Croatia osiguranje (CROS) Q3 2024 earnings summary

Executive summary

• Total income from insurance contracts reached EUR 391.7m, up 12.3% year-over-year, with non-life insurance income at EUR 381.6m (+12.1%) and life insurance income at EUR 10.1m (+19.6%).

• Total expenditure from insurance contracts was EUR 356.3m, up 4.8% year-over-year; non-life expenditure EUR 350.3m (+4.4%), life expenditure EUR 6m (+33.3%).

• Net result from insurance contracts was EUR 26.6m, a 339% increase year-over-year; total net profit reached EUR 46.3m, up 43%.

• Total assets as of 30 September 2024 were EUR 1.8bn, down 1.1% from year-end 2023; insurance contract liabilities were EUR 865m, up 0.3%.

Financial highlights

• Profit for the period attributable to shareholders was EUR 46.3m, compared to EUR 32.3m in the prior year period.

• Earnings per share rose to EUR 109.9 from EUR 76.7 year-over-year.

• Net investment result for the period was EUR 47.7m, up from EUR 42.8m year-over-year.

• Cash flow from operating activities was EUR 123.5m, compared to negative EUR 84.5m in the prior year.

Outlook and guidance

• Regulatory changes in auto and health insurance, as well as fee adjustments, are impacting pricing across the sector.

• Insurers face rising costs due to a 15% minimum wage increase in 2025, likely leading to price adjustments or further digitization.

• Life insurance premiums are expected to grow, reversing the negative trend of the past two years.

• Capital adequacy is expected to remain above 200% throughout 2024.