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Croatia osiguranje d.d.

Quarterly Report Apr 28, 2022

2087_10-q_2022-04-28_d5fa2519-0cb8-4e13-b163-df9389df69d1.pdf

Quarterly Report

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CONSOLIDATED UNAUDITED QUARTERLY REPORT, FOR THE PERIOD 1 January 2022 – 31 March 2022

Zagreb, April 2022

CONTENT

I. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 3
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 4
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) 6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 8
CONSOLIDATED STATEMENT OF CASH FLOWS
indirect method 9
II. QUARTERLY MANAGEMENT REPORT 10
III. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE
PERIOD I-III 2022 14
MANAGEMENT BOARD STATEMENT 25

I. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Annex 1
ISSUER'S GENERAL DATA
Reporting period:
1.1.2022
to
31.3.2022
Year:
2022
Quarter:
1
Quarterly financial statements
Issuer's home Member State code:
Registration number (MB):
03276147
HR
Entity's registration number
080051022
(MBS):
Personal identification number (OIB):
26187994862
74780000M0GHQ1VXJU20
LEI:
Institution code:
199
Name of the issuer:
CROATIA osiguranje d.d.
10 000
Postcode and town:
ZAGREB
Street and house number:
Vatroslava Jagića 33
E-mail address:
[email protected]
www.crosig.hr
Web address:
Number of employees
3688
(end of the reporting period):
Consolidated report:
KD
(KN-not consolidated/KD-consolidated)
KN
KD
Audited:
(RN-not audited/RD-audited)
RN
RN
RD
Names of subsidiaries (according to IFRS): Registered office:
MB:
CROATIA PREMIUM d.o.o.
CORE 1 d.o.o.
ZAGREB
01885880
ZAGREB
04570243
AUTO MAKSIMIR VOZILA d.o.o. ZAGREB
01804812
CROATIA OSIGURANJE DD MOSTAR
20097647
MILENIJUM OSIGURANJE A.D. BEOGRAD
7810318
CROATIA OSIGURANJE A.D. - ZA ŽIVOTNA OSIG.
CROATIA OSIGURANJE A.D. - ZA NEŽIVOTNA OSIG.
SKOPJE
05920922
SKOPJE
06479570
CROATIA OSIGURANJE MIROVINSKO DRUŠTVO D.O.O. ZAGREB
01731742
RAZNE USLUGE D.O.O. - U LIKVIDACIJI ZAGREB
01892037
CROATIA - TEHNIČKI PREGLEDI D.O.O. ZAGREB
01450930
PBZ CROATIA OSIGURANJE DD
CO ZDRAVLJE D.O.O.
ZAGREB
01583999
ZAGREB
04837550
STRMEC PROJEKT d.o.o. ZAGREB
02586649
AGROSERVIS STP d.o.o. VIROVITICA
01233033
ASTORIA d.o.o. ZAGREB
080339352
CO LOGISTIKA d.o.o. ZAGREB
081353961
Yes
No
Bookkeeping firm:
No
(Yes/No)
(name of the bookkeeping firm)
Contact person:
Jelena Matijević
(only name and surname of the contact person)
Telephone:
072 00 1884
[email protected]
E-mail address:
Audit firm:
(name of the audit firm)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (STATEMENT OF PROFIT OR LOSS)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(STATEMENT OF PROFIT OR LOSS)
For the period: 1.1.2022 - 31.3.2022
in HRK
Same period of the previous year Current year
Item ADP
code
Life Non-life Total Life Non-life Total
1 2 3 4 5(3+4) 6 7 8(6+7)
I Earned premiums (ADP 119 to 123) 118 137.792.523 603.843.029 741.635.552 167.621.653 635.122.130 802.743.783
1 Gross written premium 119 137.699.311 844.029.942 981.729.253 167.798.433 971.389.331 1.139.187.764
2 Value adjustment and charged premium value adjustment 120 0 2.269.291 2.269.291 0 4.002.734 4.002.734
3 Outward reinsurance premiums (-) 121 -44.310 -130.994.703 -131.039.013 -37.578 -156.254.012 -156.291.590
4 Change of gross provisions for unearned premiums (+/-) 122 182.877 -188.821.192 -188.638.315 -94.504 -269.656.131 -269.750.635
5 Change of provisions for unearned premiums, reinsurers' 123 -45.355 77.359.691 77.314.336 -44.698 85.640.208 85.595.510
share (+/-)
II Income from investments (ADP 125 to 131)
124 41.304.606 93.868.547 135.173.153 53.247.363 101.623.823 154.871.186
1 Income from branches, associates and joint ventures. 125 445.052 4.865.016 5.310.068 493.108 4.491.796 4.984.904
2 Income from investment in land and buildings 126 71.061 26.221.850 26.292.911 20.235 27.672.440 27.692.675
3 Interest income
4 Unrealised gains on investments
127
128
25.777.411
907.087
22.419.828
4.372.368
48.197.239
5.279.455
25.869.585
841.173
20.474.693
5.932.426
46.344.278
6.773.599
5 Realised gains on investments 129 1.863.165 18.049.795 19.912.960 3.776.652 22.231.757 26.008.409
6 Net positive exchange rate differences 130 12.126.995 9.633.659 21.760.654 22.245.713 14.712.292 36.958.005
7 Other income from investments 131 113.835 8.306.031 8.419.866 897 6.108.419 6.109.316
III Income from commissions and fees 132 477.546 2.867.773 3.345.319 389.349 10.907.331 11.296.680
IV Other insurance-technical income, net amount from
reinsurance
133 46.567 10.157.075 10.203.642 36.722 7.661.769 7.698.491
V Other income 134 49.494 34.590.346 34.639.840 75.778 39.534.679 39.610.457
VI Claims incurred, net (ADP 136 + 139) 135 -121.885.501 -267.396.767 -389.282.268 -143.495.029 -290.564.157 -434.059.186
1 Claims settled (ADP 137+138) 136 -125.692.658 -362.551.974 -488.244.632 -132.082.201 -331.954.621 -464.036.822
1.1 Gross amount (-) 137 -125.692.658 -394.589.772 -520.282.430 -132.082.201 -368.027.163 -500.109.364
1.2 Reinsurers' share (+)
2 Change in the provision for claims (+/-) (ADP 140+141)
138
139
0
3.807.157
32.037.798
95.155.207
32.037.798
98.962.364
0
-11.412.828
36.072.542
41.390.464
36.072.542
29.977.636
2.1 Gross amount 140 3.807.157 87.003.488 90.810.645 -11.412.828 45.828.981 34.416.153
2.3 Reinsurers' share 141 0 8.151.719 8.151.719 0 -4.438.517 -4.438.517
VII Change in mathematical provision and other technical 142 -32.203.790 -10.250.854 -42.454.644 -79.309.076 3.243.063 -76.066.013
provisions, net of reinsurance (ADP 143+146)
1 Change in mathematical provisions (+/-) (ADP 144+145)
1.1 Gross amount (-)
143
144
-32.203.790
-32.208.612
1.330.679
1.330.679
-30.873.111
-30.877.933
-79.309.076
-79.310.446
886.397
886.397
-78.422.679
-78.424.049
1.2 Reinsurers' share (+) 145 4.822 0 4.822 1.370 0 1.370
2 Change in other technical provisions, net of reinsurance
(+/-) (ADP 147+148)
146 0 -11.581.533 -11.581.533 0 2.356.666 2.356.666
2.1 Gross amount (-)
2.2 Reinsurers' share (+)
147
148
0
0
-11.581.533
0
-11.581.533
0
0
0
2.356.666
0
2.356.666
0
VIII Change of special provision for life assurance where
policyholders bear the investment risk, net of reinsurance
(+/-) (ADP 150+151)
149 2.958.057 0 2.958.057 42.777.298 0 42.777.298
1 Gross amount (-) 150 2.958.057 0 2.958.057 42.777.298 0 42.777.298
3 Reinsurers' share (+) 151 0 0 0 0 0 0
IX Cash payments for bonuses and rebates, net of
reinsurance (ADP 153+154)
152 0 -3.908.947 -3.908.947 0 -4.741.148 -4.741.148
153 0 -2.767.377 -2.767.377 0 -3.506.207 -3.506.207
1 Performance-dependent (bonuses)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (STATEMENT OF PROFIT OR LOSS) For the period: 1.1.2022 - 31.3.2022

