Latvian insurance market overview 2023 Q1

July 2023

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.

a stack of 20 euro banknotes and a paperclip with a 100 euro banknote

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:

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

Compensations paid out

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.

Back to the blog