For ERGO in the Baltic States 2015 was a year of profitable
March 01, 2016
ERGO in the Baltic States during the 1-4Q of 2015 has shown excellent results in both – GWP and profit – as well as outperforming the market in all lines of the business. Written premiums in the amount of 186 million euros achieved the growth of almost 14% in comparison to the last year. Positive bottom line result amounted to 4,33 million euros profit. During the 1-4Q of 2015 ERGO in the Baltic States has outperformed market in all business segments: P&C, Life and Health and increased its market share from 12,6% to 13,5% on regional level. While Baltic insurance market grew by 6,8%, ERGO grew by 13,9%. In 2015 ERGO customers in the Baltic countries were paid 98 million euros in claims, this amount is by ca. 19,5% higher than during last year.
Commenting the 1-4Q 2015 results of ERGO in the Baltic States Dr. Bagdonavičius, Chairman of ERGO insurance companies in the Baltic States, emphasizes that even under fierce competition ERGO is able to keep the leading position in the insurance market in the Baltic States. ”Within the ambitious organic growth strategy we have achieved excellent performance in all Baltic countries and in all lines of the business ERGO has outperformed the market. The main drivers for premiums growth in P&C were the motor lines of the business, in Life/ Health the growth was achieved due to life annuities in Estonia, bancassurance business in Latvia and Health business in Lithuania. Due to growing Life business volumes we had significant growth of investment portfolio as well. The profitable growth of our business remains remarkable”, says Dr. Bagdonavičius.
In 12 months of 2015 ERGO customers in the Baltic States were paid 98 million euros in claims. The biggest claim has been fixed in Lithuania due to fire in amount of 1,5 million euros. In Estonia the biggest fire claim exceeded 0,45 million euros. The biggest claim in Latvia, exceeding 0,34 million euros, was reported in construction insurance.
Commenting the trends of insurance market in the Baltic States Dr. Bagdonavičius emphasizes a strong focus on customer needs, on efficiency which will be driven by innovations and digitalization. “In the insurance market we see the trend of the creation of culture of innovation as this is a “must” keeping in mind changing behaviour of customers and the fast development of the digital environment. The ERGO Group worldwide strongly focuses on innovations and digitalization as it wants to take the driving seat for innovation and digital transformation. We are convinced that innovative thinking and innovative ways of doing things is a value for our stakeholders”, says Dr. Bagdonavičius.
According to Dr. Bagdonavičius, from this year insurance market is facing a new regulatory environment Solvency II, which causes a new rhythm of performance within insurance market.
ERGO in the Baltic States
ERGO has been among leading insurance groups in the Baltic States and offers a complete range of coverage including non-life insurance along with life and health insurance. Premiums of ERGO Baltic totalled EUR 186 million in 2015. Last year customers in the Baltic countries were paid EUR 98 million for insurance claims. ERGO 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 ERGO Group – one of the major insurance groups in Germany and Europe. Worldwide, the Group is represented in over 30 countries and concentrates on Europe and Asia.
ERGO is part of Munich Re, one of the leading reinsurers and risk carriers worldwide.