For the period: 1.1.2022 - 31.3.2022
ADP Same period of the previous year Current year in HRK
Item code Life Non-life Total Life Non-life Total
1
X Operating expenses (business expenditures), net (ADP
2 3 4 5(3+4) 6 7 8(6+7)
156+160) 155 -16.498.820 -277.003.056 -293.501.876 -13.346.959 -302.760.095 -316.107.054
1 Acquisition costs (ADP 157 to 159) 156 -8.492.589 -142.867.885 -151.360.474 -6.214.617 -157.805.833 -164.020.450
1.1 Commission
1.2 Other acquisition costs
157
158
-2.875.066
-5.617.523
-79.078.235
-71.770.302
-81.953.301
-77.387.825
-3.433.729
-2.780.888
-100.525.837
-75.397.753
-103.959.566
-78.178.641
1.3 Change in deferred acquisition costs 159 0 7.980.652 7.980.652 0 18.117.757 18.117.757
2 Administration expenses (administrative costs) (ADP 161
to 163)
160 -8.006.231 -134.135.171 -142.141.402 -7.132.342 -144.954.262 -152.086.604
2.1 Depreciation 161 -847.801 -19.014.113 -19.861.914 -629.174 -22.357.816 -22.986.990
2.2 Salaries, taxes and contributions from/on salaries 162 -3.264.552 -45.831.208 -49.095.760 -2.819.930 -50.441.449 -53.261.379
2.3 Other administration expenses 163 -3.893.878 -69.289.850 -73.183.728 -3.683.238 -72.154.997 -75.838.235
XI Investment expenses (ADP 165 to 171)
1 Depreciation of land and buildings not occupied by an
164 -2.798.203 -24.917.490 -27.715.693 -3.406.175 -36.608.850 -40.015.025
undertaking for its own activities 165 0 0 0 0 0 0
2 Interest
3 Impairment of investments
166
167
-266.019
0
-2.344.340
-59.571
-2.610.359
-59.571
-155.197
0
-2.922.310
-2.174.163
-3.077.507
-2.174.163
4 Realised loss on investments 168 -705.769 -1.821.570 -2.527.339 -201.733 -1.491.466 -1.693.199
5 Unrealised loss on investments 169 -1.196.995 -8.948.173 -10.145.168 -2.550.878 -17.823.802 -20.374.680
6 Net negative exchange rate differences 170 0 0 0 0 0 0
7 Other investment expenses
XII Other technical expenses, net of reinsurance (ADP
171 -629.420 -11.743.836 -12.373.256 -498.367 -12.197.109 -12.695.476
173+174) 172 -1.080.487 -14.243.147 -15.323.634 -267.980 -14.993.328 -15.261.308
1 Expenses of preventive activities 173 0 -312.155 -312.155 0 -293.629 -293.629
2 Other technical expenses of insurance 174 -1.080.487 -13.930.992 -15.011.479 -267.980 -14.699.699 -14.967.679
XIII Other activities, including value adjustments 175 -3.576 -125.065 -128.641 -2.841 -10.371.979 -10.374.820
XIV Profit or loss for the accounting period before tax (+/-)
(ADP 118+124+132 to 135+142+149+152+155+164+172+175)
176 8.158.416 147.481.444 155.639.860 24.320.103 138.053.238 162.373.341
XV Profit or loss tax (ADP 178+179) 177 -1.394.380 -26.188.351 -27.582.731 -4.195.922 -24.517.589 -28.713.511
1 Current tax expense
2 Deferred tax expense (income)
178 -1.394.380
0
-26.235.700
47.349
-27.630.080
47.349
-4.195.922
0
-24.541.305
23.716
-28.737.227
23.716
XVI Profit or loss for the accounting period after tax (+/-) 179
(ADP 176+177) 180 6.764.036 121.293.093 128.057.129 20.124.181 113.535.649 133.659.830
1 Attributable to owners of the parent
2 Attributable to non-controlling interest
181
182
6.741.849
22.187
121.024.747
268.346
127.766.596
290.533
20.104.545
19.636
113.306.223
229.426
133.410.768
249.062
XVII TOTAL INCOME (ADP 118+124+132+133+134+179) 183 179.670.736 745.374.119 925.044.855 221.370.865 794.873.448 1.016.244.313
XVIII TOTAL EXPENSES (ADP
135+142+149+152+155+164+172+175+178)
184 -172.906.700 -624.081.026 -796.987.726 -201.246.684 -681.337.799 -882.584.483
IX Other comprehensive income (ADP 186 to 193) 185 -2.921.782 66.734.535 63.812.753 -104.721.246 -73.643.162 -178.364.408
1 Gains/losses arising from translation of financial
statements relating to foreign operations
186 687.982 884.244 1.572.226 867.803 1.212.627 2.080.430
2 Gains/losses arising from the revaluation of financial
assets available for sale
187 -5.507.824 80.124.129 74.616.305 -126.171.031 -92.826.009 -218.997.040
3 Gains/losses arising from the revaluation of land and
buildings occupied by an undertaking for its own activities
188 0 0 0 0 0 0
4 Gains/losses arising from the revaluation of other tangible
(other than land and property) and intangible assets
189 0 0 0 0 0 0
5 Effects of cash flow hedging instruments 190 0 0 0 0 0 0
6 Actuarial gains/losses on pension plans with defined 191 0 0 0 0 0 0
pensions
7 Share in other comprehensive income of associates
192 0 0 0 0 0 0
8 Income tax on other comprehensive income 193 1.898.060 -14.273.838 -12.375.778 20.581.982 17.970.220 38.552.202
XX Total comprehensive income (ADP 180 +185) 194 3.842.254 188.027.628 191.869.882 -84.597.065 39.892.487 -44.704.578
1 Attributable to owners of the parent 195 3.816.644 187.744.184 191.560.828 -84.623.122 39.653.198 -44.969.924
2 Attributable to non-controlling interests 196
197
25.610 283.444
0
309.054
0
26.057
0
239.289
0
265.346
0

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)

