Adriatic Insurance achieved a net profit of 37.67 million kuna last year, which is 2.5 percent higher than in 2008, according to the company’s financial report published on the Zagreb Stock Exchange.
The total revenue of the company amounts to 714.09 million kuna, of which the gross written premium accounts for 661.06 million kuna. The remaining part of the revenue consists of financial income from loan placements, leases, and others. The total expenses of the company in 2009 amounted to 676.42 million kuna, while the expenditures for insured events (claims) constitute 50 percent of the written premium or 49 percent of total expenses. During the past year, 653,749 insurance policies were concluded, of which 326,225 policies relate to mandatory motor liability insurance. The company notes that the fourth quarter of last year, like the three previous ones, was influenced by the economic crisis that was present in both the insurance industry and other industries, particularly the automotive industry, which is closely linked to the realization of premium income from motor liability insurance, which in Adriatic Insurance constitutes 71 percent of the gross written premium. The overall market for non-life insurance experienced a decline in written gross premium of 2.9 percent. Given the negative results that the crisis has brought to the insurance industry, especially life insurance, the company believes that the decline in Adriatic Insurance’s premium is not so significant since non-life insurance still shows greater resilience to the crisis and lower sales volatility. (H)
