ANALYSIS OF FINANCIAL PERFORMANCES OF ASSISTANCE INSURANCE IN THE REPUBLIC OF CROATIA.

The paper investigates the most important categories of revenue and expenditures in assistance insurance in the Republic of Croatia. An analysis of acquisition costs, settled claims, expenditures for insured events and annual premium was conducted in order to explore specificities in this type of insurance. By application of statistical and mathematical methods, the main characteristics of the analysed period and movement trends were formed and described. The most important revenues and expenditures were first analysed in relation to previous annual periods in order to illustrate performances of the analysed categories through annual movements. The shares of costs and expenses in the annual premium were analysed, which facilitated consideration of movement of acquisition costs, settled claims and expenditures for insured events in relation to the insurance premiums. After that, a trend analysis of insurance premiums, claims and acquisition costs was conducted. By testing the time movements through annual periods, the connections were explored, and annual movements described using representative trend models. By testing of the relationship between revenue and expenditure, correlation was explored between the movements of premiums and elements of acquisition costs and expenditures for insured events. The research results have been shaped into models which show the effect between analysed categories through time periods. Apart from proving that there are relationships in variables, which can be described through significant indicators and models, production of prognostic information is also enabled from the interrelationships in analysed variables. The upgrade on the obtained research results is the conduct of CVP analysis for calculation of the break-even point and planned profit in assistance insurance. The aim of the paper is reflected in the above stated, which is to research the movement and relationship between revenue and expenditure categories in assistance insurance in the Republic of Croatia and, based on the findings, to model mutual categories and altogether link them into a single whole for the creation of new prognostic information. Also, by implementation of the researched relationships between revenue and expenditure categories through the application of CVP analysis, the paper shows the development, the model and the application of the research results for widening of scientific knowledge about financial performances in assistance insurance in the Republic of Croatia. [ABSTRACT FROM AUTHOR]