As at: 31.3.2022

Item ADP
code
Last day of the preceding business year At the reporting date of the current period in HRK
1 2 Life
3
Non-life
4
Total
5(3+4)
Life
6
Non-life
7
Total
8(6+7)
ASSETS
A) INTANGIBLE ASSETS (ADP 002 +003)
001 472.132 143.869.010 144.341.142 435.668 146.724.038 147.159.706
1 Goodwill 002 0 0 0 0 0 0
2 Other intangible assets 003 472.132 143.869.010 144.341.142 435.668 146.724.038 147.159.706
B) TANGIBLE ASSETS (ADP 005 to 007) 004 17.732.515 799.689.323 817.421.838 17.784.848 803.147.483 820.932.331
1 Land and buildings occupied by an undertaking for its own activities 005 13.689.938 402.155.214 415.845.152 13.748.566 403.784.794 417.533.360
2 Equipment 006 271.955 79.170.914 79.442.869 347.818 78.313.897 78.661.715
3 Other tangible assets and inventories 007 3.770.622 318.363.195 322.133.817 3.688.464 321.048.792 324.737.256
C) INVESTMENTS (ADP 009+010+014+033) 008 3.814.231.702 6.395.107.932 10.209.339.634 3.776.450.982 6.385.813.243 10.162.264.225
I Investments in land and buildings not occupied by an undertaking for its own
activities
009 1.287.178 1.070.658.666 1.071.945.844 1.297.368 1.068.486.386 1.069.783.754
II Investments in branches, associates and joint ventures (ADP 011 to 013) 010 0 72.411.760 72.411.760 0 64.946.019 64.946.019
1 Shares and holdings in branches 011 0 0 0 0 0 0
2 Shares and holdings in associates 012 0 4.778.185 4.778.185 0 5.290.396 5.290.396
3 Shares and holdings in joint ventures 013 0 67.633.575 67.633.575 0 59.655.623 59.655.623
III Financial assets (ADP 015+018+023+029) 014 3.812.944.524 5.252.037.506 9.064.982.030 3.775.153.614 5.252.380.838 9.027.534.452
1 Financial assets held to maturity (ADP 016+017) 015 1.279.408.121 1.128.479.246 2.407.887.367 1.294.126.988 1.146.386.921 2.440.513.909
1.1 Debt financial instruments 016 1.279.408.121 1.128.479.246 2.407.887.367 1.294.126.988 1.146.386.921 2.440.513.909
1.2 Other 017 0 0 0 0 0 0
2 Financial assets available for sale (ADP 019 to 022) 018 2.256.877.011 3.564.079.383 5.820.956.394 2.196.997.704 3.551.880.030 5.748.877.734
2.1 Equity financial instruments 78.874.762 794.171.621 873.046.383 88.181.020 838.775.311 926.956.331
2.2 Debt financial instruments 019
020
2.073.289.542 2.449.521.308 4.522.810.850 2.010.426.786 2.427.840.836 4.438.267.622
2.3 Units in investment funds 021 104.712.707 320.386.454 425.099.161 98.389.898 285.263.883 383.653.781
2.4 Other 022 0 0 0 0 0 0
3 Financial assets at fair value through statement of profit or loss (ADP 024 to 028) 023 5.183.476 50.361.276 55.544.752 10.401.579 60.498.013 70.899.592
3.1 Equity financial instruments 024 0 25.765.552 25.765.552 0 27.159.521 27.159.521
3.2 Debt financial instruments 025 0 0 0 0 0 0
3.3 Derivative financial instruments 026 309.553 2.723.833 3.033.386 161.538 1.782.085 1.943.623
3.4 Units in investment funds 027 4.873.923 21.871.891 26.745.814 10.240.041 31.556.407 41.796.448
3.5 Other 028 0 0 0 0 0 0
4 Loans and receivables (ADP 030 to 032) 029 271.475.916 509.117.601 780.593.517 273.627.343 493.615.874 767.243.217
4.1 Deposits with credit institutions 030 223.330.823 324.013.977 547.344.800 227.012.984 309.140.517 536.153.501
4.2 Loans 031 47.426.249 38.601.483 86.027.732 45.408.307 33.391.129 78.799.436
4.3 Other 032 718.844 146.502.141 147.220.985 1.206.052 151.084.228 152.290.280
IV Deposits with cedants 033 0 0 0 0 0 0
D) INVESTMENTS FOR THE ACCOUNT OF LIFE ASSURANCE POLICYHOLDERS WHO 034 376.481.979 0 376.481.979 326.470.581 0 326.470.581
BEAR THE INVESTMENT RISK
E) REINSURANCE AMOUNT IN TECHNICAL PROVISIONS (ADP 036 to 042)
035 164.115 348.954.558 349.118.673 121.387 430.335.779 430.457.166
1 Provisions for unearned premiums, reinsurance amount 036 143.488 81.788.923 81.932.411 99.389 167.504.888 167.604.277
2 Mathematical provision, reinsurance amount 037 20.627 0 20.627 21.998 0 21.998
3 Claims outstanding, reinsurance amount 038 0 267.041.716 267.041.716 0 262.706.169 262.706.169
4 Provisions for bonuses and rebates, reinsurance amount 039 0 123.919 123.919 0 124.722 124.722
5 Equalization provision, reinsurance amount 040 0 0 0 0 0 0
6 Other technical provisions, reinsurance amount 041 0 0 0 0 0 0
7 Special provisions for life assurance where policyholders bear the investment risk, 042 0 0 0 0 0 0
reinsurance amount
F) DEFERRED AND CURRENT TAX ASSETS (ADP 044 +045)
043 2.125.392 82.469.832 84.595.224 2.125.392 89.624.638 91.750.030
1 Deferred tax assets 044 2.125.392 70.777.210 72.902.602 2.125.392 70.857.912 72.983.304
2 Current tax assets 045 0 11.692.622 11.692.622 0 18.766.726 18.766.726
G) RECEIVABLES (ADP 047+050+051) 046 47.134.307 1.022.187.283 1.069.321.590 31.223.081 1.226.739.924 1.257.963.005
1 Receivables arising from insurance business (ADP 048+049) 047 233.896 583.556.745 583.790.641 233.896 814.874.726 815.108.622
1.1 From policyholders 048 0 583.444.369 583.444.369 0 814.390.493 814.390.493
1.2 From insurance agents or insurance brokers 049 233.896 112.376 346.272 233.896 484.233 718.129
2 Receivables arising from reinsurance business 050 128.630 150.534.850 150.663.480 752 108.022.664 108.023.416
3 Other receivables (ADP 052 to 054) 051 46.771.781 288.095.688 334.867.469 30.988.433 303.842.534 334.830.967
3.1 Receivables arising from other insurance operations 052 0 133.942.791 133.942.791 0 133.455.180 133.455.180
3.2 Receivables for investment income 053 386.389 140.639 527.028 359.449 124.008 483.457
3.3 Other receivables 054 46.385.392 154.012.258 200.397.650 30.628.984 170.263.346 200.892.330
H) OTHER ASSETS (ADP 056+060+061) 055 57.404.797 711.958.881 769.363.678 92.228.616 700.217.346 792.445.962
1 Cash at bank and in hand (ADP 057 to 059) 056 57.404.797 703.157.606 760.562.403 92.228.616 692.228.540 784.457.156
1.1 Funds in the business account 057 8.255.075 702.705.594 710.960.669 7.262.997 691.399.489 698.662.486
1.2 Funds in the account of assets covering mathematical provisions 058 49.148.673 0 49.148.673 84.964.847 0 84.964.847
1.3 Cash in hand 059 1.049 452.012 453.061 772 829.051 829.823
2 Fixed assets held for sale and termination of business operations 060 0 1.731.115 1.731.115 0 1.727.278 1.727.278
3 Other 061 0 7.070.160 7.070.160 0 6.261.528 6.261.528
I) PREPAYMENTS AND ACCRUED INCOME (ADP 063 to 065) 062 1.563.722 269.261.313 270.825.035 1.269.225 295.470.998 296.740.223
1 Deferred interest and rent 063 0 384.071 384.071 0 361.978 361.978
2 Deferred acquisition costs 064 0 236.929.796 236.929.796 0 255.357.050 255.357.050
3 Other prepayments and accrued income 065 1.563.722 31.947.446 33.511.168 1.269.225 39.751.970 41.021.195
066 4.317.310.661 9.773.498.132 14.090.808.793 4.248.109.780 10.078.073.449 14.326.183.229
J) TOTAL ASSETS (ADP 001+004+008+034+035+043+046+055+062) 3.574.696.796 3.873.315.285

