Profit of EUR 2.5 million in Baltic States for the newest VIG arm

23 February 2017 — Vlad BOLDIJAR
The FY 2016 preliminary figures indicate that the newest VIG arm in the Baltic States - BTA Insurance Company - generated for the three markets that form the region (Latvia, Lithuania and Estonia) - aggregated GWP of about EUR 132.5 million, 15.4% more y-o-y. At the same time, the value of paid claims increased by 9.8% y-o-y, to EUR 77.5 million, while the company's gross profit last year was EUR 2.5 million, the LETA news agency reported.

On insurance classes, the fastest growth in GWP was recorded for the following classes: MTPL (+23%), accidents (+20%), health (+18%), MoD (+17%) and property (+13%).

In terms of paid claims, the largest growth (+109%) was reported in general TPL insurance due to several sizable indemnity payments to corporate customers. At the same time, the indicator increased also in accident (28%), MTPL (11%) and MoD (9%).

LETA mentioned that in Estonia, BTA recorded the steepest growth in percentage terms: +29%, being one of the fastest growth rates in the Estonian non-life insurance market. At the same time, in absolute value, GWP grew most in Lithuania - by EUR 31.2 million, which is twice as fast as the overall growth in the Lithuanian non-life market, while in Latvia, GWP increased one percent - following the tough competition.

Janis LUCAUS, CEO of BTA, pointed out that "joining the VIG family" - had enabled the company to significantly increase its sales in the neighbouring countries and to strengthen its position in the corporate customer segment where the value of GWP was up by 18%.

At the same time, he mentioned that the three Baltic markets still offer great potential for growth: "The number of new cars registered in the three Baltic States has been growing in 2016 and also in January 2017, and growth is expected also in the housing insurance segment, as currently, small share of Baltic households insure their homes", said Janis LUCAUS, quoted by LETA.

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