The new company, in which CO has already invested EUR 3.25 million, will start operating on 1 June.
CO has invested nearly EUR 7 million in its life insurance company in Macedonia since 2005.
Speaking at the founding ceremony in Skopje on Wednesday, CO chief executive officer Hrvoje Vojkovic said he hoped the new company would generate an annual growth of between 7 and 10 percent in the next three years.
Macedonian Economy Minister Fatmir Besimi said that Macedonia and Croatia had traditionally good relations.
The investment of Croatia Osiguranje is yet another proof of Macedonia's attractiveness to foreign investors, the minister said.
The Croatian Ambassador to Skopje, Ivan Kujundzic, said that trade between the two countries was USD 400 million in 2008, with an average annual growth of 25 percent.