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) As at: 31.3.2022

in HRK
Item ADP
code
Last day of the preceding business year At the reporting date of the current period
Life Non-life Total Life Non-life Total
1
LIABILITIES
2 3 4 5(3+4) 6 7 8(6+7)
A) CAPITAL AND RESERVES (ADP 069+072+073+077+081+084) 068 542.627.107 4.058.521.259 4.601.148.366 458.109.837 4.098.160.550 4.556.270.387
1 Subscribed capital (ADP 070 to 071)
1.1 Paid in capital - ordinary shares
069
070
44.288.720
44.288.720
545.037.080
545.037.080
589.325.800
589.325.800
44.288.720
44.288.720
545.037.080
545.037.080
589.325.800
589.325.800
1.2 Paid in capital - preference shares 071 0 0 0 0 0 0
2 Premium on shares issued (capital reserves)
3 Revaluation reserves (ADP 074 to 076)
072
073
0
147.476.155
681.482.525
548.957.110
681.482.525
696.433.265
0
42.748.488
681.482.525
474.878.409
681.482.525
517.626.897
3.1 Land and buildings 074 0 106.333.697 106.333.697 0 105.922.345 105.922.345
3.2 Financial assets available for sale 075 147.476.155 442.457.823 589.933.978 42.748.488 368.790.474 411.538.962
3.3 Other revaluation reserves
4 Reserves (ADP 078 to 080)
076
077
0
85.295.937
165.590
316.742.639
165.590
402.038.576
0
85.295.937
165.590
316.742.639
165.590
402.038.576
4.1 Legal reserves 078 2.214.436 27.864.354 30.078.790 2.214.436 27.864.354 30.078.790
4.2 Statutory reserve
4.3 Other reserves
079
080
7.581.501
75.500.000
139.638.499
149.239.786
147.220.000
224.739.786
7.581.501
75.500.000
139.638.499
149.239.786
147.220.000
224.739.786
5 Retained profit or loss brought forward (ADP 082 + 083) 081 252.230.964 1.617.294.890 1.869.525.854 265.672.147 1.966.713.674 2.232.385.821
5.1 Retained profit
5.2 Loss brought forward (-)
082
083
252.230.964
0
1.617.294.890
0
1.869.525.854
0
265.672.147
0
1.966.713.674
0
2.232.385.821
0
6 Profit or loss for the current accounting period (ADP 085+086) 084 13.335.331 349.007.015 362.342.346 20.104.545 113.306.223 133.410.768
6.1 Profit for the current accounting period 085 13.335.331 349.007.015 362.342.346 20.104.545 113.306.223 133.410.768
6.2 Loss for the current accounting period(-)
B) SUBORDINATE LIABILITIES
086
087
0
0
0
0
0
0
0
0
0
0
0
0
C) MINORITY INTEREST 088 821.750 9.349.523 10.171.273 850.946 9.310.283 10.161.229
D) TECHNICAL PROVISIONS (ADP 090 to 095)
1 Provisions for unearned premiums, gross amount
089
090
3.235.659.788
6.639.516
4.396.227.440
1.494.855.949
7.631.887.228
1.501.495.465
3.329.914.889
6.743.419
4.620.899.868
1.766.760.704
7.950.814.757
1.773.504.123
2 Mathematical provisions, gross amount 091 3.126.810.816 6.553.376 3.133.364.192 3.207.368.288 5.666.979 3.213.035.267
3 Claims outstanding, gross amount 092 102.209.456 2.847.892.563 2.950.102.019 113.676.932 2.803.842.734 2.917.519.666
4 Provisions for bonuses and rebates, gross amount
5 Equalization provision, gross amount
093
094
0
0
24.175.940
7.055.533
24.175.940
7.055.533
0
0
25.251.383
7.055.533
25.251.383
7.055.533
6 Other technical provisions, gross amount 095 0 15.694.079 15.694.079 2.126.250 12.322.535 14.448.785
E ) SPECIAL PROVISIONS FOR LIFE ASSURANCE WHERE POLICYHOLDERS BEAR
THE INVESTMENT RISK, gross amount
096 376.481.979 0 376.481.979 326.470.581 0 326.470.581
F) OTHER PROVISIONS (ADP 098 + 099) 097 4.397.636 66.183.483 70.581.119 4.090.708 55.622.598 59.713.306
1 Provisions for pensions and similar obligations 098 3.994.621 63.595.466 67.590.087 3.887.198 53.000.621 56.887.819
2 Other provisions
G) DEFERRED AND CURRENT TAX LIABILITIES (ADP 101 + 102)
099
100
403.015
30.065.787
2.588.017
192.016.345
2.991.032
222.082.132
203.510
12.444.619
2.621.977
189.258.396
2.825.487
201.703.015
1 Deferred tax liability 101 28.818.637 154.880.088 183.698.725 8.246.805 137.232.204 145.479.009
2 Current tax liability 102 1.247.150 37.136.257 38.383.407 4.197.814 52.026.192 56.224.006
H) DEPOSITS HELD UNDER BUSINESS CEDED
I) FINANCIAL LIABILITIES (ADP 105 to 107)
103
104
0
24.048.547
0
394.592.699
0
418.641.246
0
5.411.972
0
349.465.289
0
354.877.261
1 Loan liabilities 105 0 2.647.724 2.647.724 0 2.410.467 2.410.467
2 Liabilities for issued financial instruments
3 Other financial liabilities
106
107
0
24.048.547
0
391.944.975
0
415.993.522
0
5.411.972
0
347.054.822
0
352.466.794
J) OTHER LIABILITIES (ADP 109 to 112) 108 72.602.199 388.044.342 460.646.541 100.898.526 426.311.150 527.209.676
1 Liabilities from direct insurance business 109 2.592.849 101.831.575 104.424.424 5.282.856 121.299.662 126.582.518
2 Liabilities from coinsurance and reinsurance business
3 Liabilities for disposal and discontinued operations
110
111
18.567
0
116.272.399
11.819
116.290.966
11.819
18.803
0
154.266.342
13.204
154.285.145
13.204
4 Other liabilities 112 69.990.783 169.928.549 239.919.332 95.596.867 150.731.942 246.328.809
K) ACCRUALS AND DEFERRED INCOME (ADP 114+115) 113 30.605.868 268.563.041 299.168.909 9.917.702 329.045.315 338.963.017
1 Deferred reinsurance commission 114 0 8.988.308 8.988.308 0 15.892.797 15.892.797
2 Other accruals and deferred income 115 30.605.868 259.574.733 290.180.601 9.917.702 313.152.518 323.070.220
J) TOTAL LIABILITIES (ADP 068+087+088+089+096+097+100+103+104+108+113) 116 4.317.310.661 9.773.498.132
3.175.257.358
14.090.808.793
3.473.738.835
4.248.109.780
298.618.489
10.078.073.449
3.574.696.796
14.326.183.229
3.873.315.285

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period: 1.1.2022 - 31.3.2022

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period: 1.1.2022 - 31.3.2022
Attributable to owners of the parent in HRK
Item ADP
code
Paid in capital (ordinary and
preference shares)
Premium on shares issued Revaluation reserves Reserves (legal,
statutory, other)
Retained profit or loss
brought forward
Profit/loss for the year Total capital and reserves
(3 to 8)
Attributable to non-controlling
interest
Total capital and reserves
(9+10)
1 2 3 4 5 6 7 8 9 10 11
I Balance on the first day of the previous
business year
1 589.325.800 681.482.525 568.449.623 402.038.576 1.538.153.217 327.902.069 4.107.351.810 12.654.441 4.120.006.251
Change in accounting policies
Correction of errors from prior periods
2
3
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
II Balance on the first day of the previous 4 589.325.800 681.482.525 568.449.623 402.038.576 1.538.153.217 327.902.069 4.107.351.810 12.654.441 4.120.006.251
business year (restated)
III Comprehensive income or loss for the same
period of the previous year (ADP 006 + ADP
007)
5 0 0 130.012.326 0 0 362.342.346 492.354.672 417.356 492.772.028
Profit or loss for the period
2 Other comprehensive income or loss for the same
6 0 0 0 0 0 362.342.346 362.342.346 414.927 362.757.273
period of the previous year (ADP 008 to ADP 11) 7 0 0 130.012.326 0 0 0 130.012.326 2.429 130.014.755
Unrealised gains or losses on tangible assets (land
and buildings)
8 0 0 -3.889.180 0 0 0 -3.889.180 6.012 -3.883.168
Unrealised gains or losses on financial assets
available for sale
9 0 0 160.194.552 0 0 0 160.194.552 -6.985 160.187.567
Realised gains or losses on financial assets
available for sale
10 0 0 -25.615.096 0 0 0 -25.615.096 0 -25.615.096
Other changes in equity unrelated to owners 11 0 0 -677.950 0 0 0 -677.950 3.402 -674.548
IV Transactions with owners (previous period) 12 0 0 -2.028.684 0 331.372.637 -327.902.069 1.441.884 -2.900.524 -1.458.640
Increase/decrease in subscribed capital 13 0 0 0 0 0 0 0 0 0
Other contributions by owners
Payment of share in profit/dividend
14
15
0
0
0
0
0
0
0
0
1.131.514
0
0
0
1.131.514
0
-2.785.495
-134.972
-1.653.981
-134.972
Other distribution to owners 16 0 0 -2.028.684 0 330.241.123 -327.902.069 310.370 19.943 330.313
V Balance on the last day of the previous
business year reporting period
17 589.325.800 681.482.525 696.433.265 402.038.576 1.869.525.854 362.342.346 4.601.148.366 10.171.273 4.611.319.639
VI Balance on the first day of the current
business year
18 589.325.800 681.482.525 696.433.265 402.038.576 1.869.525.854 362.342.346 4.601.148.366 10.171.273 4.611.319.639
Change in accounting policies 19 0 0 0 0 0 0 0 0 0
Correction of errors from prior periods
VII Balance on the first day of the current
20
21
0
589.325.800
0
681.482.525
0
696.433.265
0
402.038.576
0
1.869.525.854
0
362.342.346
0
4.601.148.366
0
10.171.273
0
4.611.319.639
business year (restated)
VIII Comprehensive income or loss for the year 22 0 0 -178.380.692 0 0 133.410.768 -44.969.924 265.346 -44.704.578
Profit or loss for the period 23 0 0 0 0 0 133.410.768 133.410.768 249.062 133.659.830
Other comprehensive income or loss for the year 24 0 0 -178.380.692 0 0 0 -178.380.692 16.284 -178.364.408
Unrealised gains or losses on tangible assets (land
and buildings)
25 0 0 0 0 0 0 0 0 0
Unrealised gains or losses on financial assets
available for sale
26 0 0 -159.354.118 0 0 0 -159.354.118 -7.809 -159.361.927
Realised gains or losses on financial assets
available for sale
27 0 0 -21.082.911 0 0 0 -21.082.911 0 -21.082.911
Other changes in equity unrelated to owners 28 0 0 2.056.337 0 0 0 2.056.337 24.093 2.080.430
Transactions with owners (current period) 29 0 0 -425.676 0 362.859.967 -362.342.346 91.945 -275.390 -183.445
Increase/decrease in subscribed capital 30 0 0 0 0 0 0 0 0 0
Other contributions by owners
Payment of share in profit/dividend
31
32
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-275.390
0
-275.390
Other transactions with owners 33
34
0
589.325.800
0
681.482.525
-425.676
517.626.897
0 362.859.967 -362.342.346 91.945 0 91.945

