ERGO in the Baltic States in the Q1 2012 grew profitable in all insurance segments

May 22, 2012

In spite of turbulence experienced on the capital markets, ERGO Insurance Group in the Baltic States in the first quarter of this year wrote over EUR 37.5 million in premiums, which resulted in a growth of 13.3 %, and earned EUR 165.742 profit, according to an IFRS-based assessment. In the first quarter of this year ERGO customers in the Baltic countries were paid more claims compared with last year (EUR 20.9 million in 2012, EUR 20.6 million in 2011).

According to Dr. Kęstutis Bagdonavičius, Chairman of the Management Board of the ERGO Insurance Group in the Baltic States, this year’s ERGO premium growth shows not only the insurance market to revitalise, moreover, the growth is also close related to integration of risk and performance management in an effective and timely fashion. “Reviving market combined with ERGO consistent and targeted actions, prudent underwriting policy, adapting the organization to market developments and focus on efficiency affected the profitable growth. Nowadays insurers face a range of challenges that may seem to threaten prospects for growth. But change is often accompanied by opportunity. Companies who can adopt a strategic approach, with clear goals and a well-articulated vision of what success will look like, can secure a competitive advantage from the current uncertainty”, Dr. Bagdonavičius says.

ERGO, as the only insurance company in the Baltic States offering a comprehensive spectrum of insurance to the customers, grew in all insurance segments in the 1st Q 2012. The highest P&C and Life premium growth of 47% and 31% was reported in Latvia with amount of EUR 10.3 million, while the largest amount of P&C and Life premiums was collected in Lithuania (EUR 15.6 million).

In the first quarter of this year ERGO outpaced the market in some insurance types: by more than 38% this year ERGO in Lithuania experienced growth in MOD (EUR 3.4 million), whereas ERGO in Estonia reported a 20.5% boost for MTPL (EUR 3.3 million). The volume of property insurance premiums increased by more than 15% in Lithuania. Estonia and Latvia were the leaders with respect to the growth in Health insurance with approx. 10.7%.

The subsidiaries of the ERGO Insurance group in the Baltic States – ERGO in Belarus, ERGO Invest and ERGO Funds – earned almost EUR 205 thousand profit.

“Based on the latest forecasts of the ERGO Insurance Group in the Baltic States, this year the Baltic insurance market is back on the growth track, however, the capital markets are reflecting the economic and politic climate and the uncertainty remains. On the other hand, uncertainties entail risks and opportunities, so the winners in the challenging insurance market will be those companies what maintain close contact with customers, offer the right savings and protection products at the right time, crafting products that match people’s requirements with their ability to pay”, Dr. Bagdonavičius says.

ERGO Insurance Group in the Baltic States

ERGO has been among leading insurance groups in the Baltic States and the only one to offer a complete range of coverage including property insurance and accident insurance along with life, pension and health insurance. Premiums of ERGO Baltic totalled EUR 138.2 million in 2011. ERGO Insurance Group is also present in Belarus offering services in the non-life sector. Over 550,000 customers in the Baltic States trust the services, know-how and financial stability of ERGO Group.

ERGO companies operating in the Baltic countries are part of the international ERGO Group – one of the largest insurance corporations in Europe with annual written premiums totalling EUR 20 billion. In 2011 ERGO paid out benefits to customers amounting to EUR 17.5 billion. Worldwide, the Group is represented in over 30 countries and concentrates on Europe and Asia. The Group is currently serving 40 million customers.

ERGO is part of Munich Re, one of the leading reinsurers and risk carriers worldwide.