The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Insurance, Reinsurance And Pension Funding, Except Compulsory Social Security 65.11 - Life insurance
500 jobs Number of planned job losses
Announcement Date
23 September 2014
Employment effect (start)
1 October 2014
Foreseen end date
1 December 2014
Description
Insurance company Croatia osiguranje d.d. (Croatia Insurance) based in Zagreb is going to lay-off 500 employees.
Croatia osiguranje (CO) is the largest and oldest insurance firm in Croatia. Founded in 1884 in Zagreb as Croatia osiguravajuća zadruga (Croatia Insurance Society). The company until 2013 was still in public ownership and suffered from increased competition in substantially changed market circumstances. The Croatian government decided to put on sale up to 50% of its 82.48% stake in the company and to ensure recapitalisation through a new issue of shares.
In December 2013 the Government selected the binding offer of the Rovinj-based Adris Grupa for the part-acquisition of Croatia Osiguranje, as it offered HRK 905 million for 39.05% of the ordinary stock in the insurance company. The Rovinj-based group, specialised in the tobacco and tourism sectors, also offered EUR 110 million as an injection of fresh capital into Croatia osiguranje. Funds paid for recapitalization would strengthen Croatia Insurance, enable faster and more efficient restructuring of the company and possibility for the growth and development of CO in order to retain and strengthen its position as market leader in Croatia. The other binding bid was made by a leading Polish insurer, Powszechny Zaklad Ubezpieczen S.A. (PZU) that offered HRK 832 million for 44.27% of ordinary shares plus an injection of fresh capital in the amount of EUR 51 million.
Following the recapitalization Adris in CO has a 60 percent stake, while the Government remains with a share of 28 percent. The new management of Croatia osiguranje decided on September 22 2014 to initiate a collective lay-off procedure covering 500 employees. Some may be transferred to new functions while for others severance payment will be paid in accordance with the provisions of the collective agreement.
Sources
23 September 2014: Tportal.hr
Citation
Eurofound (2014), Croatia osiguranje d.d. (Croatia Insurance), Internal restructuring in Croatia, factsheet number 77581, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/77581.
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