CONSOLIDATED STATEMENT OF CASH FLOWS – indirect method For the period: 1.1.2022 - 31.3.2022

CONSOLIDATED STATEMENT OF CASH FLOWS – indirect method
For the period: 1.1.2022 - 31.3.2022
in HRK
Item ADP
code
Same period of
the previous year
Current business period
1 2 3 4
I Cash flow from operating activities (ADP 002+013+031) 001 -90.600.684 52.594.806
1 Cash flow before changes in operating assets and liabilities (ADP 003+004) 002 123.995.228 128.031.481
1.1 Profit/loss before tax 003 155.639.860 162.373.341
1.2 Adjustments: (ADP 005 to 012) 004 -31.644.632 -34.341.860
1.2.1 Depreciation of property and equipment 005 13.738.350 15.768.422
1.2.2 Amortization of intangible assets 006 6.123.564 7.218.568
1.2.3 Impairment and gains/losses on fair valuation 007 -1.245.248 -9.864.479
1.2.4 Interest expenses 008 2.610.359 3.077.507
1.2.5 Interest income 009 -48.197.239 -46.344.278
1.2.6 Share in profit of associates 010 -2.803.967 -3.019.666
1.2.7 Profit/loss from the sale of tangible assets (including land and buildings) 011 -160.086 -696.013
1.2.8 Other adjustments 012 -1.710.365 -481.921
2 Increase/decrease in operating assets and liabilities (ADP 014 to 030) 013 -191.825.918 -58.761.230
2.1 Increase/decrease in financial assets available for sale 014 -291.735.923 -101.431.091
2.2 Increase/decrease in financial assets at fair value through statement of profit or loss 015 -13.839.521 -10.140.232
2.3 Increase/decrease in loans and receivables 016 106.699.037 -111.156
2.4 Increase/decrease in deposits with cedants 017 0 0
2.5 Increase/decrease in investments for the account of life assurance policyholders who bear the investment risk 018 -462.121 50.011.398
2.6 Increase/decrease in reinsurance amount in technical provisions 019 -85.748.272 -81.338.491
2.7 Increase/decrease in tax assets 020 -5.788.117 -7.131.089
2.8 Increase/decrease in receivables 021 -259.100.152 -186.919.013
2.9 Increase/decrease in other assets 022 0 0
2.10 Increase/decrease in prepayments and accrued income 023 22.810.532 -25.915.188
2.11 Increase/decrease in technical provisions 024 145.111.277 318.927.531
2.12 Increase/decrease in special provisions for life assurance where policyholders bear the investment risk 025 462.121 -50.011.398
2.13 Increase/decrease in tax liabilities 026 11.511.916 6.204.473
2.14 Increase/decrease in deposits held under reinsurance business ceded 027 0 0
2.15 Increase/decrease in financial liabilities 028 85.953.781 -66.121.008
2.16 Increase/decrease in other liabilities 029 60.862.949 55.419.934
2.17 Increase/decrease in accruals and deferred income 030 31.436.575 39.794.100
3 Income tax paid 031 -22.769.994 -16.675.445
II CASH FLOW FROM INVESTING ACTIVITIES (ADP 033 to 046) 032 -25.787.022 13.636.115
1 Cash receipts from the sale of tangible assets 033 20.755 382.591
2 Cash payments for the purchase of tangible assets 034 -3.874.735 -13.266.590
3 Cash receipts from the sale of intangible assets 035 0 0
4 Cash payments for the purchase of intangible assets 036 -22.564.456 -10.206.613
5 Cash receipts from the sale of land and buildings not occupied by an undertaking for its own activities 037 1.133.665 4.300.000
6 Cash payments for the purchase of land and buildings not occupied by an undertaking for its own activities 038 -448.027 -1.324.691
7 Increase/decrease of investments in branches, associates and joint ventures. 039 3.960.817 10.500.000
8 Cash receipts from financial assets held to maturity 040 37.209.504 37.397.628
9 Cash payments for financial assets held to maturity 041 -55.174.995 -37.272.288
10 Cash receipts from the sale of financial instruments 042 0 0
11 Cash payments for investments in financial instruments 043 0 0
12 Cash receipts from dividends and share in profit 044 1.533.750 1.965.237
13 Cash receipts from repayments of short-term and long-term loans given
14 Cash payments for short-term and long-term loans
045
046
17.727.498
-5.310.798
26.318.315
-5.157.474
III CASH FLOW FROM FINANCING ACTIVITIES (ADP 048 to 052) 047 -6.789.884 -6.190.632
1 Cash receipts resulting from the increase of initial capital 048 0 0
2 Cash receipts from short-term and long-term loans received 049 0 0
3 Cash payments for the repayment of short-term and long-term loans received 050 -6.646.496 -6.190.632
4 Cash payments for the redemption of treasury shares 051 0 0
5 Cash payments of share in profit (dividend) 052 -143.388 0
NET CASH FLOW (ADP 001 + 032 + 047) 053 -123.177.590 60.040.289
IV EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH AND CASH EQUIVALENTS 054 -21.760.654 -36.958.005
V NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (053+054) 055 -144.938.244 23.082.284
Cash and cash equivalents at the beginning of period 056 662.448.984 769.363.678

II. QUARTERLY MANAGEMENT REPORT

In the period observed, the CROATIA osiguranje Group, operating in Croatia and the markets of the region (BiH, North Macedonia, Serbia and Slovenia), achieved consolidated profit after tax and noncontrolling interest in the amount of HRK 133.4m, which represents an increase of 4.4 percent compared to the comparative period of the previous year.

Gross written premium for the reporting period amounted to 1,139.2m, which represents an increase of 16 percent compared to the comparative period of the previous year. Gross written premium of non-life insurance amounted to HRK 971,4m which represents an increase by 15.1 percent, while gross written premium of life insurance increased by 21.9 percent and amounted to HRK 167.8m.

Earned premium for the reporting period amounted to HRK 802.7m, which represents 79 percent of total income and an increase of 8.2 percent compared to the comparative period of the previous year.

In the non-life and life insurance business, the Group has achieved income from investments in the amount of HRK 154.9m, which represents an increase of 14.6 percent compared to the comparative period of the previous year. Income from investments represents 15.2 percent of total income. Investment expenses amounted to HRK 40m, which represents an increase of 44.4 percent compared to the comparative period of the previous year. Investment expenses represent 4.7 percent of total expenses.

Net claims incurred for the reporting period represent 50.8 percent of total expenses and amounted to HRK 434.1m, which represents an increase of 11.5 percent compared to the same period of the previous year, while claims settled amounted to HRK 464m, representing a decrease of 5 percent compared to the same period of the previous year.

Acquisition and administration costs amounted to HRK 316.1m, representing 37 percent of total expenses of the Group. Acquisition and administration costs increased by 7.7 percent compared to the comparative period of the previous year.

Total assets of the Group as at 31 March 2022 amounted to HRK 14.3 billion, representing an increase of 1.7 percent compared to 31 December 2021.

Technical reserves as at 31 March 2022 amounted to HRK 8 billion, representing an increase of 4.2 percent compared to 31 December 2021.

Unaudited consolidated financial statements for the first quarter of 2022 will be available on the web sites of CROATIA osiguranje d.d., Zagreb Stock Exchange and Officially appointed mechanism for the central storage of regulated information.

