranje d.d. Triglav osiguranje d.d Zagreb, Antuna Heinza 4 Company Reg. No: MB Company ID No: OIB Phone / Fax / centrala@triglav-osiguranje.hr Company Registration: Commercial Court in Rijeka, Fi of 26 July 1993, Court Register No. MBS Supervisory Authorisation: /92/3of 14 December 1992; UP/I /07-30/33, of 17 July 2008 Transaction Account Number: Erste & Steiermärkische bank d.d. HR Non-Life Zagrebačka banka d.d. HR Life Zagrebačka banka d.d. HR Investment Life Branch Office ČAKOVEC cakovec@triglav-osiguranje.hr Žrtava fašizma 1, HR Čakovec phone: / fax / KOPRIVNICA koprivnica@triglav-osiguranje.hr Taraščice 20, HR Koprivnica phone: / fax / OSIJEK osijek@triglav-osiguranje.hr Trg Lava Mirskog 3, HR Osijek phone: / fax / PULA pula@triglav-osiguranje.hr Trierska 4, HR Pula phone: / fax / RIJEKA rijeka@triglav-osiguranje.hr Zvonimirova 20a, HR Rijeka phone: / fax / SPLIT split@triglav-osiguranje.hr Lička 4, HR Split phone: / fax / VARAŽDIN varazdin@triglav-osiguranje.hr Alojzija Stepinca 7, HR Varaždin phone: / fax / ZADAR zadar@triglav-osiguranje.hr Obala kneza Branimira 9, HR Zadar phone: / fax / ZAGREB zagreb@triglav-osiguranje.hr Republike Austrije 1, HR Zagreb phone: / fax / Ownership structure: Triglav INT d.d., Ljubljana Other 0.24 Chairman of the Management Board: Marin Matijaca, univ.spec.actuar.math Members of the Management Board: Josip Kereta (until 14 April 2014), Bernhard Melischnig, Jože Obersnel, Procurist Chairman of the Supervisory Board: Stanislav Vrtunski Employees as at 31 December : 554 Branches: 9 156

158 Insurance and Reinsurance Companies 0 1,500 3,000 4,500 6,000 7,500 9,000 10,500 12,000 13,500 15, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 1,940, ,448, , , ,364, ,055, , , ,436, ,601, ,314, ,727, ,417, ,447, ,284, ,265, , ,199, , , All Non-Life Life 36,828, ,383, ,102, ,596, TOTAL 45,931, ,980,

159 26 Insurance and Reinsurance Companies UNIQA osiguranje d.d. UNIQA osiguranje d.d Zagreb, Planinska 13A Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt-99/ of 3 June 1999, Court Register No. MBS Supervisory Authorisation: /07-30/02, of 11 October 2007 Transaction Account Number: Raiffeisenbank Austria d.d. Zagreb HR Non-Life Raiffeisenbank Austria d.d. Zagreb HR Life Ownership structure: legal persons with head office outside HR 100 (UNIQA International Versicherungs-Holding AG) Chairwoman of the Management Board: Saša Krbavac Members of the Management Board: Tatjana Račić-Žlibar, Luka Matošić Chairman of the Supervisory Board: Wolfgang Kindl, D.Sc. Employees as at 31 December : 363 Sales Offices:

160 Insurance and Reinsurance Companies 0 1,700 3,400 5,100 6,800 8,500 10,200 11,900 13,600 15,300 17, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 2,571, ,283, , ,265, ,656, ,383, , , ,045, ,278, ,264, ,793, , , , , , , All Non-Life Life 17,473, ,902, ,378, ,808, TOTAL 29,852, ,710,

161 37 Insurance and Reinsurance Companies VELEBIT osiguranje d.d. VELEBIT OSIGURANJE d.d Zagreb, Savska 144a Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt-07/ on 10 September 2007, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/36, of 23 August 2007 VELEBIT INSURANCE Co. Ltd. commenced insurance business on 1 January Transaction Account Number: Podravska banka d.d. HR Ownership structure: legal and natural persons with head office / residence in HR 100 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 : 208 Offices:

162 Insurance and Reinsurance Companies 0 1,000 2,000 3,000 4,000 5,000 6,000 7, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 317, , ,127, ,021, , , ,016, , ,757, ,201, , , , , , , All Non-Life Life 8,614, ,033, TOTAL 8,614, ,033,

