The volume of gross insurance premiums written by BTA Baltic Insurance Company AAS (hereinafter - BTA) in total for the Baltic States in the first quarter of 2016 grew by 3.4%, reaching 31.3 million euros. Despite the increase by 10% in insurance indemnities paid by BTA, the profit of BTA in the first quarter reached 1.1 million euros.
Similar to last year, a positive trend remains also in the first quarter – the volume of gross insurance premiums in voluntary insurance types follows an upward trend in the Baltic countries. In the first quarter of year, BTA issued a total of gross insurance premiums voluntary types for 21.1 million euros, an increase by 5% as to the period year ago. The largest increase in the volume of gross written premiums BTA reached in CASCO (+14%), health insurance (+9%) and general liability insurance (+5%).
According to Jānis Lucaus, BTA Board Chairman, Latvian insurance sector remains at a very fierce competition: "Under the pressure of competition and market consolidation, the average Latvian insurance products price level has remained unchanged, while Lithuania and Estonia recorded a moderate rise in prices in accordance with the risk assessment and along with the rise in prices of related services, such as car repair shops and medical services. In some segments in Latvia even some drop in insurance product prices could be observed, in spite of many factors that could trigger a review of pricing policy, for instance, car repair shop fees in Latvia in the first quarter, compared to the corresponding period last year, have increased by 10-12%, medical institution service fees have increased by 4-6%, while the number of road accidents in Latvia has increased by 12%. In order to achieve positive financial results just as by now, BTA proceeds with working on balancing the insurance portfolio, deliberately reducing the share of MTPL and increasing the share of voluntary types of in the insurance portfolio."
In the first quarter of 2016, BTA disbursed 19.2 million euros in gross insurance indemnities paid, by 10% more than in the first quarter of 2015. The largest increase in the volume of gross indemnities paid was observed in CASCO (+11%) and MTPL (+6%). The increase in the volume of insurance indemnities paid in motor insurance has been due to the number of road accidents, which has grown in the winter season, as well as the rise in car repair shop service fees.
BTA is one of the largest indemnity payers in Baltics. Last year BTA has disbursed an average of 282 thousand euros each business day in insurance indemnities in the Baltic States, which makes it 35.4 thousand euros every working hour
AAS BTA Baltic Insurance Company was founded in 2014, after reorganisation of BTA Insurance Company SE, performing successful division of the company according to the geographical distribution of its business operations: Baltics and rest of Europe. BTA Insurance Company SE, being a mother company of AAS BTA Baltic Insurance Company, has been successfully operating on insurance market for more than 20 years, in 2009 becoming the third biggest insurer in 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 among 50 largest insurance companies in Central Europe.
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