Volume of the written gross insurance premiums of the insurance joint stock company “BTA Baltic Insurance Company” (hereinafter – BTA) in the Baltic States has increased by 3.7% in the nine months of this year in comparison with the same period of the last year, and has reached the volume of 162.4 mln euro. In nine months, BTA has disbursed in indemnities a total of 106.6 mln euro, which is by 20.3% more than in the nine months of the last year; and the profit before taxes in the Baltic States comprises 7.6 mln euro.
The total gross volume of the written BTA premiums in the Baltics made up 162.4 mln euro in the nine months of 2019, by 3.7% exceeding the amount of the same period of the last year. The volume of gross written premiums of BTA in Latvia has increased by 5%, reaching the volume of 62.1 mln euro; while in Lithuania within the nine months of this year BTA wrote gross insurance premiums comprising 80.9 mln euro, which is by 3.5% more than the nine months during the last year. But BTA in Estonia increased the gross volume of written premiums by 0.4%, comprising the value of 19.4 mln euro.
In the nine months of 2019, BTA Baltic wrote by 4.5% less gross premiums as mandatory third-party liability insurance of the vehicle owners (OCTA), even though it retains the largest ratio of the whole portfolio – 55.9 mln euro. Whereas, the increase was seen in gross volume of written premiums – KASKO with 6.4% increase, reaching 39.2 mln euro; as well as Health Insurance, where the volume increased up to 22.4 mln euro, which is by 11.2% more than the same period of the last year.
Within the nine months of this year, the most significant part of gross written premiums in BTA Latvia was taken by Health Insurance to the volume of 19.6 mln euro, by 6% exceeding the results of the same period in the last year. The second major type of insurance in Latvia according to gross volume of written premiums is KASKO with 13.1 mln euro (+5.6%), and the third largest type: OCTA with 10.8 mln euro (-11.1%). The most rapid increase in demand for Property Insurance has been observed in Latvia. In comparison with the last year, the gross volume of written premiums in this type has increased by 19.3% and reached 6.9 mln euro, which is an increase almost similar to the average in the market in general (+20.8%, according to the data of the Latvian Insurers’ Association).
The largest insurance type in BTA Lithuania according to the gross volume of written premiums is OCTA, reaching almost 39 mln euro (-3.5%), followed by KASKO with 19.2 mln euro (+10%), and the Property Insurance with 5.6 mln euro (+10.5%).
In Estonia, the largest gross volume of written premiums is achieved by KASKO insurance type with 6.8 mln euro (-1.6%), followed by OCTA with 6.2 mln euro (+1.8%) and Property Insurance with 1.8 mln euro (-1.6%).
“As we continue balancing of insurance types in BTA Baltic portfolio, we focus our attention not only on vehicle insurance, but such types as Health, Accident, Guarantee, General Third-Party Liability and Property Insurance. We wish to promote raising of the public responsibility level in relation to safety in housing: each purchaser of Property Insurance receives a smoke detector as a gift, which can often save the home and its inhabitants from useless worries and expenses after fire. We should also remember that as of the next year all homes must be equipped with a smoke detector as a mandatory requirement,” emphasises Wolfgang Stockmeyer, Chairman of the Board of BTA.
According to the data summarised by BTA, the indemnities comprising 106.6 mln euro have been paid out in the Baltics within the nine months of this year, by 20.3% exceeding the amount of the same period of the last year. The largest constant volume of indemnities was related to OCTA insurance events: for a total of 35 mln euro (+1.7%), followed by KASKO with 24 mln euro (+9.5%), as well as Health Insurance with 14.5 mln euro (+19.9%). A significant increase in BTA Baltic within the nine months of 2019 in comparison with the same period of the last year was experienced in the Property Insurance, reaching 12.6 mln euro, which is by 94.7% more. It has been mostly affected by indemnity applications for losses to the corn-fields of farmers, as well as due to several significant fires in commercial properties located in Latvia and Estonia. In general, BTA Latvia this year paid the most indemnities for Health Insurance reaching the value of 12.8 mln euro (+18.2%), OCTA – 8.2 mln Euro (-35.9%) and KASKO – 8.2 mln euro (-10.4%). In Lithuania the indemnities to the value of 22.4 mln euro (+22.5%) have been paid for OCTA Insurance; 10.3 mln euro (+25.3%) for KASKO Insurance, and 2.6 mln euro (+2.4%) for indemnity applications in Property Insurance type. Similar to Lithuania, also BTA Estonia mostly made indemnity disbursements in KASKO – 5.5 mln euro (+20.9%); OCTA Insurance – 4.3 mln euro (+32.4%); and Property Insurance – 3.8 mln euro (+221.4%).
The profits of BTA Baltic before taxes within the nine months of 2019 comprises 7.6 mln euro (+3.6%). In Latvia, BTA profits before taxes reaches 4.5 mln euro (+54.8%); in Lithuania – 3.9 mln euro (-44.6%); and in Estonia the losses were reduced by 68.2% and currently forms the value of 0.8 mln euro.
“It should be noted that this year’s summer has been a real challenge for farmers. However, regardless of the major increase in indemnity applications, BTA specialists try to examine the substance of the case as soon as possible. We understand how important even cash flow in business; that is why we care for the sense of security of our customers in every situation,” explained Mr 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