According to half-year market data published by FKTK (the Financial and Capital Market Commission) 66% of the total GWP were written by local insurers (EUR 255 million), the rest were written by branches of EU insurers (EUR 131 million, or 34% of total GWP).
In terms of premiums, significant growth rates were observed in almost all major types of insurance - health (+15.2%), life (+12%), MTPL (+55%), and CASCO (+21%), as the published statistics revealed.
"The accelerated growth rates create a series of challenges: fierce competition, while customers are becoming more demanding. Thus, the insurance companies need to work hard on developing existing, but also, new products, while ensuring quality services, and also to be compliant with new legislative norms," explained Janis ABASINS, President of the Latvian Insurance Association.
During 1H2018, Latvian insurers generated EUR 7.23 million in aggregate profit, about EUR 2 million less as compared with June 2017, according to FKTK data.
Non-life insurers closed H1 with EUR 8.58 million in net profit (vs. EUR 8.74 million a year ago), while life insurers' profitability entered the negative reporting a net loss of EUR -1.35 million vs. a profit of EUR 489 thousand in H1 2017. In the case of non-life insurers, the loss ratio was 65.4% (vs. 62.7%) while the combined ratio was 96.0% vs. 95.4%.
Assets managed by Latvian insurers totaled EUR 746.09 million (about 18% more y-o-y), of which EUR 552.77 million are managed by non-life insurers and EUR 193.32 million by life insurers.
At the end of June, four non-life and two life insurers were active in the Latvian insurance market, as well as 11 branches of foreign insurers (of which four were active in life insurance market). By origin, foreign subsidiaries belong to companies domiciled in Estonia (six), Lithuania (three), Finland (one), and Sweden (one).
Of all six life insurers, the market leader in terms of GWP was a branch of the foreign insurer, ERGO Life Insurance SE Latvijas filiale (GWP of EUR 18.2 million, 27.7% market share). By the same criterion, the market leader in non-life was the domestic insurer BTA Baltic Insurance Company - GWP of EUR 109 million / 34% market share.
Access www.xprimm.com and download the 1H2018 Latvian insurance market statistics.