STATISTICS: LATVIA, 1H2020: Insurers' net profits decreased 12% due the loss in life

22 October 2020 —
STATISTICS: LATVIA, 1H2020: Insurers' net profits decreased 12% due the loss in life
Latvian insurance companies generated EUR 13.53 million in aggregate H1 net profit, 12% less than a year ago (EUR 15.37 million), the end-June figures published by FKTK (Financial and Capital Market Commission) showed.

Non-life insurers closed the first six months with EUR 18.32 million in aggregate profit, vs. EUR 13.45 million, while life insurers market posted a net loss of EUR -4.78 million in contrast of a profit of EUR 1.92 million made a year ago.

At the same time, the technical result on life segment was EUR 4.29 million (vs EUR-6.48 million at theend of H1 2019),while on non-life side, the same indcator totaled EUR 15.75 million (vs. EUR 9.47 million).

Analyzing the GWP/claims indicators, the Latvian insurance market posted 3.31% in its insurance premiums to EUR 406.33 million, while claims decreased by 8.35% to EUR 245.07 million. About 64% of the total GWP were written by local insurers (EUR 260.62 million), the rest were written by branches of EU insurers (EUR 145.70 million, or 36% of total GWP).

In case of non-life segment, except Health (+4.36% y-o-y) and Suretyship insurance (+23.54%), in terms of premiums, significant decreases rates were observed in almost all major types of insurance - assistance (-34.22%), transport (-21.30%), MTPL (-12.14%), MoDh (-5.90) and GTPL (-5.73%), as the published statistics revealed.

Regarding the life insurance segment, this LoB is strongly influenced by the SEB's three Baltics life insurance entities which merged in one company headquartered in Riga, the figures published for SEB Life and Pension Baltic SE including the company GWP for the three Baltic markets. Thus, in terms of GWP, life insurance segment expanded 61% to EUR 113.45 million, almost 46% (more than EUR 52 million) being generated by SEB Life and Pension Baltic SE - the market leader of this segment.

The country's leading player in the non-life segment was BTA BALTIC Insurance Company (GWP of EUR 106 million), followed by BALTA (EUR 55.20 million) and BALCIA Insurance SE- EUR 29.31 million.

At the end of June 2020, there were four non-life insurance companies and two life insurance companies operating in Latvia, as well as eight branches of foreign non-life insurance companies and three branches of foreign life insurance companies. Of total 12 branches, five are registered in Estonia, three in Lithuania, two in Sweden and one in Finland.

Access and download the latest Latvian insurance market statistics.