After successful restructuring of business portfolio, in 2015 BTA Group companies – mother company BTA Insurance Company SE (BTA) and its subsidiary BTA Baltic Insurance Company (BTA Baltic) – have reached great results. Despite the increase of the total amount of insurance indemnities disbursements by 13%, the profit of BTA Group companies in 2015 has exceeded the profit of 2014, reaching eight million euros.
In 2015 BTA Group companies in Baltics and abroad have in total endorsed gross insurance premiums in the amount of 164.8 million euros, which in comparison with 2014 is 8% less. Such decrease in amount of endorsed insurance premiums is related to intentional strategy of the company to perform restructuring of the business portfolio, in order to lower the share of endorsed insurance premiums in the unprofitable insurance types. At the same period BTA Group companies in Baltics and abroad have in total disbursed insurance indemnities in the amount of 99.6 million euros, which is by 12.7% more than in 2014. So in 2015 BTA Group companies have been disbursing totally in average 398 thousand euros every workday, which is about 50 thousand euros every work hour.
Assessment BTA operation in Baltic states shows that in Latvia, Lithuania and Estonia the amount of endorsed insurance premiums in 2015 has reached the level of 2014. In 2015 BTA Group companies in Baltics have in total endorsed gross insurance premiums in the amount of 114.8 million euros. Upon evaluation of unaudited financial results in Baltics, divided by types of insurance products, it should be noted that the positive tendency remains – amount of endorsed insurance premiums in voluntary insurance types both in Baltics generally and in each country separately continues to grow. In 2015 the total amount of insurance premiums endorsed in voluntary insurance types in Baltics reached 74.3 million euros, which is by 4.4% more than in 2014. Substantial growth in the amount of endorsed insurance premiums in Baltic States is reached in private accident insurance (+18.9%), CASCO insurance (+7.6%) and property insurance (+6.9%).
In order to foster company’s profitability, last year the share of mandatory insurance product types, which cause losses, was intentionally decreased in the total amount of endorsed insurance premiums. The amount of BTA’s endorsed insurance premiums in Baltics in MTPL insurance type decreased in 2015 by 12%.
Last year BTA Group companies in Baltic States have disbursed insurance indemnities in total amount of 70.5 million euros, which is by 15.1% more than in 2014. Increase in the amount of indemnities in 2015 was caused by the growing number of traffic accidents, as well as increase in prices for car repair and medical services.
Despite the ascending volume of disbursed insurance indemnities, the successful reorganisation and purposeful restructuring of business portfolio has lead BTA Group companies in Baltic States to great results – profit from direct insurance operation has reached 7.6 million euros.
Jānis Lucaus, Chairman of Board of BTA Group companies: “Assessing the unaudited financial results of 2015, we can conclude that the fulfilled business strategy had been chosen correctly. On the market of Baltic States we intentionally chose to shift focus from increasing the total amount of endorsed insurance premiums to balancing the business portfolio, while also optimising administrative processes and operational costs. As a result we have reached one of the best combined ratio indicators (92.9%) among the leading companies on insurance market of Baltics, as well as have increased the profit from direct operation by 24%. We are glad that the amount of insurance premiums endorsed in voluntary insurance types is growing, which proves that people are becoming more aware of the essence of insurance and have better understanding of the necessity of insurance, and we hope that this positive tendency will only spread wider.
Speaking about BTA Baltic plans for 2016, we are going to activate operation in the field of corporate clients, offering competitive services, and will increase business volumes in Baltics in general, especially in Estonia, where we see a potential for market growth. We will continue to work on ensuring maximally efficient management processes, quick and qualitative decision-making in the company and will foster professional development of employees.
Along with the plans to attract an investor – Austrian insurer Vienna Insurance Group AG (VIG) – we will continue broadening the range of offered services. Retaining BTA brand, traditions and values, we will have a chance to gain, use and obtain greater international experience from a concern, which has the knowledge on the industry, formed during 190 years of operation.”
Being the only insurance company in Latvia, which is exporting financial services, in 2015 BTA continued the development of business beyond Baltic States. Offering insurance services in France, Poland, Germany, Spain and Italy, in 2015 BTA has endorsed insurance premiums in the amount of 50 million euros. The growth of the volume of endorsed insurance premiums in 2015 was reached in France in MTPL insurance type (by 53%) and CASCO insurance type (by 16%), in Spain in MTPL insurance type (by 13%) and in Poland in MTPL insurance type (by 2.2%). In total last year BTA has disbursed insurance indemnities in the amount of 29 million euros.
The insurance company BTA was founded in 1993, under its initial name JSC Baltijas Transporta apdrošināšana (Baltic Transport Insurance). During its initial operation in the sector of sea and air freight insurance, BTA soon proved itself as a universal insurance company which is able to offer the widest range of insurance services to its clients. Since year 2002, which is when BTA acquired the Lithuanian insurance company BTA Draudimas, BTA has been conducted targeted business also in other countries, such as Estonia, Germany, Spain, Poland, France, Italy, the United Kingdom. Initially, its fundamental principle of operation was Freedom of Services (FOS), whereas affiliates were established later on.
To enjoy the benefits offered by the European Union and facilitate business abroad, BTA became a European business in February 2011 and acquired its new name BTA Insurance Company SE.
BTA is the only Latvian insurance company which exports financial services and operates not only in the Baltic States. The international growth of BTA is proven by the TOP 500 of Central European Companies issued by the international auditor company Deloitte for year 2013, where BTA ranks 50th among the largest insurance companies in Central Europe. And after evaluation of 2014 results, in 2015 BTA is ranked among 25 best Latvian export brands and given the title The Red Jackets.
To facilitate more dynamic development of its business in Europe and structure its administrative resources and processes in line with the strategic lines of its business operations, the insurance company BTA Insurance Company SE launched a reorganisation plan in October 2014 to divide the company according to the geographical distribution of its business operations: Baltics and rest of Europe. As part of the reorganisation, the BTA subsidiary, AAS BTA Baltic Insurance Company was founded on 27 October 2014. Having completed the reorganisation and retained the current service portfolio, insurance services in Latvia, Lithuania, and Estonia are, starting from 1 July 2015, being offered by AAS BTA Baltic Insurance Company, whereas BTA Insurance Company SE continues market expansion in other European states.
In December 2015 AAS BTA Baltic Insurance Company concluded a contract about attraction of an investor – one of the leading insurers in Europe – Vienna Insurance Group AG (VIG). The deal shall be completed after receiving all the necessary permits from the authorities, supervising the operation of the industry, which might take place in the first six months of 2016.
Public Relations Manager
AAS BTA Baltic Insurance Company
Phone: +371 67025661, mobile: +371 27828796