March 2022 Monthly Report

Overview of supervised entities’ activities in the financial services sector for March 2022

PENSION FUNDS

SECOND PILLAR PENSION FUNDS

At the end of March 2022, mandatory pension funds (MPFs) had 2,122,402 members, i.e. 3,267 (0.15%) members more than in the previous month. Category B funds had 89.21% of all MPF members, while category A and category C funds had 7.14% and 3.05% of all MPF members respectively. Out of 4,049 new members, 3,898 (96.27%) were automatically assigned by Regos. Termination of membership due to retirement or death was recorded with respect to 782 insured persons. Total net contributions paid to MPFs in March amounted to HRK 664.7m or 4.78% more compared to the previous month. At the same time, total payments from all the MPFs due to personal account closures reached HRK 102.7m, dropping by 11.9% compared to February.

In March 2022, net assets of MPFs increased by HRK 2.1bn (1.64%) and stood at HRK 132.12bn at the end of the month. After a drop in February, monthly returns of Mirex A and B recovered slightly in March and increased by 2.21% for category A, 1.30% for category B and -0.03% for category C. Annual Mirex returns reached 6.48% for category A, 2.54% for category B and -2.13% for category C, while annualised returns since the beginning of MPFs’ operation reached 7.27% for Mirex A, 5.35% for Mirex B and 4.01% for Mirex C[1].

At the end of March, bond investments of MPFs totalled HRK 83.8bn (63.43% of total assets), making their share decrease by 0.92 p.p. on a monthly basis. The share of equity investments in MPFs’ assets decreased in March, by 0.68 p.p. on a monthly basis, amounting to HRK 27.8bn or 21.0% of MPFs’ assets. Investments in domestic shares accounted for 12.4%, while investments in foreign shares accounted for 8.6% of MPFs’ assets. Investments in investment funds amounted to HRK 15.7bn (11.86% of the assets) at end-March, making the proportion of these investments in total assets rise by 0.01 p.p. relative to the previous month. Investments in cash and deposits amounted to HRK 4.2bn (3.15% of the assets).

THIRD PILLAR PENSION FUNDS

In March 2022, the number of members of 8 open-ended voluntary pension funds (OVPFs) rose by 0.51% on a monthly basis, while the number of members of 20 closed-ended voluntary pension funds (CVPFs) decreased by 0.03%, making the number of members of these funds reach 357,470 and 46,022 respectively. Total monthly payments made to voluntary pension funds (VPFs) in March 2022 amounted to HRK 64.6m, decreasing by 0.11% compared to the previous month. Total payments made from these funds in March 2022 reached HRK 46.13m, rising by HRK 13.6m (41.81%) compared to February. Total payments from VPFs made due to retirement and other reasons accounted for 74.19%, payments made due to the change of fund reached 21.08%, while those made due to death accounted for 4.73% of total payments in March 2022. As regards total payments made due to retirement, the amount of HRK 16.33m (47.72%) was transferred for payment to pension insurance companies, HRK 11.44m (33.42%) was paid in the form of lump-sum payments, and HRK 6.46m (18.57%) was paid through a pension company (fund).

In March 2022, net assets of VPFs increased by HRK 102.2m (1.34% on a monthly basis) and stood at HRK 7.72bn. Monthly returns of VPFs ranged from -0.08% to 2.52%, while returns on an annual basis ranged from -2.87% to 5.20%. As regards the investment structure of VPFs, the largest part of the portfolio was made up of bonds and amounted to a 53.29% share in total net assets, followed by stocks with a 25.51% share and investment funds with a 11.34% share. The share of bonds in VPFs’ investments decreased on the monthly basis by 1.20 p.p., the share of investments in investment funds fell by 0.57 p.p., while equity share increased by 0.68 p.p.

INSURANCE COMPANIES

In March 2022, there were 15 insurance companies operating on the market. Their total gross written premium in the first three months of 2022 amounted to HRK 3.55bn, of which HRK 0.84bn (23.52%) related to life insurance premium and HRK 2.71bn (76.48%) to non-life insurance premium. Gross written premium in the first three months of 2022 increased by 9.02% relative to the same period in 2021, with the increase in non-life insurance premium totalling 9.86%, and the increase in life-insurance premium reaching 4.28%. The structure of the gross written premium in non-life insurance is dominated by motor vehicle liability insurance (27.76%), insurance of land vehicles (14.61%), insurance against fire and natural disasters (11.62%) and other property insurance lines (13.18%). The amount of claims settled in the first three months of 2022 reached HRK 1.88bn, increasing by 5.30% on an annual basis. HRK 0.81bn of this amount related to life insurance (a 6.96% increase on an annual basis), while HRK 1.07bn related to non-life insurance (a 4.07% rise on an annual basis). In the total amount of claims settled in non-life insurance in March, the largest amounts relate to motor vehicle liability insurance (40.55%), insurance of land motor vehicles (19.63%), insurance against fire and natural disasters (8.58%) and other property insurance lines (8.84%).

CAPITAL MARKET

In March 2022, the Zagreb Stock Exchange total turnover reached HRK 326.47m, decreasing slightly (by 0.77%) on a monthly basis. Market capitalisation increased by 1.18% relative to the previous month and stood at HRK 270.97bn, of which stocks amounted to HRK 139.92bn (51.64%), bonds to HRK 130.98bn (48.34%) and (0.02 %) ETFs to HRK 69.38m (0.02%). Unlike the end of February, when most of the equity and bond indices on the Zagreb Stock Exchange had negative signs, in March 2022 all stock indices grew, while the bond indices still retained a negative sign. At the end of March, the main stock index CROBEX recorded a monthly increase of 4.94%, just like CROBEXtr, while CROBEXtransport recorded the highest monthly increase of 11.96%. The main bond index CROBIS declined by -1.73%, and CROBEX10 declined by 1.52%. AD PLASTIK d.d. was the stock most traded in March, with its turnover amounting to HRK 26.3m (10.59% of the overall trade in stocks on the ZSE) and a -16.13% price decrease on a monthly basis.

INVESTMENT FUNDS

In March 2022, there were 95 UCITS operating on the market, with their total net assets amounting to HRK 18.08bn at the end of the month and decreasing by HRK 0.9bn or 4.70% compared to the previous month. Negative net outflows were recorded in March 2022 by all UCITS. Bond UCITS recorded net outflows reaching HRK -0.87bn, followed by balanced UCITS with HRK -42.44m and equity UCITS with net outflows of HRK -2.25m. Funds categorised as “other funds” and feeder UCITS recorded net outflows totalling HRK -90.33m and HRK -6.62m respectively. Bond funds’ net assets accounted for 67.8% of the total net assets of all UCITS at the end of March, while equity and balanced funds accounted for 12.3% and 7.0% of the total UCITS’ net assets respectively. Asset-weighted average monthly returns were positive for all categories of funds except bond funds, with their returns standing at -0.13%. Positive monthly returns were recorded by the following UCITS categories: equity funds (2.16%), balanced funds (1.08%), other funds (0.80%) and feeder funds (2.30%).

Net assets of the Fund for Croatian Homeland War Veterans and Members of their Families amounted to HRK 1.02bn (a 3.34% monthly increase), with the monthly return of the fund reaching 3.55%.

The full report is available at Publications/Monthly reports.

 

[1] Beginning of operation: MPF category B: 30/4/2002; MPFs category A and C: 21/08/2014