E-office

Menüü

ERGO in the Baltic States: profitable and with more customer claims paid

November 21, 2011

According to an IFRS-based assessment, during the 9 months of this year, ERGO Insurance Group in the Baltic States wrote more premiums in all insurance segments – over EUR 97 million – and earned almost EUR 2,9 million profit.

In the 1-3 quarter of this year, customers in the Baltic countries were paid almost EUR 48 million for insurance claims. This year EUR 2,084 million more was paid out in non-life benefits compared with last year.  

According to Dr Kęstutis Bagdonavičius, Chairman of the Management Board of ERGO Insurance Group in the Baltic States, this year’s premium growth was a planned outcome. “The stabilization of the economic situation, the stable performance indicators and strategy, as well as solutions, which were timely and consistently adjusted to the market situation – these are the reasons for managing increase in premiums. All ERGO Baltic companies regardless of the demanding economic environment achieved excellent results, which comply with the profitable growth strategy of the ERGO Insurance Group due to prudent underwriting policy, professional investment management, adapting the organization to market developments and focus on efficiency”,  – Dr Bagdonavičius says.  

ERGO Insurance Group in Latvia was the leader by growth of written non-life premiums, amounting to 22,3% more non-life premiums compared with last year. Whereas the highest premium growth in Health insurance segment was reported in Estonia (42,2%). Lithuania leads by life insurance premiums,a which represents a 21% year-on-year growth.   

The growth of premiums in all insurance segments was accompanied by the increased claim ratio, especially for MOD and MTPL. Almost in Latvia paid claims increased more than 25%.  

All subsidiaries of the ERGO Insurance Group in the Baltic States – ERGO in Belarus, ERGO Invest and ERGO Funds - were profitable during the 9 months of this year.  

Commenting forecasts for this year, Dr.Kestutis Bagdonavičius points that increase in amounts is foreseen in all segments. “Based on the latest forecasts of ERGO Insurance Group in the Baltic States, this year the Baltic insurance market will be back on the growth track and the long term growth perspective in the Baltic’s is quite positive. Although in different tempos in each country, the recovery in the insurance industry will follow”, - Dr Bagdonavičius, Chairman of the Management Board of ERGO Insurance Group in the Baltic States, says.”