163 38 Insurance and Reinsurance Companies VELEBIT životno osiguranje d.d. VELEBIT ŽIVOTNO OSIGURANJE d.d Zagreb, Savska 144a Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt-07/ of 10 September 2007, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/39, of 23 August 2007 VELEBIT LIFE INSURANCE Co Ltd commenced insurance business on 1 December Transaction Account Number: Podravska banka d.d. HR Ownership structure: legal and natural persons with head office / residence in HR 100 Chairman of the Management Board: Tibor Kralj Member of the Management Board: Kristina Cvitanović-Zorić Chairman of the Supervisory Board: Pavel Gojković Employees as at 31 December : 155 Branches: 2 Offices:

164 Insurance and Reinsurance Companies ,000 1,200 1,400 1,600 1,800 2,000 2, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses All Non-Life Life ,468, ,123, TOTAL 1,468, ,123,

165 21 Insurance and Reinsurance Companies Wiener osiguranje Vienna Insurance Group d.d. Wiener osiguranje Vienna Insurance Group d.d Zagreb, Slovenska ulica 24 Company Reg. No: MB Company ID No: OIB Phone +3851/ Fax +3851/ Company Registration: Commercial Court in Zagreb under Tt-95/ of 28 December 1995, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/16, of 6 December 2007 The takeover of Helios Vienna Insurance Group d.d. and change of corporate name to Wiener osiguranje Vienna Insurance Group d.d. za osiguranje was registered at the Commercial Court in Zagreb on 31 May under No. Tt-13/ Regional Centres RC RIJEKA/ISTRA RC DALMACIJA JUG RC DALMACIJA SJEVER RC ZAGREB JUG RC ZAGREB SJEVER RC SLAVONIJA RC VARAŽDIN A. K. Miošića 1, HR Pula phone: / fax / Osječka 46, HR Rijeka phone: / fax / Mažuranićevo šetalište 53a, HR Split phone: / fax / Poljička cesta 39, HR Split phone: / fax / Poljička 5, HR Zagreb phone: / fax / Slovenska ulica24, HR Zagreb phone: / fax / A. Reisnera 113a, HR Osijek phone: / fax / Pavlinska 5/II, HR Varaždin phone: / fax / Transaction Account Number: Erste & Steiermärkische Bank d.d. HR Non-Life Erste & Steiermärkische Bank d.d. HR Life Ownership structure: legal and natural persons with head office / residence in HR 0.64 legal persons with head office outside HR Chairman of the Management Board: Walter Leonhartsberger Member of the Management Board: Tamara Rendić, Jasminka Horvat Martinović Chairman of the Supervisory Board: Peter Höfinger Employees as at 31 December : 913 Branches: 7 Regional Centres Offices: 29 Agencies: 67 Sales Points:

166 Insurance and Reinsurance Companies 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Data for Wiener osiguranje Vienna Insurance Group d.d. comprises data relating to Helios Vienna Insurance Group d.d. and Kvarner Vienna Insurance Group d.d * Non-Life GWP includes co-insurance premiums amounting to 124 (relating to Helios Vienna Insurance Group d.d.) Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses 2,126, ,774, , , ,886, ,024, ,387, ,555, ,947, ,374, ,350, ,612, ,995, ,260, , , , , , All Non-Life Life 40,429, ,252, ,732, ,674, TOTAL 78,161, ,927,

167 45 Insurance and Reinsurance Companies Wüstenrot životno osiguranje d.d. Wüstenrot životno osiguranje d.d Zagreb, Heinzelova 33a Company Reg. No: MB Company ID No: OIB Phone / Fax / Company Registration: Commercial Court in Zagreb under Tt-11/ of 2 January, Court Register No. MBS Supervisory Authorisation: UP/I /07-30/63, of 5June 2008 Wüstenrot Life Insurance Co. Ltd. was granted supervisory authorisation to carry on life, accident and health insurance business on 27 October 2011 and commenced operating on 2. January Transaction Account Number: Hypo Alpe-Adria-Bank d.d. HR ; Hypo Alpe-Adria-Bank d.d. HR ; Hypo Alpe-Adria-Bank d.d. HR ; Privredna banka Zagreb d.d. HR ; Sberbank d.d. HR Ownership structure: legal persons with head office outside HR 100 Chairman of the Management Board: Igor Ðurić Member of the Management Board: Ðurđa Gojmerac Chairman of the Supervisory Board: Franz Meingast Employees as at 31 December :

