ERGO in the Baltic States: profitable and with higher turnover in 2011
February 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 totalling more than EUR 38.3 million written premiums. The highest premium growth in health insurance segment was reported in Estonia (28.7 %). Lithuania leads by life insurance premiums,a which represents a 14.8 % year-on-year growth.
Non-life premiums written in the Baltic States accounted over EUR 99.8 million. ERGO in Latvia was the leader by growth of written non-life premiums, amounting to 38.5 % more non-life premiums compared with last year. On the other hand, the growth of premiums in the non-life segment was accompanied by the increased claim ratio in Latvia (7.4%), especially for MOD in Lithuania (19.6%) and MTPL in Estonia (10.1%).
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 Belarus, ERGO Invest and ERGO Funds – were profitable during the 12 months of this year and earned almost EUR 1 million profit.
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 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 more than EUR 138.2 million in 2011. ERGO Insurance Group is also present in Belarus offering services in the non-life sector. Over 450,000 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. ERGO has been represented in more than 30 countries in Europe, Asia, and Canada. The Group is currently serving 40 million customers.
Munich Re, one of the world's largest reinsurance groups, is the majority shareholder of ERGO.