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Analysis Of The Insurance Company Investment Portfolio In The Republic Of Croatia

Author

Listed:
  • Mirjana Hladika

    (Faculty of Economics and Business, University of Zagreb)

  • Marija Maric

Abstract

Insurance companies are very important institutional investors on the financial market. Importance of investment activities and the creation of investment portfolio arise from the core activities of insurance companies. This paper analyzes the structure of investment portfolio of insurance companies in the period from 2007 to 2012. Also, the paper analyzes the development and trends on the national and international insurance market. The research results show that in the period, marked by the global financial crisis, there was a reshuffling of investment in an investment portfolio. That followed as a result of more stringent regulatory requirements and restrictions in the creation of investment policy. The analyses showed that, in the period, investments in the safer financial instruments (government bonds and bank deposits) are increased and the investments in risky financial instruments such as stocks and shares in investment funds are reduced. In life insurance the largest part of investments is classified in the financial assets held to maturity and financial assets available for sale. Investment portfolio of non-life insurance is dominated by loans and receivables, while financial assets held to maturity and financial assets available for sale are equally represented. Finally, the conclusion is that the most of investment portfolio of the insurance companies is subsequently measured at amortized cost and the proportion of the investment portfolio, which is subsequently measured at fair value, is reduced.

Suggested Citation

  • Mirjana Hladika & Marija Maric, 2014. "Analysis Of The Insurance Company Investment Portfolio In The Republic Of Croatia," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 23(2), pages 509-540, december.
    • Handle: RePEc:avo:emipdu:v:23:y:2014:i:2:p:509-540
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    File URL: https://hrcak.srce.hr/clanak/193324
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    More about this item

    Keywords

    theories of portfolio management; regulatory restrictions and investment portfolio; life and non-life insurance; accounting treatment of financial assets; financial crisis; Croatia;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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