168 Insurance and Reinsurance Companies ,200 1,600 2, Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses Life Gross Written Premium by Class INDEX 13/12 Accident Health Motor Casco Other Casco Property Motor TPL Other Liability Credit, Suretyship and Financial Loss Other Legal Expenses All Non-Life Life , ,017, TOTAL 900, ,017,

169 Insurance and Reinsurance Companies Hrvatski nuklearni Pool - GIU HRVATSKI NUKLEARNI POOL GIU Zagreb, Radnička cesta 40-5 Company Reg. No: MB Company ID No: OIB Members of the POOL as at 31 December : u Allianz Zagreb d.d. Phone / Fax / hrnukpool@hrnukpool.hr Company Registration: Commercial Court in Zagreb under Fi-7198/94, Court Register No. MBS u u u u Croatia Lloyd d.d. za reosiguranje Croatia osiguranje d.d. Generali osiguranje d.d. Triglav osiguranje d.d. 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 In accordance with the Memorandum of Association, the Members of the POOL jointly assume extraordinary risks with respect to the insurance, co-insurance and reinsurance of nuclear plants, i.e. domestic and foreign risks with regard to the exploitation of nuclear power for peacetime purposes. The POOL's Profit and Loss Account for : Total Income 2,252,247 Total Expenditure 2,245,992 Profit 6,255 Management: Nikola Rendić-Miočević, Manager Supervisory Board: Robert Stude, Chairman Employees as at 31 December : 4 168

170 Insurance and Reinsurance Companies POOL Capacity for CROATIA CROATIA LLOYD TRIGLAV ALLIANZ ZAGREB GENERALI Insurance - Reinsurance - Domestic Risks Foreign Risks 4,500, ,500, ,100, ,100, , , , , , , TOTAL 7,200, ,200,

171 170

172 The in

173 06 * On 31 May Helios VIG merged into Kvarner VIG that at the same time was re-named Wiener osiguranje Vienna Insurance Group Ltd. The in In, the Membership of the 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. 12. HOK osiguranje d.d. 13. Izvor osiguranje d.d. 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. and ERGO osiguranje d.d. was accepted to membership of the on 23 January ERGO osiguranje d.d. For 15 Members membership is obligatory according to the Compulsory Traffic Insurance Law and 5 Members - Agram Life, Croatia Lloyd Re, Croatia Health, Erste VIG and Merkur - were admitted to voluntary membership of the as the representative body of the insurance companies in Croatia seeking to advance the common interests of the insurance industry to the benefit of the entire insurance market. In, the continued to carry out its responsibilities in accordance with the Insurance Law (Official Gazette Narodne novine No. 151/2005, 87/2008, 82/2009, 54/, 94/2014) and the Compulsory Traffic Insurance Law (Official Gazette Narodne novine No. 151/2005, 36/2009, 75/2009, 76/) as well as the Statutes of the, performing the duties of the insurance association, the national Green Card Bureau and additional duties under international agreements relating to motor third party liability insurance, as well as its responsibilities related to the operation of the Guarantee Fund, the administration of Frontier Insurance and activities associated with the collection of insurance statistics and the operation of the Information Centre. Changes to the Statutes of the were made in to enable the formal establishment of the Compensation Body as required by the Motor Insurance Directive and to the Internal Regulations of the Guarantee Fund to provide for the use of the Guarantee Fund assets for the obligations of the Compensation Body under the MID Agreements. In addition to the mentioned responsibilities, the also performed activities related to the out-of-court settlement of disputes within the competence of the Insurance Ombudsman Office and the Mediation Centre. The scope of functions of the Croatian Insurance Bureau has been further expanded in 2009 with the Insurance Education Centre (CEDOH), established at the at the end of 2008 with a view to fostering the insurance business by improving the training and promoting higher competence levels of the insurance profession. In addition to its responsibilities according to the Statutes, the following activities of the in should be highlighted: Activities related to legislative developments impacting the insurance industry Within the process of the required EU harmonization before Croatia s accession to the EU in, the Insurance Law and the Compulsory Traffic Insurance Law (regulating the compulsory Motor, Aircraft and Motor Boat TPL and Accident insurance for passengers on public transport) needed amendments, although both Laws had already been to a large extent harmonized with the EU Directives, with the relevant EU 172

