Overview of the insurance market indicators in Latvia for the 1st quarter of 2023.
Insurance market data in Latvia in the first quarter of 2023 show diverse market dynamics, whose assets made by various life and non-life insurers.
Life Insurance
In the life insurance sector, total written premiums decreased by 8%, reaching 60,219,248 euros. The fall was more significant in the Latvian market, where premiums decreased by 12% to 42,230,373 euros. However, the premium signed for foreign countries the volume shows an increase of 5%, reaching a total of 17,988,875 euros.
As for the paid out benefits, life insurers paid out a total of 51,538,765 euros, which shows a significant a decrease of 23% compared to the first quarter of 2022. The amount of compensation paid in Latvia decreased by 21% to 37 140,048 euros, while the amount of compensation paid abroad decreased by 28% to 14,398,717 euros.
It should be noted that SEB Life and Pension Baltic showed a 4% increase in premiums, reaching 22,604,075 euros, while foreign premiums increased by 5% to 17,972,966 euros. The total amount of compensation paid decreased by 40% to 21,264 414 euros.
Non-life insurance
In contrast to the life insurance sector, the total written premium of non-life insurers increased by 25%, reaching 235,203,473 euros. The sum of signed premiums in Latvia 154,865,254 euros and abroad 80,338,219 euros.
Indemnity costs from non-life insurers also increased, reaching 126,074,689 euros, which is 17% more than in the 1st quarter of 2022. In Latvia, the increase was 15% (83,295,244 euros), while in foreign countries it was slightly higher - 22% (42 779 444 euros).
Balcia Insurance SE showed a significant increase in premiums by 59% to 36,804,233 euros. Also its compensation costs increased by 36% to 13,773,023 euros.
Overall performance
The overall performance of the insurance market in Latvia in the first quarter of 2023 was relatively stable. General insurance premiums signed by companies increased by 17% to 295,422,721 euros. At the same time, total rewards increased for a relatively modest 2% to 177,613,454 euros.
The resilience of the insurance industry is further highlighted by its consistent performance both at home and abroad. Insurers dynamically adapts its business models and strategies to better respond to changing market trends and demands, thus creating the basis for an ambitious year 2023 in the Latvian insurance industry.
There are some interesting trends and data points worth highlighting in this report:
- Significant foreign growth. For many insurers, premium growth from overseas markets is worth highlighting. That shows that Latvian insurers are successfully expanding their presence outside the country's borders. For example, SEB Life and Pension Baltic showed a 5% increase in foreign premiums.
- Contradictory trends in the life and non-life insurance industries are also noteworthy. As long as lives insurers experienced a decline in premiums and claims, non-life insurers experienced significant increases in both in categories. This difference may indicate a change in consumer preferences or a differential impact of external factors on the two for insurance categories.
- Balcia Insurance SE stood out in the non-life insurance category. This company had a significant increase in premiums for 59% and a 36% increase in compensation costs. The significant growth rate shows successful strategies initiatives and market competitiveness.
- Compensa Life Vienna Insurance Group SE Latvian branch and INVL Life UADB Latvian branch. Despite the total decline in the life insurance sector, claims for these two companies increased by 39% and 49% respectively. These the numbers indicate the amount of increased compensation for these companies, which could improve their reputation among customers.
While these points are interesting, they are only part of a bigger picture. Insurance market trends influenced by a variety of factors, including economic conditions, regulatory changes and consumer behavior.
Signed premiums
- Health insurance: the amount of premiums is 60,898,412 euros in Latvia and 5,539,135 euros abroad, which is 14% less than in 2022. The total amount is 66,437,547 euros.
- Civil insurance of owners of land vehicles, involving OCTA: Premiums amount to 27,932,964 euros in Latvia and 37,717,499 euros abroad, which is 32% more than in the first quarter of 2022. The total is 65,650,463 euros.
- KASKO: Premiums amount to 33,008,977 euros in Latvia and 21,333,294 euros abroad, which is 38% more than in 2022 . The total amount is 54,342,271 euros.
Compensations paid out
- Life insurance: claims amount to 29,092,482 euros in Latvia and 14,012,884 euros abroad, which is 29% less than in 2022. The total amount is 43,105,366 euros.
- Land vehicle owners liability insurance (including OCTA): Claims are 18,135,569 EUR in Latvia and EUR 21,107,379 abroad, which is 17% more than in 2022. The total is 39,242,948 euros.
- KASKO: Compensation is 22,247,099 euros in Latvia and 9,492,119 euros abroad, which is 14% more than in 2022 . Total the amount is 31,739,218 euros.
Total premiums signed by all insurance companies operating in Latvia were 197,095,627 euros in Latvia and 98,327 094 euros abroad. The total amount of compensation paid was 120,435,292 euros in Latvia and 57,180,171 euros abroad.
The data includes results from 4 risk insurers working in Latvia (Balcia, Balta, Baltijas Apdrošināšanas Nams, and BTA Baltic), 6 foreign risk insurers that have branches in Latvia (Compensa, ERGO, Gjensidige, If P&C Insurance, Swedbank P&C, Telia Forsakring), 2 life insurers (CBL Life and SEB Life and Pension Baltic), and 4 foreign life insurers (Compensa Life, ERGO Life, Mandatum Life and Swedbank Life).
The full report of the first quarter of 2023, as well as the insurance market indicators of other years, are available on the homepage of the Latvian Insurers Association section Market data.
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