CROATIA Osiguranje buys Central Securities Inc. and the Testing Group in Bosnia-Herzegovina

28 June 2018 — Daniela GHETU
On June 28, 2018, Croatia Osiguranje has signed an agreement to acquire a 100% stake in Central Insurance dd and the Testing Group in Bosnia and Herzegovina. The purchase agreement is subject to required regulatory approval.

By taking Central Insurance and Testing Group Croatia osiguranje BiH will increase its total market share to 13% and become a market leader with a strong potential for further growth in the Bosnian-Herzegovinian market. In 2017, CO BiH had EUR 25 million in insurance premiums with a market share of 7%, while Central Insurance completed the same year with GWP of EUR 14 million and a market share of 4%, ranking 10th. Both companies have demonstrated a the continued trend of market share growth in 2018. The Testing Group annually has about 113,000 technical reviews, and in 2017 it has reached EUR 6.1 million in revenue and 16% of the market share in technical inspections in the Federation of Bosnia and Herzegovina.

"With this acquisition Croatia Insurance Group strengthens its position as a regional leader taking over the leadership on the Bosnian-Herzegovinian market. Our business is gaining even broader territorial coverage with sales outlets across the FBIH, but also the largest network of technical inspection stations, thus becoming the leader in the number of technical inspections, approvals and testing of vehicles. Croatia's total market share in the Federation of Bosnia and Herzegovina will almost double, and synergies with its parent company make excellent predispositions for further growth, "said Damir VANDELIC, President of Croatia Insurance Board.

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