The volume of gross insurance premiums written by BTA Baltic Insurance Company AAS (hereinafter – BTA) in 2019 in the Baltic States, as compared to the same period in 2018, was marked by an overall increase of 3.7% and reached 216.0 million euros (according to MTPL reports). In 2019, there were 138.8 million euros disbursed altogether in BTA indemnities, which is by 18.2 % more than in 2018, while pre-tax profit in the Baltic States amounts to 11.7 million euros.
In the Baltic States, BTA volume of gross insurance written premiums in 2019 amounted to 216.0, which is by 3.7% more than in the same period of 2018. As of the total volume, in Latvia BTA gross written premiums amounted to 83.1 million euros, which is by 5.3% more than in 2018. In Lithuania, last year BTA gross written premiums amounted to 106.7 million euros, which is by 2.6% more than the previous year. While, In Estonia BTA gross written premiums increased by 2.8% and amounted to 26.3 % million euros.
In the Baltic States, in 2019, compulsory motor vehicle owners’ third party liability insurance (MTPL) was marked by the largest volume of BTA gross written premiums – 74.3 million euros, which is by 3.8% less than in 2018. Last year, CASCO insurance type was ranked second with 6.4% increase as compared to the data of 2018, wherein the volume of gross written premiums amounted to 52.1 million euros. While Property insurance showed the most significant growth; it is the third largest insurance type in BTA Baltic portfolio according to gross written premiums in 2019 – 28.9 million euros, which is by 12.1% more than in 2018.
Last year, Health insurance type made a significant amount of gross written premiums in BTA Latvia and reached 22.1 million euros, which is by 6.9% more than in the same period of 2018. In 2019, CASCO was the second largest insurance type in Latvia according to the volume of gross written premiums and amounted to 17.7 million euros (+4.3%), while the third largest – MTPL amounted to 14.1 million euros (-12.5%). The whole year showed a positive trend of growth in gross written premiums in Property insurance type (hereinafter – including technical engineering risks); therefore, it was marked by 24.1% growth and reached the amount of 15.5 million euros in BTA Latvia.
In BTA Lithuania, MTPL is the largest insurance type according to the volume of gross written premiums; it reached 52.2 million euros (-1.9%), then CASCO with the volume of 24.7 million euros (+9.5%) and Property insurance type with 10.2 million euros (+0.8%).
In BTA Estonia, CASCO insurance type showed the largest volume of gross written premiums, amounting to 9.6% (+2.6%), then MTPL with the volume of 7.9% euros (+0.7%) and Property insurance type with 3.3 million euros (+0.8%).
“In 2019, BTA operations showed several significant breakthroughs notwithstanding the fierce competition on the insurance market in the Baltic States. Upon development of technological solutions, advancement of internal processes, improvement of product price determination procedures, BTA reached considerable growth in the area of voluntary insurance and even outpaced the market growth rate, which allowed us to strengthen our market position and increase our market share in all the important insurance types of the three Baltic States, especially in Property and CASCO insurance. Currently, BTA is marked second in-between the largest insurance companies in Latvia and Lithuania, and our market shares are 19% and 16% respectively. While as for Estonian insurance market, which is clearly more segmented, BTA is steadily approaching the leading group in the market and is ranked sixth with the market share of 7%. Moreover, it should be noted that increase in number of customers by 3% has also contributed to BTA development. Last year, we were also engaged in development of both online and in-person sales channels, which is highly appreciated by our customers and cooperation partners,” explains BTA Management Board Chairman Wolfgang Stockmeyer.
In 2019, in the Baltics States BTA disbursed 138.8 million euros in indemnities, which is by 18.2% more than in the same period in 2018. MTPL insured events showed the largest amount of indemnity claims amounting to 47 million euros (+3.5%), then CASCO with 32.2 million euros (+10.2%), as well as Health insurance with 19.7 million euros (+21.3%).
Last year, Health insurance showed the largest amount of indemnity disbursements in BTA Latvia – 17.4 million euros (+19.9%). While the amount of insurance indemnities disbursed for the insured events within CASCO and MTPL insurance was almost the same – 10.9 million euros (-6.3%) and 10.8 million euros (-31.9%) respectively.
In Lithuania, the largest amount of indemnity disbursements was in MTPL insurance type – 30.6 million euros (+22%). Last year, in Lithuania BTA disbursed 14.1 million euros (+24.9%) in indemnities for CASCO insured events. Property insurance ranked as third largest type, wherein there were 5.0 million euros (+19.9%) disbursed in indemnities. While in Estonia, the largest number of claimed indemnities were disbursed in CASCO type – 7.2 million euros (+14.5%). In Estonia, 5.6 million euros (+25%) were disbursed for MTPL insured events, while Property insurance showed 7.2 million euros (+225.7%).
In the Baltic States, BTA pre-tax profit amounted to 11.7 million euros. In Latvia, BTA pre-tax profit amounted to 6.7 million euros, in Lithuania – 7 million euros, while in Estonia the losses altogether amounted to 1.9 million euros.
“In 2020 as well, BTA continues to search for new and innovative ways to meet the requirements of customers and cooperation partners for quick and convenient insurance services intended for daily use, simplifying internal processes, strengthening and diversifying insurance type portfolio, improving business processes in all area of expertise, enhancing customer service and developing online communication channels. This year, BTA draws particular attention to development of sales channels, resulting into the first step – publishing BTA Health insurance application, which provides customers with an opportunity to access easily limits granted thereto, as well to submit applications for insurance indemnities, which takes only 21 seconds to make a claim. Certainly, the spread of Coronavirus and the restricting measures imposed thereby took its toll on BTA plans. BTA has proven its flexibility and ability to quickly switch to online customer service in all areas by providing support to customers with all possible remote communication tools - telephone, e-mail, social media, chat function on the website and application. Within a few days, our employees in all three Baltic countries were able to continue their full-fledged work outside BTA's office premises, which ensured the continuity of the company's operations and the opportunity to implement portfolio development. BTA's digital development is the basis of our success in responding quickly and adapting to current conditions. However, in the meantime as well, BTA continues to provide support to those, who need it the most, for instance, to Parents’ House in the Children’s Hospital, as well as BTA makes advances to customers offering them to postpone payments on their policies for up to 90 days,” points out W. 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