ERGO in the Baltic States, FY2017: almost double bottom line result despite the high volume of paid claims
Despite the high claims payments ERGO in the Baltic States has achieved in 2017 an almost double bottom line result than in 2016: EUR 8.63 million against EUR 4.52 million last year.
GWP amounted to EUR 242 million, 17.5% up y-o-y, outpacing the Baltic market which went up in the first 11 months by 14.,9%. Paid claims have increased from EUR 133.4 million in 2016 to EUR 142.6 million last year.
In all Baltic countries the key growth drivers of ERGO in P&C were motor lines, in Life insurance segment - UL (unit linked). In P&C the GWP increased by 22%, in Life by 6,1 %, in Health insurance the increase was by 12,5%. Bottom line development has improved in all Baltic countries due to positive UW results.
During 2017 ERGO customers in the Baltic countries were paid EUR 142.6 million in claims. The biggest number of big claims were fixed in Lithuania: a claim in amount of EUR 2.,4 million was due to African pig plague, three huge claims due to fire accident in commercial buildings from EUR 0.3 to 0.6 million (two of them), the biggest motor insurance claim exceeded EUR 0.32 million. In Estonia the biggest claim, exceeding EUR 0.45 million, was reported in motor insurance. In Latvia the biggest claim due to fire in private property exceeded EUR 0.25 million.
CEO of ERGO insurance companies in the Baltic States Dr. Bagdonavicius said: "We are proud of the performance of our companies in the Baltic States last year. Despite the huge amount paid for our customers' claims, we have achieved significant increase in all areas: we have outperformed the Baltic insurance market, had a great increase in GWP, and generated a positive UW result. This year we will stay focused on improving technical profitability in all lines of business, as well as improving efficiency in our processes, so that the customers get the price service offer according to their expectations".
ERGO in the Baltic States
ERGO has been among leading insurance groups in the Baltic States and offers a complete range of coverage including non-life insurance along with life and health insurance. Premiums of ERGO Baltic totalled EUR 242 million in 2017. Last year customers in the Baltic countries were paid EUR 143 million for insurance claims. ERGO is also present in Belarus offering services in the non-life sector. Over 650,000 customers in the Baltic States trust the services, know-how and financial stability of ERGO Group.
ERGO companies operating in the Baltic countries are part of the ERGO Group - one of the major insurance groups in Germany and Europe. Worldwide, the Group is represented in over 30 countries and concentrates on Europe and Asia.
ERGO is part of Munich Re, one of the leading reinsurers and risk carriers worldwide.