The above mentioned figures are consolidating the results achieved by the group's mother company, BTA Insurance Company SE (hereinafter - BTA) and the newly founded subsidiary AAS BTA Baltic Insurance Company (hereinafter BTA Baltic).
Considering the financial results of BTA Baltics in 3Q2015, in Baltic States (Latvia, Lithuania, Estonia) the amount of endorsed insurance premiums remained on the same level, compared with the same period of previous year. BTA Baltic wrote gross insurance premiums of EUR 29.4 million. The company saw a significant increase in premiums for the voluntary insurance types (11% for the CASCo line, 19% for health insurance, 6% in property insurance and by about 3% in insurance of personal accidents), while the weight of the mandatory insurance lines in the overall portfolio decreased.
In total BTA Baltic paid out insurance indemnities in the third quarter of 2015 in the amount of EUR 16.5 million, which is by 17% more than in the respective period of previous year. The increase in the amount of insurance indemnities was largely caused both by an increase in the number of road traffic accidents and increase in prices of car repair services and medical services.
Despite the growth of insurance indemnities paid out by BTA, successful restructuring of administrative processes and targeted and qualitative segmentation of insurance market, profit of BTA Baltic in the third quarter reached EUR 2.3 million, the company's operations in all Baltic States being profitable.
Janis LUCAUS, Board Chairman of AAS BTA Baltic Insurance Company: "The total financial results of BTA group and BTA Baltic in the third quarter of 2015 prove the successful implementation of business strategy by splitting the company in accordance with the geographical distribution of its business operations. The increase in endorsed insurance premiums in voluntary types of insurance is indicating a positive trend - the purchasing power of customers and their understanding of the need of insurance is growing. Also it should be noted that in order to ensure effective operation, competitive services and stability in future, BTA is continuously optimizing administrative processes and operational costs, performs restructuring of portfolio and improves services offered to customers, such as much faster disbursement of insurance indemnities in all types of insurance."
Being the only insurance company in Latvia, which exports financial services, in the third quarter of 2015 BTA successfully continued development of business beyond Baltic States. In 3Q 2015 BTA demonstrates successful results and growth of endorsed insurance premiums in France, Poland and Spain. In comparison with the respective period in previous year, in nine months this year BTA has increased the volume of endorsed motor own damage insurance premiums by 16.5%, compulsory motor third party liability insurance - by 57.5%, property insurance - by 9%. In nine months in Spain BTA increased the amount endorsed insurance premiums both in motor own damage insurance (+51.3%) and in compulsory motor third party liability insurance (+37.6%). In Poland BTA increased the amount of endorsed insurance premiums in compulsory motor third party liability insurance type (+2%), as well as in general third-party civil liability insurance, bond insurance and personal accidents insurance.
The insurance company BTA was founded in 1993, under its initial name JSC Baltijas Transporta apdrosinasana (Baltic Transport Insurance). During its initial operation in the sector of sea and air freight insurance, BTA soon proved itself as a universal insurance company, able to offer the widest range of insurance services to its clients. Since year 2002, which is when BTA acquired the Lithuanian insurance company BTA Draudimas, BTA has been focused on business also in other countries, such as Estonia, Germany, Spain, Poland, France, Italy, the United Kingdom. Initially, its fundamental principle of operation was Freedom of Services (FOS), later on establishing branches.
To enjoy the benefits offered by the European Union and facilitate business abroad, BTA became a European business in February 2011 and acquired its new name BTA Insurance Company SE.
BTA is the only Latvian insurance company, which exports financial services and operates not only in the Baltic States. The international growth of BTA is proven by the TOP 500 of Central European Companies issued by the international auditor company Deloitte for year 2013, where BTA ranks 50th among the largest insurance companies in Central Europe. However, upon evaluation of results of 2014, in 2015 BTA has been placed among 25 best Latvian export brands, winning The Red Jackets title.
To continue successful implementation of expansion strategy of the company, to facilitate more dynamic development of its business in Europe and structure its administrative resources and processes in line with the strategic lines of its business operations, the insurance company BTA Insurance Company SE launched a reorganization plan in October 2014 to divide the company according to the geographical distribution of its business operations: Baltics and rest of Europe. As part of the reorganization, the BTA subsidiary, AAS BTA Baltic Insurance Company was founded on 27 October 2014. Having completed the reorganization and retained the current service portfolio, insurance services in Latvia, Lithuania, and Estonia are, starting from 1 July 2015, being offered by AAS BTA Baltic Insurance Company, whereas BTA Insurance Company SE continues market expansion in other European states.
BTA is also the largest payer of insurance indemnities in Latvia. In 2014 BTA paid out insurance indemnities of 335 thousand euros every workday in average, which is about 44 thousand euros paid out every working hour.