174 provisions effective as from 1st July. A working group comprising representatives of the Members was formed by decision of the Management Board of the Croatian Insurance Bureau to prepare Amendments to the Compulsory Traffic Insurance Law to be presented to the responsible Ministry of Finance as insurance industry input to improve the existing insurance legislation, in addition to the contribution of the and insurance industry representatives invited to the relevant working groups established at the Ministry of Finance at the beginning of. The Amendments of both Laws came into force on 1 July. The amendments to the Insurance Law primarily relate to the implementation of Directive 2010/78/EU (EIOPA) and 2009/138/EZ (Solvency II). The Law on Amendments to the Compulsory Traffic Insurance Law implemented the remaining provisions of the Motor Insurance Directive 2009/103/EC (regarding minimum amounts of cover, random insurance checks) and Commission Regulation (EU) No 285/2010 amending Regulation (EC) No 785/2004 on insurance requirements for air carriers and aircraft operators. As regards the MTPL market this means considerably higher statutory limits of liability: HRK42,750,000 for bodily injury and 8,550,000 for damage to property and the possibility of FOS / FOE operations. Certain practice related proposals of the Working Group set up at the have been accepted, the most important being limiting the annual exposure of the Guarantee Fund in case of insolvency to 0.5 of the MTPL market premium. From the consumers perspective, the Motor Insurance Directive holds important provisions regarding the protection of visiting motorists, victims of road accidents which take place outside their Member State of residence, that came into force upon Croatia s accession to the EU and enabled Croatian motorists to benefit from the socalled 4th MID or Protection of Visitors System in force in the EEA since For the this meant new responsibilities, as the Croatian Compulsory Traffic Insurance Law provides that the Croatian 4th MID Compensation Body and Information Centre are established within the. Our Members appointed claims representatives in every EEA country and we organized workshops to prepare our Membership for their new responsibilities within the framework of the 4th MID with a view to ensuring a smooth operation of the System in Croatia as from 1 July. The Law on Amendments to the Voluntary Health Insurance Law (May 2010) authorised the Croatian Health Insurance Institute (that manages the public health insurance system) to carry on voluntary additional health insurance - in direct contravention to Art. 6 of the Croatian Insurance Law providing that insurance business may be carried on by an insurance company that was granted supervisory authorization to write insurance business. In several meetings with representatives of the Croatian Institute for Health Insurance, the expressed concerns over the unlevel playing field emphasizing that by expanding their activities to providing additional health insurance cover the Institute would act in contravention of the competition rules. In view of the expected reform of the health system, the Croatian Insurance Bureau continues to lobby the Ministry of Health to create a level playing field. Activities aimed at reducing the number of uninsured vehicles Addressing the issue of uninsured vehicles is one of the most important ongoing projects of the. The project was launched at the end of 2009 when the initiated a massive national media campaign in co-operation with the responsible Ministry of the Interior to inform the public about the consequences