Baltic, Financial Services, Insurance, Transport

Such results show a twofold increase in profit compared to 2011. In 2012, ERGO customers in the Baltic countries were paid 17% more in claims compared to 2011 – EUR 96.3 million in total.

According to ERGO Insurance Group CEO Kestutis Bagdonavicius, gradual and moderate recovery of the Baltic economies revitalized the insurance market. "Premiums growth was achieved due to recovery of motor businesses in all Baltic countries, while improved loss ratios had the main impact on the positive result. An extraordinary effect from investments influenced the amount of profit as well. All ERGO insurance companies in the Baltic States, regardless of the challenging economic environment, achieved excellent results, which comply with the profitable growth strategy of ERGO Insurance Group in the Baltic States," says Bagdonavicius.

In property and casualty insurance segment, ERGO premiums in the Baltic States totaled approximately EUR 109 million – 8.8% growth on 2011. Good results were also achieved in the life insurance segment, totaling EUR 41.5 million premiums with a growth of 8.3%.

The main part of profit has been achieved by ERGO property and casualty insurance companies – EUR 6.9 million. In the life insurance segment, the profit amounted to EUR 1.9 million. In 2012, ERGO enhanced its financial strength and stability even more: ERGO investment portfolio in the Baltic States grew to EUR 329 million (EUR 312 million in 2011). ERGO equity increased to EUR 142 million (EUR 133 million in 2011).

In 2012, ERGO customers in the Baltic States were paid EUR 65.6 million in claims in the property and casualty insurance segment. The amount of claims paid in the life insurance segment totaled EUR 30.7 million.

Commenting the forecasts of ERGO Insurance Group in the Baltic States, Bagdonavicius emphasizes that the Baltic economies have been recovering since the end of 2010 and, in comparison with other EU countries, their growth will be above average also in 2013. "Various institutions assess the economic outlook of the Baltic States as good, key economic figures indicate that insurance markets will grow in accordance with GDP growth. However, considerable share of low value-added economy sectors weakens residents' wealth and purchasing capacity. The impact of the European Union's economic stagnation and growing competition on the Baltic insurance market should not be underestimated," notes Bagdonavicius.