Significant business events in the reporting period

Approvals from the Croatian Financial Services Supervisory Agency to perform the functions of members of the Supervisory Board

In accordance with the Capital Market Act and the Rules of the Zagreb Stock Exchange, on 18 January 2022 CROATIA osiguranje held its General Assembly on which the Decision on the election of the members of the Supervisory Board CROATIA osiguranje d.d. was adopted. By the mentioned decision Roberto Škopac and Hrvoje Patajac were elected as members of the Supervisory Board of CROATIA osiguranje d.d. for a term of 4 years, starting from the 24 April 2022, subject to obtaining an approval to perform the function of a member of the Supervisory Board issued by the Croatian Financial Services Supervisory Agency. The Governing Board of the Croatian Financial Services Supervisory Agency (HANFA) held a session on 17 February 2022 and issued a decision approving Roberto Škopac and Hrvoje Patajac to perform the function of a member of the Supervisory Board of CROATIA osiguranje d.d. for a term starting from 24 April 2022 to 24 April 2026.

Employee representative to the Supervisory Board of CROATIA osiguranje d.d.

After elections for the employee representative to the Supervisory Board of CROATIA osiguranje d.d. for a member of the Supervisory Board of CROATIA osiguranje d.d. is elected employee Pero Kovačić from Zagreb, for a term of 4 years, starting from 10 March 2022.

Impact of the COVID-19 outbreak on the Group's operations

Due to the further course of the COVID-19 pandemic, the Group is continuously monitoring the situation and no significant negative impacts on the Group's operations have been identified in 2021, which is confirmed by the Group's results and high solvency ratio of the Group of 227% (as of 31 December 2021). Despite this, Group continues to assess the possible effects of pandemic on its operations. Negative financial effects caused directly by the COVID-19 pandemic could occur in the event of a new deterioration of the epidemiological situation if it would cause re-closures and reduction of economic activities. In addition, there are risks indirectly caused or triggered by the COVID-19 pandemic. This primarily refers to supply chain disruptions that continue to have negative impact on certain segments of economic activities as well as occurrence of increased inflation, which in the event of prolonged retention could have negative effects on the Group's operations if there is a significant decrease of consumer purchasing power. A negative impact could occur if there is a sharp increase in interest rates in financial markets, which could primarily be effected with the lower market valuations and decrease in value of financial instruments.

The mentioned effects of the pandemic impact could be realized in the future and therefore the Group will continue to have the special emphasis on monitoring the situation and taking timely measures to mitigate the potential negative consequences on its operations.

The Russian-Ukrainian crisis

The ongoing war in Ukraine and the related sanctions targeted against the Russian Federation may have impact on the European economies and globally. The Group has no direct operations in insurance and reinsurance business with Russia and Ukraine (nor with reinsurance companies, brokers, MGA agencies, etc.). In addition, reinsurance contracts through the Sanction & Embargo clause exempt reinsurance transactions with states under any sanctions and the terms of insurance on the direct side exclude war damage. The Group has an exposure to insurance policyholders who are members of certain companies (related to entities from Russia) and does not expect a significant adverse effect on the ability to collect these receivables in the short term, ie. as a direct consequence of the war in Ukraine. In case of collection

receivables inability, the Group can activate collateral instruments in the form of mortgage on real estate. The Group does not have direct business operations in Russia or Ukraine. However, the Group's certain investments are to some extent exposed to operations in Russia - investments in shares and investments in debt instruments of EU issuers that have a slightly more exposed part of operations in Russia. These exposures are not material in terms of business threats and given the size of the total investment portfolio. The aforementioned indirect exposures may have a negative impact on the Group's results in the event of escalation, which cannot be precisely quantified due to uncertainty and market volatility. However, based on the internal analysis of the impact of the Russian-Ukrainian crisis, as well as the sanctions imposed on Russia, the Group expects to maintain financial stability and a further high level of solvency (SCR ratio). In addition, at the date of these financial statements the Group continues to meet its obligations as they fall due and therefore continues to apply the going concern basis of preparation.

Significant events after the end of the reporting date

No events occurring after the reporting date were material to the financial statements for the reporting period.

Expected development in the future

Negative effects and trends are expected to increase in the future. In addition to the already present effect of delays in the delivery of new vehicles (waiting from six months to a year or more) due to the global problem in supply chains, there are also strong inflationary pressures. Rising prices of basic groceries, as well as energy prices (gas, oil) will reduce the amount of the household disposable income for essentials, which includes some insurance products such as voluntary insurance. The negative effects will be partially mitigated by the increase in the minimum wage in the Republic of Croatia as well as the pressure on wage growth in general, which will potentially affect the increased amount of claims due to rising labor costs and repairs that may lead to price corrections.

The potential rise in interest rates could revive the life insurance market, which has grown much slower in recent years due to the pandemic and low interest rates.

At the beginning of 2023, two major regulatory changes will take place: the introduction of the euro as the official currency of the Republic of Croatia and changes in the accounting standards for insurance companies (IFRS 17 and IFRS 9). Accordingly, 2022 will be a year of major IT investments and changes, which due to the state of available resources in the IT market will be a significant challenge for all insurance companies in the Republic of Croatia.

In the forthcoming period, the goal is to continue the best practice of transferring operational excellence from the parent to subsidiaries in the region, as well as help by the parent in the adoption on new accounting regulations (in those countries where it enters into force).

New sources of growth in the future are combinations of organic and acquisition activities. New acquisitions are aimed at strengthening the insurance business and further development of healthcare offering in addition to using the synergies arising from the insurance offer.

III. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD I-III 2022

1. GENERAL INFORMATION

The Group consolidated the following entities as at 31 March 2022:

31 March 2022
Shares Shares Shares held by
directly held by non
Activity held by the controlling
Group parent Group interests
(%) (%) (%)
Subsidiaries registered in Croatia which are
consolidated:
Croatia premium d.o.o., Zagreb Real estate business 100.00 100.00 -
M teh d.o.o.
-
Equipment rental 100.00 100.00 -
Core 1 d.o.o., Zagreb Real estate business 100.00 100.00
Razne usluge d.o.o. (u likvidaciji) - 100.00 100.00 -
AUTO MAKSIMIR VOZILA d.o.o. Insurance agency 100.00 100.00 -
CO LOGISTIKA d.o.o. Real estate business 100.00 100.00 -
Strmec projekt d.o.o Real estate business 100.00 100.00 -
CO Zdravlje d.o.o. Consulting and
services
100.00 100.00 -
-
CROATIA Poliklinika, Zagreb
Healthcare - 100.00 -
Croatia-Tehnički pregledi d.o.o., Zagreb MOT* 100.00 100.00 -
-
Herz d.d., Požega
MOT - 100.00 -
-
Slavonijatrans-Tehnički pregledi
d.o.o., Sl. Brod
MOT - 76.00 24.00
-
STP Pitomača, Pitomača
MOT - 100.00 -
-
STP Blato
MOT - 100.00 -
-
Autoprijevoz d.d.
MOT - 79.12 20.88
-
Crotehna d.o.o., Ljubuški
MOT - 100.00 -
-
Ponte d.o.o., Mostar
Insurance agency - 100.00 -
-
Skadenca d.o.o.,
Insurance agency - 100.00 -
Croatia osiguranje mirovinsko društvo
d.o.o., Zagreb Fund management 100.00 100.00 -
ASTORIA d.o.o. Real estate business 100.00 100.00 -
Subsidiaries registered abroad which are
consolidated
Milenijum osiguranje a.d.o., Beograd Insurance 100.00 100.00 -
Croatia osiguranje d.d., Mostar Insurance 97.12 97.12 2.88
Croatia remont d.d., Čapljina**
-
MOT - 69.79 30.21
-
Croauto d.o.o., Mostar
MOT - 66.79 33.21
-
Hotel Hum d.o.o., Ljubuški
Hospitality - 100.00 -
Croatia osiguranje d.d., non-life insurance
company, Skopje
Insurance 91.75 100.00 -
Croatia osiguranje d.d., life insurance
company, Skopje
Insurance 95.00 100.00 -

*MOT – Motor vehicle examination stations

** Crotehna d.o.o. additionally holds 9.27% in Croatia remont d.d.

In consolidation, the equity method is used for the valuation of investments in associates Agroservis - STP d.o.o., Virovitica (37%) and joint venture PBZ CROATIA osiguranje d.d. (50.0%).