of uninsured driving. The Stop Uninsured Driving campaign aims to increase public interest in the high level of uninsured driving and to remind irresponsible keepers not renewing their MTPL insurance of the consequences and consequently to reduce the cost of uninsured driving to all insurers and ultimately all insured drivers, with positive effects expected also for a number of other subjects: public funds and institutions including the State revenues. This primarily educational media campaign together with intensified police efforts and other measures introduced through the Information Centre at the proved to be efficient in reducing the level and impact of uninsured driving in Croatia as recent figures show a significant decrease in uninsured claims since the beginning of the Campaign (535 claims reported in compared to 2,047 claims reported in 2008). Insurance Fraud Although one of the key issues of the last couple of years, insurance fraud first came into focus back in 2002 when the initiated the Agreement on Cooperation to Combat Motor Insurance Fraud and defined the ways to work together with the relevant authorities in a combined effort to combat fraudulent traffic accidents. In accordance with the Agreement, the developed a Central Database to maintain data on Motor Third Party and Casco claims submitted to insurance companies. The database has been expanded over the years to include further data to facilitate the detection of insurance fraud and modified to apply also to other insurance classes. At a Panel Discussion on Insurance Fraud held at the 18th Motor Insurance Claims Handling Seminar of the the establishment of a Working Group was initiated to bring together insurers and other stakeholders in order to ensure a fast and transparent exchange of relevant information to deter insurance fraud. The improved collaboration of the insurance industry with the police, the State Attorney s Office and the judiciary administration is necessary to fully support the police efforts in detecting insurance fraud attempts and to ensure a fast application of relevant laws in the sense of prosecuting fraudsters and confiscating property directly associated with the offence. In light of the fact that insurance fraud does not affect solely an individual insurance company or country, but rather is a matter of international concern, making it essential to facilitate a transparent and quick exchange of information between the state bodies of a region, the initiated an international co-operation resulting in the Protocol on Cooperation to Combat Insurance Fraud signed on 12th April 2011 in Zagreb by representatives of Insurance Associations of Bosnia-Herzegovina, Montenegro, Hungary, Macedonia, Slovenia, Serbia and Croatia. The Insurance Associations of the Czech Republic and Romania joined the Protocol on 1st September and 1st November 2011 respectively, the Austrian VVO at the beginning of, the Swiss National Bureau of Insurance in September and the National Bureau of Bulgarian Motor Insurers at the beginning of The Signatories of the Protocol undertake to cooperate and exchange information with a view to activities aimed at preventing insurance fraud at insurance association level, exchanging statistical and other accessible indicators showing different aspects of the existence and consequences of insurance fraud in home insurance markets, systems of detection and prevention of insurance fraud developed and utilized by the Insurance Associations and their Member Companies and the development and application of provisions of national legislations dealing with insurance fraud issues and the 173

