The volume of gross insurance premiums written by BTA Baltic Insurance Company AAS (hereinafter – BTA) in 2020 in the Baltic States, as compared to the same period in 2019, reached 208.5 million euros, which is by 7.2% less compared to the same period in 2019. The volume of insurance claims paid by BTA reached EUR 127.8 million euros, which is by 8% less than in 2019.
“Due to the Covid-19 pandemic, 2020 was a challenging year in all Baltic countries and it had an impact on all insurance market players, their development and future plans. However, BTA was able to cope with this situation perfectly well, maintaining its focus and proving its high added value to customers and partners. With the restrictive measures introduced in the Baltic States in March 2020, BTA experienced considerable pressure due to the declining consumer and corporate demand for insurance products and, at the same time, lower prices, mainly in the motor insurance business. Nevertheless, BTA managed to maintain premium volumes in such product lines as Health, Property and others. 2020 was also a crash test for BTA's information technology solutions and internal processes, and their consequent break-through development, by making the transition from work in the office to work from home. The successful transition and the ability to provide customers with a consistently high level of service proved that BTA's strategic decision in the past – to focus on improving technological solutions and the efficiency of internal processes – has been a right one. Also, stable Solvency II ratio is one of the main indication which shows that our business is very robust and enables us to deliver the stability and protections in times of change and insecurity,” explains BTA Management Board Chairman Wolfgang Stockmeyer.
The total volume of BTA's gross written premiums in the Baltics in 2020 reached 208.5 million euros, which is by 7.2% less than for the same period in 2019: last year BTA Latvia gross written premiums amounted to 79.6 million euros (-4.9%), in Lithuania, the amount of gross insurance premiums reached 103.6 million euros (-9.3%), while in Estonia the amount of gross written premiums of BTA was 25.3 million euros (-5.1%).
In 2020, the largest volume of gross written premiums of BTA in the Baltics was in the compulsory motor vehicle owners’ third party liability insurance (MTPL) – 68.1 million euros, which is by 10.6% less than in 2019. In CASCO insurance, which is in the second place, BTA’s gross written premiums amounted to 50.0 million euros and is 4% less than a year ago. Whereas the most significant increase, and the third largest insurance type by gross premiums written in the Baltic portfolio of BTA in 2020 was Health insurance – 27.9 million euros, which is by 8.7% more than in 2019.
“In 2020 BTA continued the ongoing projects and initiated new ones, thus ensuring investment in long-term development. What needs to be emphasized is the huge and invaluable contribution of BTA employees to the implementation of a number of very important projects, continuing to create innovations and develop internal processes, focusing on creating innovative products and offering customers new ways to receive BTA services in person and remotely. For example, extensive changes were made to the functionality of BTA's Latvian, Lithuanian and Estonian websites and Health Insurance mobile applications, creating innovations unprecedented in the insurance market. Thanks to these and several other projects, BTA also received high recognition from the shareholder in 2020 and became the most innovative company in the group. One more time – huge thank you has to be told to all our employees and partners for outstanding work and efforts made to contributing success story of BTA,” says W. Stockmeyer
BTA in Latvia in 2020 improved its indicators in the most significant insurance type – Health insurance, reaching 23.3 million euros, which is 5.1% more than in 2019. The second largest type in Latvia last year was CASCO insurance, where gross premiums of 15.8 million euros were written and is 10.8% less than a year ago. The third place in 2020 was Property insurance, where the volume of gross written premiums amounted to 14.6 million euros thus it is by 4.7% more than in 2019.
In Lithuania, the most significant part of BTA's gross written premiums was MTPL type with 48.6 million euros, which is 8.5% less than in 2019. The second largest type of insurance in Lithuania by the amount of gross written premiums is CASCO with 25.5 million euros, which is 2.8% more than a year ago, while the third largest is Property insurance – 8.1 million euros. According to financial accounting data, in 2020 the amount of gross written premiums in Property insurance decreased by 36% compared to 2019 (due to changes in financial accounting principles), but excluding this accounting adjustment, the amount of premiums in Lithuania increased by 16%.
According to the amount of gross written premiums, the largest type of insurance in Estonia last year was CASCO, reaching 8.8 million euros, which is by 8.9% less than in 2019, followed by MTPL with 7.7 million euro and that is 7.3% less than a year ago. The third largest type in Estonia is Property insurance, where gross written premiums amounted to 3.4 million euros, providing an increase of 31.7% compared to 2019 data.
Following the decrease of the volume of insurance premiums, the volume of BTA Baltic insurance claims paid decreased by 8% in 2020 and reached EUR 127.8 million euros. The largest volume of claims was for MTPL insurance cases 44.3 million euros (-5.8%), followed by CASCO with 31.8 million euros (-1.4%), as well as Health insurance with 20.9 million euros (+6.1%).
Last year in Latvia, the largest volume of payments made by BTA was for claims in Health insurance – 18.0 million euros (+3.6%). 11.3 million euros (+3.6%) were disbursed for claims made in the CASCO insurance type, while the total volume of indemnities paid for MTPL claims reached 9.0 million euros (-16.8%).
In Lithuania, the largest amount of insurance indemnities was disbursed for claims within MTPL insurance, reaching 30.1 million euros (-1.7%), and for CASCO claims – 13.5 million euros (-4.1%). The third most important type is Property insurance, where claims payments amounted to 4.7 million euros (+14.4%).
The largest amount of insurance indemnities paid by BTA in Estonia was in CASCO insurance type – 7.0 million euros (- 3.8%). Claims paid for MTPL insurance cases in Estonia amounted to 5.2 million euros (-6.7%), while for Property insurance -1.1 million euros (-74.9%).
In 2020, BTA Baltic profit before taxes is 14.2 million euros. In Latvia, BTA's profit before taxes is 2.2 million euros, in Lithuania it is 9.8 million euros, and in Estonia it is 2.3 million euros.
"In 2021, our further plans will be in many ways affected by the development of the insurance market, which, in turn, is closely related to the gradual lifting of restrictions caused by the pandemic and the economic recovery. However, despite the pace of stabilization, BTA is going to further improve its internal and external processes, work on the development and diversification of communication channels, as well as keep on investing in employee satisfaction and knowledge improvement. These are the fundamental preconditions for even higher achievements in the long term,” pointed 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 sole shareholder of BTA is Vienna Insurance Group AG with close to 200 years of experience in the insurance business. With about 50 companies in 30 countries and more than 25,000 employees, Vienna Insurance Group is a clear market leader in its Central and Eastern European markets, and takes care of more than 22 million customers. Vienna Insurance Group is the best-rated company of ATX, the leading index of Vienna Stock Exchange (since 1994) with a rating of A+ with stable outlook from Standard & Poor’s; its share is also listed on the Prague Stock Exchange. Vienna Insurance Group works in close partnership with Erste Group – the largest retail bank in CEE.
Marketing and Public Relations Department Director
BTA Baltic Insurance Company AAS