Life insurance company “Compensa Life Vienna Insurance Group” (“Compensa Life”) operated in the Baltic last year with a profit of 7,829 million euros, which is 11.5% more than in 2021, according to data released by the company.
“The increase in profit was mainly driven by a good risk insurance result and a successful long-term investment strategy. The positive changes in the value of financial liabilities brought better results than previously anticipated,” said Viktors Gustsons, head of the Latvia branch. Compensa Life’s.
On the other hand, “Compensa Life” signed a gross premium of 120,818 million Euros in the Baltics last year, 17.8% more than in 2021, when a gross premium of 102,551 million Euros was signed.
Gustson points out that nearly all insurance products have grown in popularity over the past year, but life pensions, health insurance, and cumulative life insurance have been particularly successful.
“Some of this trend was contributed by the impact of high inflation last year. Employers, for example, saw how expensive health care would be and bought more expensive health insurance policies for their employees – this trend was not observed. Not only in Latvia but also in Lithuania On the other hand, even after the rise in savings life insurance and the rapid price increase in energy payments, a middle- and high-income portion of the population still had hedging funds to channel future savings on fuel and food,” says Gustsons.
At the same time, “Compensa Life” paid 81.98 million euros in insurance claims in the Baltics last year, which is 11.8% less than in 2021, when 92,928 million euros were paid in damages.
The company states that at the end of last year, more than 310 million euros had been created in life insurance provisions, accounting for 64% of the group’s total liabilities. A provision is made to cover future insurance claims arising from life insurance contracts concluded by the Group.
“As in the whole economy, it is very difficult to predict the future trends of the insurance sector. Both Russia’s war in Ukraine and the European Central Bank’s policy to reduce inflation and interbank loan rates continue to raise interest rates. A great uncertainty for the future of the market. The economic recovery will also have an impact, and investors expect the international trade environment to stabilize. The growth of the life insurance market is expected to not be what it used to be. “As high as it was before the Covid-19 era,” Gustson says.
In 2021, it has already been announced that the profit of “Compensa Life” in the Baltic States is 7.021 million euros.
The sole owner of “Compensa Life” is “Vienna Insurance Group” (VIG), which operates in 30 countries, including the three Baltic states. Compensa Life specializes in cumulative life insurance, individual and life pension insurance, savings insurance for children, health insurance and accident insurance.
Compensa Life is represented in Latvia by the Latvian branch of Compensa Life, which has been operating in Latvia since 1999.
Source: Tv Net