175 existing case law. In accordance with national data protection provisions, the Signatories assist each other regarding requests for relevant information regarding a potential case bydirecting enquiries to the relevant State, judicial and other bodies for data collection purposes, establishing communication with their own Members (insurance companies), instructing on the relevant laws and provisions of the particular State, organising regular meetings to exchange information on their activities and sharing expert knowledge, experiences and good practices concerning insurance fraud prevention. Other countries of the region have also been invited to join the Protocol that was presented as an example of good practice at the Fraud Workshop organised on the occasion of the General Assembly of the Council of Bureaux in Dubrovnik. As a step further in its efforts to tackle fraud, the also joined the International Convention for the Recovery of Stolen Vehicles ICRV in May. Solvency II The has taken an active role in the preparations of its Members for the implementation of the new regulatory regime by initiating a co-operation with the Croatian Financial Services Supervisory Agency and the Croatian Actuarial Association resulting in a joint Solvency II Working Group. Within the framework of the Solvency II implementation in the Republic of Croatia, the Croatian Financial Services Supervisory Agency decided in co-operation with the Solvency II Working Group to run a QIS exercise based on QIS 5 methodology in the period between October 2011 and May. 25 insurance companies representing 99.7 of the GWP took part. The results published in February proved the robustness and solid solvency of Croatian insurance market. In effort to support its Members, the continuously informs its Members on news and developments at European level.solvency II continues to be one of the key issues for the. Financial Education The Croatian insurance industry recognises the importance of financial education to improve the understanding of financial products and to enable consumers to make appropriate choices and informed decisions. Against this background and as a step further towards higher consumer protection standards, the launched the Project Financial Literacy in 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 Government supported the initiative and mandated the Ministry of Finance to develop a National Strategic Financial Education Framework in co-operation with the relevant Ministries and other stakeholders. A Draft National Framework was presented in February. The will continue to support the initiative based on good practices and experiences of other European insurance associations, Members of Insurance Europe. The plans to strengthenits activities on emphasizing the role of the insurance industry as institutional investors and important stakeholders in the pension reform, providing the necessary expertise based on experience in life insurance, as well as activities aimed at securing a level-playing field to its Members and creating a uniform fiscal incentive policy encouraging (and defining) long-term voluntary pension savings. Other important activities in by areas of competence of the Croatian Insurance Bureau may be summarised as follows: As common insurance industry voice at international level, the Croatian Insurance Bureau is a Member of the Council of Bureaux - CoB, the European (re)insurance federation Insurance Europe, the International Union of Marine Insurance IUMI and represents the Croatian insurance industry also before other international insurance organisations. During the year, the Bureau maintained its close relationships with the CoB, Insurance Europe, IUMI and their member insurance bureaux and associations - and represented the Croatian insurance industry at assemblies, conferences, seminars and meetings held abroad. In its capacity as National Green Card Bureau the is Member of the Council of Bureaux, the managing organisation of the Green Card System, encompassing 46 countries and introduced 60 years ago to facilitate the flow of cross border road traffic in Europe and guarantee the compensation of domestic victims of accidents caused by foreign motorists. Within the Council of Bureaux, the Croatian Insurance Bureau is Member of the Central European Bureaux Regional Group. Regional Groups have been established to ensure better representation of smaller markets within the System. The Central European Bureaux Group, comprising the national Bureaux of Austria, Belarus, Croatia, the Czech Republic, Hungary, Slovakia, Slovenia, Switzerland and Ukraine, meets twice a year to discuss matters of common interest aiming to reach a common position and co-ordinate further actions in CoB Committees and Working Groups. The works closely throughout the year with other National Bureaux to exchange information on issues related to the support of its Members regarding their activities within the framework of the Green Card System. As the MID Compensation Body and Information Centre are established within the pursuant to the Croatian Compulsory Traffic Insurance Law, the accession of the Republic of Croatia to the European Union meant new important responsibilities for the and for its Membersin order to enable Croatian motorists to benefit from the so-called 4th MID or Protection of Visitors System in force in the EEA since Therefore in the Croatian Insurance Bureau intensified its activities aimed at the preparation of the international claims departments of its Members for their new duties within the framework of the Protection of Visitors System with a view to ensuring a smooth operation of the System in Croatia as from 1 July. The website of the Croatian Insurance Bureau has been updated to include all necessary information for Croatian motorists visiting EEA Countries, including links to the webpages of the Information Centres of all Member Countries providing information on appointed claims representatives and, where available, links to online insurance enquiries. The EN and DE version of the website have been updated with a list of Claims Representatives appointed by Croatian MTPL Insurers in all EEA Member Countries (and CH). Online insurance enquiries are possible since As representative of all Croatian insurance companies at international level, the Croatian Insurance Bureau closely co-operates with other national Insurance Associations through the European umbrella association Insurance Europe (formerly CEA). As the European insurance and reinsurance federation, Insurance Europe represents through its 34 national 174

