Croatia osiguranje (CROS) Q2 2024 earnings summary

Executive summary

• Total income from insurance contracts rose 13.7% year-over-year to EUR 251.3m, with non-life up 13.6% and life up 18.7%.

• Net profit increased 10.4% year-over-year to EUR 33.6m.

• Digital business premiums grew 40% year-over-year; digital brand LAQO also saw 40% premium growth.

• Acquisition of Poliklinika Marin Med expanded healthcare network to Dubrovnik, boosting healthcare revenue by 48%.

Financial highlights

• Total expenditure from insurance contracts increased 18.3% year-over-year to EUR 226.8m.

• Net result from insurance contracts was EUR 18.1m, up 29.6% year-over-year.

• Total assets as of 30 June 2024 were EUR 1.8bn, down 1.2% from year-end 2023.

• Liabilities from insurance contracts decreased 2.4% to EUR 841.6m since year-end 2023.

• Basic and diluted EPS for H1 2024 was EUR 79.7, up from EUR 72.2 in H1 2023.

Outlook and guidance

• Capital adequacy expected to remain above 200% in 2024.

• Only one further ECB and one FED rate cut expected in 2024; inflation remains a risk.

• Insurance market outlook influenced by geopolitical risks, climate change, and regulatory changes.

• Complementary health insurance prices may be adjusted due to legislative changes.