LATVIA 1H2013: market growth owed to the EU branches

17 October 2013 — Vlad BOLDIJAR
Due to the persisting economic and consumption growth, the insurance market is accelerating by 7%, as shows the data provided by the Statistical Office and FKTK. The value of GWP by insurance companies increased in respect of all major types of insurance, especially the life segment (+23%). During the reporting period, gross premiums written by insurers (local companies and branches of EU insurers) totaled LVL 168 million or EUR 239 million, of which gross premiums written by the EU companies reached EUR 61 million or 26% of the total premiums written.

The amount of investments of insurance companies decreased by 1.5% y-o-y to LVL 288 million (EUR 410 million). By countries, the value of investments in Latvia represented 46.4% of the total, Lithuania accounted for 18.8%, Luxembourg - 8.2%, Poland - 5.3%, Germany - 4.3%, while the remaining 17% went to other 33 states. At the same time, the structure of the investment portfolio consisted of debt securities and other fixed-income securities - 51.5%, time deposits with credit institutions - 17.6%, shares and other variable-yield securities - 9.7%, claims on demand to credit institutions - 8.6%, or investments for the benefit of life insurance policyholders bearing the investment risk - 5.9%.

According to the figures published by the Financial and Capital Market Commission - FKTK, in the reporting period, the total capital and reserves of insurance companies was LVL 90 million (EUR 128 million), the written share capital totaled LVL 53.4 million (EUR 76 million), while profitable activities were reported only for the non-life insurance lines of business (profit of LVL 1.8 million or EUR 2.5 million). For the life insurance segment, losses totaled LVL 0.7 million or EUR 1 million.

Read more in the forthcoming edition of XPRIMM Insurance Report - CEE, Russia&CIS, SE 1H2013, to be released on October 20th, on the occasion of the XPRIMM Reception in Baden-Baden.

Access and download the 1H2013 Latvian insurance market statistics.

Market portfolio (in EUR and LVL):
  • Gross written premiums
  • Paid claims
  • Growth rates

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