176 member associations more than 5,000 insurance and reinsurance companies. One of the main objectives of Insurance Europe is to present and promote the interests of European insurers, its activities mainly being focused on the exchange of information and the cooperation of the European insurance market, in view of representing their positions at European Union institutions and international organisations (WTO, OECD...). In light of Croatia s accession to the European Union, the intensified its co-operation with Insurance Europe and its member associations in order to obtain useful information and guidance regarding EU issues with a view to ensuring a smooth integration of the Croatian insurance market into the European insurance market to the benefit of its Members. Although being a full Member of Insurance Europe since 2007, after joining the EU the will be able to provide more active input for Insurance Europe s activities. The International Union of Marine Insurance (IUMI) is one of the oldest trade associations dating back to 1874, with over 45 Members on all five continents. IUMI was the first international association to accept Croatia into its Membership after the declaration of independence in ADR mechanisms are gaining in importance in Croatia and becoming more prominent among consumers of insurance products. The Mediation Centre at the Croatian Insurance Bureau was founded by decision of the Management Committee of the of 29th March 2007 and pursuant to the Insurance Lawand the Statutes of the with the objective of resolving insurance and claims related disputes arising out of insurance contracts and the law, in relation to the rights of the injured persons, the insured and the insurance companies. By founding the Mediation Centre, the Croatian insurance companies have expressed a common position that reflects their readiness to promote and the need to support the out-of-court settlement of disputes. Over the last year, the Mediation Centre, renowned for its quality of work and trusted for its trained mediators with substantial experience in mediation practice, has continued to establish itself in professional and judicial circles. The Mediation Centre at the has confirmed its reputation as a highly successful Mediation Centre. The considers it very important that the public be constantly informed about the mediation institution and the advantages of mediation as an alternative method of dispute resolution as opposed to long lasting and expensive litigated disputes. With a view to informing the public about the work of the Mediation Centre at the, the Centre was throughout the year promoted through press, radio and television coverage. Greater awareness of its activities is also being promoted through leaflets and posters of the Mediation Centre of the Croatian Insurance Bureau displayed at the Municipal and County Courts as well as in the premises of our Member Companies. Over the year, the Mediation Centre was presented at conferences and workshops. The Mediation Centre actively takes part in the activities of the Alternative Dispute Resolution Committee established at the Ministry of Justice in compliance with the Strategy of Reform of Administration of Justice. The Mediation Centre at the became Member of FIN-NET, the financial dispute resolution network of national out-of-court complaint schemes in the European Economic Area, in February Similar to other European countries, the Insurance Ombudsman Service was in 2007 established at the Insurance Association the, as an autonomous and independent dispute resolution body to facilitate the settlement of disputes between consumers and insurance companies with a view to supporting appropriate and workable conduct of business and consumer protection rules. In, the Ombudsman received less complaints from consumers who were not satisfied with the way the insurance companies proceeded compared to. The decline in the number of complaints referred to the Ombudsman, which is still relatively low compared to the number of insurance contracts and the total number of claims made, should be seen as a result of continued efforts of both the Ombudsman service and the insurance companies. The work of the Ombudsman Service has certainly contributed to achieving a higher standard of consumer protection in insurance disputes, but also to promoting good practices and fundamental standards of the insurance business, since the insurance companies are kept informed through circulars of the positions taken by the Ombudsman regarding the most common cases related to insurance companies failing to act in compliance with the provisions of the of Insurance and Reinsurance Business Ethics. As a step further towards higher consumer protection standards, the Croatian Insurance Bureau launched the Project Financial Literacy in the Republic of Croatia, an initiative of the Croatian insurance industry supported by the Ministry of Finance and approved by the Croatian Government. Following the initiative of the insurance companies, that indicated their strong need for continuous education and professional training of their staff, and in accordance with the Insurance Act and the Statutes of the Croatian Insurance Bureau, the Insurance Education Centre (CEDOH Centar za edukaciju djelatnika u osiguranju) was established at the end of 2008 at the, as part of its function as association of insurance companies seated in the Republic of Croatia. The Insurance Education Centre at the Croatian Insurance Bureau was established with a view to fostering the insurance profession and thereby enhancing the services of the insurance industry by promoting and providing expert and professional educational programmes across all insurance lines. The aims of the Insurance Education Centre shall be achieved by organising seminars, workshops and panel discussions as well as through co-operation with other institutions in Croatia and abroad (Croatian Financial Services Supervisory Agency, academic institutions, Insurance Europe, Council of Bureaux and others), by providing continuous basic and advanced level training for insurance employees as well as by preparing professional publications. The Management Board of the Croatian Insurance Bureau adopted at its 157 Meeting on 23 October 2009 the Internal Regulations of the Insurance Education Centre and decided upon the membership of the Technical Council responsible for developing and 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 insurance industry, a framework education programme for insurance employees was developed focussing on the core training of insurance apprentices, the training of insurance agents and brokers and specialist education. The Centre has established a cooperation with the Croatian Financial Services 175