The following is a summary of financial information for PBZ Croatia osiguranje d.d. for the last year for which the annual financial statements have been adopted and which have been presented for the Group using the equity method.

Summary statement of financial position 31 December 2021
in HRK'000
Financial assets 104,872
Other assets 36,203
Total assets 141,075
Liabilities 9,247
Capital and reserves 131,828
Total equity and liabilities 141,075
Summary financial information 31 December 2021
in HRK'000
Opening balance of net assets at 1 January 130,240
Profit for the period 21,389
Dividends (19,800)
Closing balance of net assets 131,829
Share in profit of joint venture @ 50% 65,914
Carrying amount 65,914

CROATIA osiguranje d.d., Zagreb, Vatroslava Jagića 33 (parent company) is registered in the Court Register of the Commercial Court in Zagreb, Republic of Croatia, under the Company's Court Reg. No. ("MBS") 080051022 and PIN ("OIB") 26187994862. The Company's principal activity is non-life and life insurance business together with activities that are related to insurance activities and reinsurance business in the non-life insurance segment. Among other important activities, the Group also carries out activities of pension fund management, technical examinations and providing medical services of clinics.

Croatia osiguranje d.d. is majorly owned by ADRIS GRUPE d.d., Rovinj and is included in the consolidated financial statements of ADRIS GRUPE d.d. which are available on the website of ADRIS GROUP d.d.

The average number of employees of the Group during the current period is 3,622.

Supervisory Board and Management Board

According to the Company Act, Insurance Act and the Articles of Association of the Company the Company's bodies are the General Assembly, the Supervisory Board and the Management Board. Obligations and responsibilities of the members of these bodies are determined by the mentioned acts.

Members of the Supervisory Board are:

Roberto Škopac President
Dr.sc. Željko Lovrinčević Vice President
Vitomir Palinec Member
Hrvoje Patajac Member
Vlasta Pavličević Member
Dr. sc. Zoran Barac Member
Pero Kovačić Member since 10 March 2022

Members of the Management Board are:

Davor Tomašković President
Robert Vučković Member
Luka Babić Member
Vančo Balen Member

Basis for preparation and consolidation

Financial statements are prepared in accordance with the Capital Market Act (Official Gazette 65/18, 17/20, 83/21), International Accounting Standard 34 – Interim Financial Reporting, Rules of the Zagreb Stock Exchange and the Ordinance on the contents and structure of issuers interim reports and on the form and manner of their submission to the Croatian Financial Services Supervisory Agency, which is issued by the Croatian Financial Services Supervisory Agency.

Quarterly financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31 December 2021. The Group's annual financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The Annual Financial Report for 2021, for the purpose of understanding the information published in the notes to the financial statements prepared for the first quarter of the 2022, is available on the company's official website, the official website of the Zagreb Stock Exchange and the Croatian Financial Services Supervisory Agency's Official Register.

Financial statements are prepared by using the accrual principle which is the underlying accounting assumption. Economic events are recognized when they occurred and are reported in financial statements for the period in which they occurred by using the underlying accounting principle of going concern.

Consolidated financial statements comprise the Company and its subsidiaries (together 'the Group'). All significant intragroup transactions and balances are eliminated.

Financial statements for the first quarter of the 2022 have not been audited.

Presentation currency

The Group's financial statements are prepared in Croatian kuna as presentation currency of the Group.

Use of estimates and judgements

Preparation of financial statements in conformity with IFRS requires the Management Board to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, and information available at the date of preparation of financial statements, the results of which form the basis of making the judgements about carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Changes of accounting estimates are recognised from the period in which an estimate is revised.

Accounting policies

Accounting policies and measurement methods which are used in the preparation of financial statements for the reporting period are the same as those which are used for preparation of the audited financial statements for the year 2021.

Related party transactions

There were no unusual related party transactions of goods and services in the current reporting period.

Seasonality of business activities

Group's operations are not seasonal. However, in the first part of the year, gross written premium and receivables for written premiums are higher than in the rest of the year due to dynamics of conclusion of insurance contracts.

Segment reporting

The Group's reporting segments comprise the life insurance segment and the non-life insurance segment. The description of segments as well as allocation of costs between segment of life insurance and non-life insurance, capital and reserves and assets described in the annual financial statements for 2021, have not changed. There were no significant intersegmental revenues and expenses in the period observed.

Earnings per share

1 January-31 1 January-31
March 2021 March 2022
in HRK in HRK
Profit for the year attributable to the Company's shareholders 127,766,596 133,410,768
Weighted average of ordinary shares 420,947 420,947
Earnings per share attributable to the Company's shareholders
Basic and diluted earnings per share in HRK 303.5 316.9

Fair value

Fair value is the amount that should be received for an asset sold or paid to settle a liability in an arm's length transaction between market participants at the value measurement date. Fair value is based on quoted market prices, where available. If market prices are not available, fair value is estimated by using discounted cash flow models or other appropriate pricing techniques. Changes in assumptions on which the estimates are based, including discount rates and estimated future cash flows, significantly affect the estimates. Therefore, at this point the estimated fair value cannot be certainly achieved from the sale of a financial instrument.

The fair value of investments at amortised cost is presented below:

31 March 2022 31 December 2021
Net book
value
Fair value Difference Net book
value
Fair value Difference
in HRK in HRK in HRK in HRK in HRK in HRK
Debt securities 2,440,513,909 2,464,885,655 24,371,746 2,407,887,367 2,610,989,562 203,102,195
Loans 215,989,716 216,408,142 418,426 229,748,717 230,316,307 567,590
Deposits 551,253,501 551,392,747 139,246 550,844,800 551,062,376 217,576
3,207,757,126 3,232,686,544 24,929,418 3,188,480,884 3,392,368,245 203,887,361

Methods of assessment or assumptions in determining fair value

For measuring the fair value, the Group takes into account the IFRS fair value hierarchy rules that reflect the significance of inputs used in the assessment process. Each instrument is assessed individually and in detail. The levels of the fair value hierarchy are determined on the basis of the lowest level and the input data that are important for determining the fair value of the instrument.

The table below analyses financial instruments carried at fair value using the valuation method. Different levels have been defined as follows:

Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices or interest rates information) or indirectly (that is, derived from prices or interest rates) (Level 2).

Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

The Group's assets measured at fair value as at 31 March 2022 are presented as follows:

Level 1 Level 2 Level 3 Total
in HRK in HRK in HRK in HRK
Property for own use - - 417,533,360 417,533,360
Investment property - - 1,069,783,754 1,069,783,754
Equity securities 768,490,756 150,466,808 7,998,767 926,956,331
Debt securities 3,258,534,863 1,178,113,603 1,619,156 4,438,267,622
Investment funds 100,853,464 282,741,120 59,197 383,653,781
Available-for-sale financial assets 4,127,879,083 1,611,321,531 9,677,120 5,748,877,734
Equity securities 27,159,521 - - 27,159,521
Debt securities - - - -
Investment funds 368,267,029 - - 368,267,029
Foreign currency forward contracts - 1,943,623 - 1,943,623
Financial assets at fair value through profit
or loss 395,426,550 1,943,623 - 397,370,173
Total assets at fair value 4,523,305,633 1,613,265,154 1,496,994,234 7,633,565,021

The Group's assets measured at fair value as at 31 December 2021 are presented as follows:

Level 1 Level 2 Level 3 Total
in HRK in HRK in HRK in HRK
Property for own use - - 415,845,152 415,845,152
Investment property - - 1,071,945,844 1,071,945,844
Equity securities 764,583,928 100,466,852 7,995,603 873,046,383
Debt securities 3,071,780,572 1,449,139,583 1,890,695 4,522,810,850
Investment funds 180,957,159 244,082,807 59,195 425,099,161
Available-for-sale financial assets 4,017,321,659 1,793,689,242 9,945,493 5,820,956,394
Equity securities 25,765,552 - - 25,765,552
Debt securities - - - -
Investment funds 403,227,793 - - 403,227,793
Foreign currency forward contracts - 3,033,386 - 3,033,386
Financial assets at fair value through profit
or loss
428,993,345 3,033,386 - 432,026,731
Total assets at fair value 4,446,315,004 1,796,722,628 1,497,736,489 7,740,774,121

The Group has adopted IFRS 13, pursuant to which it is required to disclose the fair value hierarchy of financial assets that are not measured at fair value as well as a description of valuation techniques and inputs used.

