CROATIA osiguranje gives up acquisition agreements in Bosnia & Herzegovina

25 January 2019 — Daniela GHETU
CROATIA osiguranje (CO) has announced on 23 January that both agreements concluded in June last year, to acquire through its Bosnian subsidiary the full ownership of the Bosnian Testing Center LLC and the CENTRAL INSURANCE company, are canceled.

The announcement was published on the company's website in accordance with the provisions of the Capital Market Act and Rules of the Zagreb Stock Exchange. CROATIA osiguranje provided no additional details regarding the reasons of this decision.

On June 28, 2018, Croatia Osiguranje has signed an agreement to acquire a 100% stake in Central Insurance dd and the Testing Group in Bosnia and Herzegovina, the purchase agreement being at that time only subject to required regulatory approval.

By taking Central Insurance and Testing Group, CROATIA osiguranje BiH aimed to increase its total market share to 13% and become a market leader with a strong potential for further growth in the Bosnian-Herzegovinian market. In 2017, CO BiH had EUR 25 million in insurance premiums with a market share of 7%, while Central Insurance completed the same year with GWP of EUR 14 million and a market share of 4%, ranking 10th. Both companies have demonstrated a continued trend of market share growth in 2018. The Testing Group annually has about 113,000 technical reviews, and in 2017 it has reached EUR 6.1 million in revenue and 16% of the market share in technical inspections in the Federation of Bosnia and Herzegovina.

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