CO Group, 1H2016: The company's restructuring yields good results; 55% y-o-y increase in the net profit

8 September 2016 — Daniela GHETU
The CROATIA Osiguranje (CO) Group ended the first half of 2016 with GWP of HRK 1.8 billion, 1% up y-o-y, of which the parent company, leader of the Croatian insurance market, has accounted for HRK 1.6 billion, fairly meeting the underwriting volume achieved in the first half of 2015. CO Group's gross profit amounted to HEK 82 million, 44% up y-o-y, while the net profit amounted to HRK 62 million, 55% more y-o-y.

CROATIA osiguranje continues in the leading position on the Croatian market with a total share of 32.9% or 0.4% more than was achieved in the previous reporting period. With the stable percentage of 38.7%, it is the market leader in the non-life insurance segment. In the life insurance segment, it has also kept the leading position with the achieved market share of 20.6%, which is 1.2 percentage points above the first half of 2015.

Within the Group, there has been growth in the health insurance segment. The claims ratio of non-life insurance on the Group level was of 56.9%, i.e. 6.4 percentage points better than in the first half of the previous year. The combined ratio, as a key business efficiency indicator, is almost six percentage points better than last year, amounting to 102.7.

The positive shift seen in the results was driven, according to the Group's statements, by the restructuring process undertaken following the CO's acquiring by the ADRIS Group. "The company transformation continues with the aim of long-term sustainability and preservation and strengthening of the market position. In 2016, a series of projects were launched with the goal of developing products and services as well as increasing the availability to both the current and future clients. The optimisation of the damage processing continues. The organisation development project is aimed at increasing the company vitality; it encompasses the establishment of a work productivity stimulating and carrier planning management system," states the CO Group's press release.