ERGO in the Baltic States: profitable and with higher turnover in 2011February 20, 2012
According to Dr. Kęstutis Bagdonavičius, Chairman of the Management Board of the ERGO Insurance Group in the
Good results were obtained in the health and life insurance – ERGO in every country has grown faster than the market totaling more than EUR 38.3 million written premiums. The highest premium growth in health insurance segment was reported in
Non-life premiums written in the
ERGO enhanced its financial strength and stability even more: in 2011 investment portfolio of ERGO in the Baltic States grew to EUR 312 million (in 2010 – EUR 297 million), equity increased up to almost EUR 134 million (in 2010 – EUR 128 million).
All subsidiaries of the ERGO Insurance Group in the Baltic States – ERGO in
Commenting forecasts for this year, Dr. Bagdonavičius points that increase in amounts is foreseen in all segments. “The forecast for 2012 shows moderate growth of the insurance market, just in line with economy growth. Positive trends are anticipated in all insurance segments”.
According to the CEO, the growth in the non life segment will be influenced by the improved financial situation. “People spend more money to ensure financial protection for their property and family – are buying and taking out insurance for new cars and are purchasing real estate”.
Market recovery and thus the positive trends in the Baltic’s economy in 2011 have left also an influence on the development of life insurance market. “Life insurance in the Baltic countries is currently evaluated as one of the most perspective business types of insurance with big growth potentials, especially during the coming years”, – says Dr. Bagdonavičius.
Health insurance is continuing to grow due the fact that companies insure the health of their employees providing it as a part of motivation programme. Dr. Bagdonavičius also emphasizes, that despite the fact that currently the private health insurance takes just a small part of the total portfolio of the market, a big growth potential for this product is foreseen, unless it will be hindered by the changes in legislation or economic situation.
ERGO Insurance Group in the
ERGO has been among leading insurance groups in the
ERGO companies operating in the Baltic countries are part of the international ERGO Group – one of the largest insurance corporations in
Munich Re, one of the world's largest reinsurance groups, is the majority shareholder of ERGO.