Net assets of mandatory pension funds increased by 429 million euros in November

Net assets of mandatory pension funds (OMF) at the end of November amounted to 19.7 billion euros, which is 429.1 million euros or 2.2 percent more compared to the previous month, according to the latest monthly report from the Croatian Financial Services Supervisory Agency (Hanfa).

At the end of November, OMFs had a total of 2,241,901 members, which is 6,822 members or 0.31 percent more compared to October of this year.

In November, OMFs recorded 8,933 new members, with the vast majority, 96.6 percent, automatically assigned by Regos (Central Registry of Insured Persons). Due to retirement or death, membership ceased for 2,111 insured persons in November this year.

In November, total net contributions paid into mandatory pension funds amounted to 110.3 million euros, while total amounts paid out upon the closure of personal accounts from all OMFs were 40 million euros, or 3.3 million euros less compared to the previous month.

According to Hanfa’s data from the end of November, nominal monthly returns of Mirex increased by 2.6 percent for category A, 1.9 percent for category B, and 1.1 percent for category C. Annual returns in category A increased by 11.3 percent, B by 6.6 percent, and 1.9 percent in category C. Positive annualized returns of Mirex since the start of OMF operations were also recorded in all categories, with Mirex A at seven percent, Mirex B at 5.1 percent, and Mirex C at 3.2 percent.

Bonds remained the dominant form of investment in the structure of OMFs at the end of November, with 12.5 billion euros and a share of 63.5 percent, although this share decreased by 0.8 percentage points on a monthly basis.

At the same time, the representation of investments in stocks in OMF assets increased by 0.3 percentage points, amounting to 4.3 billion euros, or 22 percent of OMF assets.

Among other forms of investment, investments in investment funds were the most represented, with 2.1 billion euros and a share of 10.9 percent across all mandatory pension funds, according to Hanfa’s data for the second pillar of pension savings (individual capitalized savings).

Net assets of voluntary pension funds increased by 32.2 million euros on a monthly basis

At the end of November, there were also eight open voluntary pension funds (ODMF) operating in Croatia, which had 390,674 members, and 21 closed voluntary pension funds (ZDMF), with 48,330 members.

Total monthly contributions to voluntary pension funds (DMF) amounted to 12.9 million euros, which is 44.4 percent more than the previous month. At the same time, total monthly payouts fell by 2.7 percent to 3.8 million euros.

Thus, net assets of DMFs in November amounted to 1.19 billion euros, which is an increase of 32.2 million euros or 2.8 percent on a monthly basis.

Insurance companies collected premiums of 1.6 billion euros in 11 months

In November 2023, a total of 14 insurance companies operated. The total collected premium in the first 11 months of 2023 amounted to 1.6 billion euros, of which 288 million euros related to life insurance premiums, and 1.3 billion euros to non-life insurance premiums.

In the structure of collected non-life insurance premiums, the most represented was liability insurance for the use of motor vehicles (35.8 percent), followed by motor vehicle insurance (18.2 percent) and fire and natural disaster insurance (9.1 percent).

The amount of settled claims in the first 11 months of this year amounted to one billion euros. Of this amount, life insurance accounted for 376.4 million euros, and non-life insurance for 659.9 million euros.

In the total amount of settled claims in non-life insurance, liability insurance for the use of motor vehicles accounted for 38.7 percent, motor vehicle insurance for 20.2 percent, and fire and natural disaster insurance for ten percent, as stated in Hanfa’s report.

Hanfa also reported that the total net assets of 113 UCITS funds (open investment funds with public offerings), which operated in Croatia in November, amounted to 2.1 billion euros at the end of the month, which is an increase of 35.8 million euros or 1.7 percent compared to the previous month.

The net assets of the Fund for Croatian Veterans of the Homeland War and their family members at the end of November amounted to 142.7 million euros, with a monthly growth of 0.2 percent, while the monthly return of the fund was 0.4 percent, according to Hanfa’s data.