In the first quarter of 2020, BTA Baltic Insurance Company AAS (hereinafter – BTA) maintained the volume of gross written premiums in the Baltics almost equal to last year’s amount, having even increased the volume in several types of insurance, which altogether amounts to 55.9 million euros, while the total disbursed insurance claims amounted to 34.4 million euros.
Altogether, BTA’s volume of gross written premiums in the Baltics amounted to 55.9 million euros. During the first three months of the year, BTA in Latvia and Estonia increased the volume of gross written premiums by 5.7% and 7.8% respectively, while in Lithuania, the volume decreased by 8.3%. Altogether, in Latvia, the volume of BTA’s gross written premiums reached 23.4 million euros, in Estonian 7.2 million euros, while in Lithuania – 25.2 million euros.
In the beginning of the year, in the Baltics, compulsory motor vehicle owners’ third party liability insurance (MTPL), CASCO and Health insurance types were marked by the largest volume of BTA gross written premiums and reached the total sums of 16 million euros (-12.2%), 13.3 million euros (-0.8%) and 11.6 million euros (+13.7%) respectively. Bond insurance demonstrated the most rapid growth of the volume of gross written premiums in the first quarter, wherein the total volume reached 2.5 million euros, which is by 53.5% higher than in the respective period of 2019.
In Latvia, during the first three months of 2020, the largest volume of BTA’s gross written premiums was demonstrated by Health, CASCO and MTPL insurance types and reached 9.8 million euros (+14.8%), 4.4 million euros (+0.2%) and 2.8 million euros (+16.8%) respectively. In Lithuania, MTPL was marked by the largest volume of gross written premiums, in total amounting to 10.9 million euros (-13.5%), CASCO amounted to 6.3 million euros (-5.7%), as well as property insurance amounting to 1.8 million euros (-5.8%) of gross written premiums. In Estonia, the best results in gross written premiums were demonstrated by CASCO of to 2.5 million euros (+12.1%), MTPL of 2.3 million euros (+1.6%) and Property insurance of 0.7 million euros (+11.5%).
As compared to the first quarter of 2019, this year BTA disbursed 33.4 million euros (-11.9%) in insurance indemnities. In Latvia, during the first three months, BTA disbursed 12.2 million euros altogether in insurance indemnities, which is by 34.5% less than in the same period last year, in Estonia it amounted to 7 million euros – by 6.4% less than last year, and in Lithuania the volume of disburse insurance indemnities amounted to 15.3 million euros, which is by 17.4 % higher than in the first quarter last year.
In the first quarter of 2020, in the Baltics, MTPL was marked by the largest volume of disbursed indemnities – 13 million euros (+11.6%) altogether. CASCO was ranked second most significant type, wherein 7.7 million euros (+1%) were disbursed in indemnities, while the Health insurance was ranked third amounting to 5.5 million euros (-0.7%) as the sum total of disbursed indemnities.
In Latvia, during the first quarter this year, the largest volume of indemnities was disbursed in Health insurance type amounting to 4.7 million euros (-4.9%), in MTPL amounting to 2.7 million euros (-3.8%) as the total volume of disbursed indemnities, as well as in CASCO insurance, wherein 2.6 million euros (-3.3%) were disbursed in insurance indemnities. In Lithuania, in the beginning of the year, the largest amount of disbursements made by BTA was demonstrated by MTPL – 8.8 million euros (+17.8%). While 3.2 million euros (+0.5%) were disbursed in indemnities for CASCO claims and 1.1 million euros (+56.7%) were disbursed for Property insurance claims. On the other hand, in Estonia the largest amount of disbursements was demonstrated by CASCO amounting to 1.8 million euros, which is by 8.5% higher than last year. Moreover, the volume of disbursed indemnities within Bond insurance increased manifold this year and reached 1.6 million euros, while 1.4 million euros were disbursed within MTPL, which is by 9.8% higher than in the first quarter of 2019.
In 2020, in the Baltics, BTA’s profit before tax of the first quarter amounted to 4.9 million euros. In Latvia, BTA’s profit before tax amounted to 2.2 million euros, in Lithuania – 1.5 million euros, while in Estonia it amounted to 1.1 million euros.
“Having operated in the state of emergency in the Baltic States for more than 2 months, currently, we have noticed that customers are slowly returning to satisfying their regular needs in the area of insurance. BTA investments in digital development, made previously, contributes to enjoying the benefit of reaching success throughout the Baltic States, and we intend to pursue it further on. We provide the customers with an opportunity both to receive all the required information on BTA policies and to develop their policy remotely by means of various communication channels, as well as to make their insurance claims, which ensures that customers are able to do it without even leaving the house. BTA mobile application demonstrates an increased demand and several of our corporate customers chose to provide their employees with Health insurance cards in electronic format only. It brings us the genuine satisfaction of being able to help our customers getting digitally advanced and thus we encourage their being environmentally friendly. However, in the times of coronavirus, we encourage you to remember about supporting the least protected members of society, therefore, we promote our customers engagement in the charity campaign for the Parents’ House at the Children’s Hospital. The campaign demonstrate very good results and the donated funds will contribute to the further development of the project so that parents are able to regain their strength in the course of their offspring recovery.
As the governments across Europe and the Baltic States begin to lift the restrictions caused by the pandemic, we are looking forward and considering several scenarios for development of the economy and insurance market in the near future – ranging from a quick recovery to protracted economic downturn. However, we believe that the European economy will be able to overcome the shock of the coronavirus and return on track of economic recovery relatively quickly”, points out BTA Management Board Chairman Wolfgang Stockmeyer.
BTA Baltic Insurance Company is one of the leading insurance companies in the Baltics, offering the broadest range of non-life insurance services in Latvia, Lithuania and Estonia. BTA employs more than 1,000 employees in the Baltics. The largest shareholder of BTA is Vienna Insurance Group AG with close to 200 years of experience in the insurance business. With about 50 companies in 25 countries and more than 25,000 employees, Vienna Insurance Group is a clear market leader in its CEE markets. Vienna Insurance Group is the best-rated company of ATX, the leading index of Vienna Stock Exchange with a rating of A+ with stable outlook from Standard & Poor’s; its share is also listed on the Prague Stock Exchange.
Marketing and Public Relations Department Director
BTA Baltic Insurance Company AAS