"The rating reflects Crosig's strong company profile, very strong capitalisation and strong financial performance", the credit rating agency said in a press release.
Fitch regards the company's business profile as strong based on its leading market position and franchise in the Croatian insurance market. The group total assets reached EUR 1.8 billion at end-2023 and GWP totaled EUR 540 million in 2023. "Its operating scale is small in terms of our Insurance Criteria guidelines, but it has a market share of 26.6%, giving it significant pricing power", the credit rating agency explained.
Fitch's assessment of Crosig's capitalisation is driven by its group Solvency 2 (S2) ratio of 245%, up from 241% in 2022 and its Prism Global score of 'Extremely Strong' at end-2023.
Fitch expects Crosig to report a net income return on equity (ROE) of at least 8% for 2024. Net income in the first half of 2024 was EUR 33.6 million, up from EUR 30.4 million a year earlier, driven by an increase in the net insurance service result to EUR 18 million from EUR 14 million. The Fitch-calculated net combined ratio was strong at 95.2% in 2023, and 91.4% in 2022 and it does not expect the combined ratio to exceed 95% in 2024.
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