The rise in frequency of natural disasters resulted in growth in the amount of premium ceded from the non-life segment.

Thursday 4 July 2013, Amsterdam

The written premium of the Croatian reinsurance segment grew from HRK0.67 billion (US$132 million) in 2008 to HRK0.71 billion (US$133.5 million) in 2012, at a CAGR of 2.4%. Despite the deceleration in the country’s industry, the reinsurance segment grew, mainly supported by rising awareness, due to the increased frequency of natural disasters and expansion of ceded premiums, particularly from the non-life segment. The facultative reinsurance category accounted for 65.9% of the total reinsurance written premiums in 2012, while the treaty reinsurance category accounted for 1.6%. Over the next 5 years, improving economic fundamentals and tightening regulations will have a positive effect on the reinsurance segment.

The reinsurance segment managed to post an increase in gross premiums at a CAGR of 2.4% between 2008 and 2012. This rise in frequency of natural disasters resulted in growth in the amount of premium ceded from the non-life segment. Croatia is largely exposed to droughts, flood, forest fires and snowfalls. Rising awareness of the need for insurance is expected to support the growth of reinsurance over the next 5 years.

The facultative reinsurance category represented a segment share of 65.9% in 2012, and is expected to grow to 71.5% in 2017. Between 2008 and 2012, facultative reinsurance was the fastest growing category in the reinsurance segment growing at a CAGR of 5%, and is expected to accelerate further at a CAGR of 10.4% over the next 5 years. The nature of facultative contracts provides negotiating power for each set of separate insurance segments and categories, unlike treaty reinsurance where contracts cover a bundle of services. This provides facultative reinsurance with a major driver for growth.

The written premium of the industry is expected to grow from HRK9.3 billion (US$1.7 billion) in 2012 to HRK 11.3 billion (US$2.1 billion) in 2017, at a projected CAGR of 3.9%. The reinsurance segment will drive the overall growth of the industry over this period.


Target audience

• Insurance companies
• Suppliers to insurance companies.
• Contractor research organizations
• Trade body, academia or other industry observers
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