177 Supervisory Agency and the Ministry of Finance whose employees regularly attend basic insurance training seminars organised by the Centre. In October it became Member of the European Financial Certification Organisation EFICERT. In, the Insurance Education Centre at the continued its publishing activities: compiled texts from lecturers of the basic training seminars have been published in the Textbook for students of the basic insurance seminar. The Insurance Education Centre organised two basic insurance training seminars and 14 specialist seminars in, including a new seminar launched in November to prepare candidates for the exam organised by the Croatian Financial Services Supervisory Agency and required to obtain authorisation to conduct insurance representation business or insurance and reinsurance brokerage business in Croatia. The Information Centre at the was established in 2003 and was already in 2010 prepared to meet the requirements of the EU MID, which was confirmed by the positive reaction to our membership request of more than 75 of the Signatories of the Agreement on the exchange of Information between Information Centres under Article 23 of Directive 2009/103/EC, enabling the Information Centre at the to become Signatory to this EEA Information Centres Structure on 4th November 2010, well ahead of Croatia s joining the EU. The Information Centre holds a MTPL Insurance Register of all vehicles registered in Croatia and is available at the website Online MTPL insurance enquiries are possible since The IC also maintains a database of shortened versions of police reports to facilitate and speed up the claims handling procedure of our Members transacting motor insurance. The IC was updated with a database of appointed Claims Representatives of Croatian MTPL Insurers in all EEA Member States (and CH) in accordance with the Motor Insurance 2009/103/EC. The Information Centre at the also operates a claims database aimed at combating motor insurance fraud by giving our Members access to claims data in order to enable the detection of multiple and fraudulent motor insurance claims. Automated procedures have been implemented supporting the detection of potentially false policies as well as uninsured vehicles by cross-referencing data on MTPL policies collected from insurance companies with data supplied by the Ministry of the Interior. As from 2009 insurance companies are regularly receiving data enabling them to send notifications to their former insured whose insurance lapsed more than 30 days ago reminding them to renew their MTPL policy. At the initiative of its Members, the developed in cooperation with the Ministry of the Interior and the Vehicle Centre of Croatia a WEB service enabling the Members to issue on-line insurance certificates to their policyholders wishing to renew their MTPL insurance over the Internet. The certificates are accepted by the Authorities as proof of MTPL insurance to be presented at vehicle registration instead of the original MTPL Policy delivered by post. The activities in were focused on developing new projects within the Information Centre aimed at addressing the issue of uninsured vehicles and insurance fraud. The Croatian Insurance Statistics Project was initiated in 2007 with the aim of establishing a single national insurance statistics database including the development of a data collection system. In 2008, the developed a WEB service enabling communication with all insurance companies established in the Republic of Croatia and an application by means of which insurance companies update and supply data to the. Within the framework of the insurance statistics project, an internal application was developed to collect data on set parameters to enable the generation of monthly, quarterly and annual reports. Aside from the legal requirement to record and keep statistical data, the Croatian Insurance Bureau had from the outset of the statistics project a vision of a modern and easily expandable source of reliable data to the benefit of all insurance companies operating in the Croatian Insurance Market and other interested parties carrying out market research. In response to proposals of the Statistics Committee at the Croatian Insurance Bureau, the statistical system of the was for the first time expanded in 2009 to cover data relating to new life insurance and further in 2010 to include a new dataset on MTPL Insurance that will primarily serve as a reliable data source to actuaries creating new products and tariffs. The need for quality statistics was certainly one of the main reasons for nonmembers wishing to take part in the statistics project of the. As a result of these activities, the Croatian Insurance Bureau has established itself as the central national insurance statistics source accessible to the insurance industry since the beginning of 2008 and also available to the public through the website of the Croatian Insurance Bureau. The statistics project also enabled the to reply to statistics questionnaires and provide required data to the Council of Bureaux and Insurance Europe. During, the insurance companies received regular monthly and quarterly reports and, based on the data supplied by the insurance companies, the issued the edition of this annual report as well as a specialised publication covering statutory traffic insurance lines, with special regard to the Croatian MTPL Insurance Market. Monthly, quarterly and annual statistics reports are also available on the website of the Croatian Insurance Bureau. Throughout the year the Croatian Insurance Bureau maintained an active dialogue and continued to work closely on behalf of its Members with the Ministry of the Interior, the Ministry of Finance, the Ministry of Foreign Affairs and European Integration, the Ministry of Justice, the Ministry of Maritime Affairs, Transport and Infrastructure, the Ministry of Tourism, the Ministry of Health, the Croatian Health Insurance Institute, the Croatian Competition Agency, the Croatian Personal Data Protection Agency, the Croatian Financial Services Supervisory Agency, the Courts, the Insurers Association at the Croatian Chamber of Commerce, the Croatian Actuarial Association, the Croatian Employers Association, the Croatian Banking Association, the Croatian Bar Association, the Croatian Road Transport Association, the Vehicle Centre of Croatia and other stakeholders on addressing various issues of common concern to the insurance industry. The has, in addition to the aforementioned activities, throughout the year continued to perform its regular duties in administering the Guarantee Fund, responsibilities with regard to the statutory traffic insurance lines as well as activities related to the drafting of standard policy conditions for other statutory insurance classes, it represented the interests of Croatian insurers at European and international level to all relevant international institutions, and carried out further activities of common and mutual interest to the Croatian insurance industry. 176

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