Financial liabilities are recorded at amortised cost. The Management Board believes that, due to fact that interest rate of these instruments is in line with market rates, the carrying value of these instruments is not significantly different from their fair value.

The fair value of deposits, loans and financial liabilities are estimated on the basis of inputs that are not commercially available rates, and are therefore classified as Level 3, or by using publicly available rates published by the Croatian national bank (for the Company's loans) and would therefore be classified as Level 2 in the fair value hierarchy. Investments with available market prices that are classified in the portfolio of held-to-maturity investments are classified as Level 1.

The fair values of cash and cash equivalents and insurance receivables and other receivables do not differ significantly from their carrying amounts due to the short-term nature of these financial instruments. Fair value is determined based on Level 2 inputs for cash and cash equivalents and based on Level 3 inputs for insurance receivables and other receivables.

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. The fair value of financial instruments that are classified as Level 3 is determined by using discontinued cash flow techniques or other valuation techniques by using relevant observable market data, information about current business and estimation of issuer's future business. There was no significant increase or decrease in the value of the parameters that would affect the change in the fair value of financial assets classified in Level 3 fair value.

There have been no significant reclassifications of financial assets at fair value through profit or loss from Level 1 and Level 2 to Level 3 and vice versa in statement of financial position.

The fair value of investment property is derived primarily by applying a sales comparison and income approach, and sometimes lacking information on market parameters by applying the cost method, depending on a particular property.

The fair value of the property for own use was carried out primarily by applying the income method.

The most significant inputs in the valuations were prices or rental income per square meter, generated based on comparable properties in the immediate vicinity and then adjusted by differences in key characteristics.

Information on measurements of the fair value of investment property using significant inputs that are not available on the market (Level 3) is published in the financial statements for 2021.

Intangible assets

In the period observed, intangible assets increased by HRK 2.8m, primarily due to additional investments in the new Core IT system. The Group capitalized the costs of net salaries in the amount of HRK 2m, the costs of contributions from salaries in the amount of HRK 0.6m, the costs of taxes and surcharges from salaries in the amount of HRK 0.3m, the costs of contributions to salaries in in the amount of HRK 0.4m and other employee costs in the amount of HRK 0.1m.

Financial assets and financial liabilities

The structure of financial assets as at 31 March 2022 and 31 December 2021 was as follows:

31 March 2022
Held-to
maturity
investments
Available
for-sale
financial
assets
Financial
assets at fair
value
through
profit or loss
- for trading
Loans and
receivables
Total
in HRK in HRK in HRK in HRK in HRK
Shares
Shares, listed - 860,257,475 27,159,521 - 887,416,996
Shares, not listed - 66,698,856 - - 66,698,856
- 926,956,331 27,159,521 - 954,115,852
Debt securities
Government bonds 2,376,164,447 3,775,361,627 - - 6,151,526,074
Corporate bonds 64,349,462 662,905,995 - - 727,255,457
2,440,513,909 4,438,267,622 - - 6,878,781,531
Derivative financial instruments
Foreign currency forward contracts - - 1,943,623 - 1,943,623
- - 1,943,623 - 1,943,623
Investment funds
Open-ended investment funds - 383,653,781 41,796,448 - 425,450,229
Open-ended investment funds - assets
for coverage of unit-linked products
- - 326,470,581 - 326,470,581
- 383,653,781 368,267,029 - 751,920,810
Loans and receivables
Deposits with credit institutions - - - 551,253,501 551,253,501
Loans - - - 215,989,716 215,989,716
- - - 767,243,217 767,243,217
2,440,513,909 5,748,877,734 397,370,173 767,243,217 9,354,005,033

31 December

2021
Held-to
maturity
investments
Available
for-sale
financial
assets
Financial
assets at fair
value
through
profit or loss
- for trading
Loans and
receivables
Total
in HRK in HRK in HRK in HRK in HRK
Shares
Shares, listed - 806,347,984 25,765,552 - 832,113,536
Shares, not listed - 66,698,399 - - 66,698,399
- 873,046,383 25,765,552 - 898,811,935
Debt securities
Government bonds 2,344,006,246 4,000,023,314 - - 6,344,029,560
Corporate bonds 63,881,121 522,787,536 - - 586,668,657
2,407,887,367 4,522,810,850 - - 6,930,698,217
Derivative financial instruments
Foreign currency forward contracts - - 3,033,386 - 3,033,386
- - 3,033,386 - 3,033,386
Investment funds
Open-ended investment funds
- 425,099,161 26,745,814 - 451,844,975
Open-ended investment funds - assets
for coverage of unit-linked products - - 376,481,979 - 376,481,979
- 425,099,161 403,227,793 - 828,326,954
Loans and receivables
Deposits with credit institutions - - - 550,844,800 550,844,800
Loans - - - 229,748,717 229,748,717
- - - 780,593,517 780,593,517
2,407,887,367 5,820,956,394 432,026,731 780,593,517 9,441,464,009

The structure of financial liabilities as at 31 March 2022 and 31 December 2021 was as follows:

31 March 2022 31 December 2021
in HRK in HRK
Lease liabilities 322,259,163 320,875,077
Liabilities for repo transactions - 76,481,325
Loan liabilities 2,410,467 2,647,724
Derivative financial instruments 17,913,019 5,987,102
Preference shares 12,250,000 12,250,000
Other financial liabilities 44,612 400,018
354,877,261 418,641,246

Share capital and shares

The Company's share capital with a nominal value of 601,575,800 as at 31 March 2022 is divided among 429.697 shares with a nominal value of HRK 1,400. The shares are marked as follows:

Number of shares Nominal amount:
307.598 ordinary shares I. emission with ticker CROS-R-A/CROS 430,637,200
113.349 ordinary shares II. emission with ticker CROS-R-A/CROS 158,688,600
TOTAL OF ORDINARY SHARES 589,325,800
8.750 preference shares I. emission with ticker CROS-P-A/CROS2 12,250,000
TOTAL OF PREFERENCE SHARES 12,250,000

Each share, ordinary and preference, provides the right to 1 (one) vote at the Company's General Assembly. Due to the guaranteed dividend payment, preference shares are classified as financial liabilities. All shares are paid in full, issued in dematerialized form, are transferable and are managed at the central depository of the Central Depository & Clearing Company. CROATIA osiguranje d.d. has no treasury shares.

Liabilities

The structure of liabilities as at 31 March 2022 and 31 December 2021 was as follows:

31 March 2022
No later than 1 year 1-5 years More than 5years Total
Other provisions 8,282,131 40,774,080 10,657,095 59,713,306
Financial liabilities
Liabilities arising from insurance
40,180,772 81,591,257 233,105,232 354,877,261
contracts, other liabilities and
deferred income
816,236,855 23,922,006 26,013,832 866,172,693
Total 864,699,758 146,287,343 269,776,159 1,280,763,260
31 December 2021
No later than 1 year 1-5 years More than 5years Total
Other provisions 13,369,039 46,382,641 10,829,439 70,581,119
Financial liabilities 106,827,432 76,455,463 235,358,351 418,641,246
Liabilities arising from insurance
contracts, other liabilities and
deferred income
719,758,884 26,022,288 14,034,278 759,815,450
Total 839,955,355 148,860,392 260,222,068 1,249,037,815

Deferred taxes

The Group has recognized deferred tax assets and liabilities as at 31 March 2022. There were no significant changes in deferred tax assets compared to 31 December 2021 while the movement of deferred tax liability is shown in the note below:

Land and Land and
buildings
occupied by
buildings not
occupied by Financial Other Total
an an assets
undertaking undertaking available
for its own for its own for sale
activities activities
in HRK in HRK in HRK in HRK in HRK
31 December 2021 22,098,310 33,219,941 127,895,184 485,290 183,698,725
Recognized deferred tax liabilities in
profit or loss
(91,945) - - - (91,945)
Recognized deferred tax liabilities in
profit or loss
- 419,632 - - 419,632
Utilization through profit or loss - - - - -
Change in fair value of available-for
sale investments through other - - (38,552,202) - (38,552,202)
comprehensive income
Foreign exchange differences - - 4,799 - 4,799
31 March 2022 22,006,365 33,639,573 89,347,781 485,290 145,479,009

Commitments

As at 31 March 2022, the Group's contractual obligations for future investments amount to HRK 394.5 based on binding bids for investments in alternative investment funds.

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