Insurance companies earned 72% more last year than in 2019

The financial outcome of insurance companies' activities in 2020 was positive, with all six insurance companies ending the year with profits, Financial and Capital Market Commission (FKTK) said March 26.

Total profits in 2020 amount to €53.4 million, which is €22.5 million or 72.6% more than in 2019, according to FKTK.

At the end of 2020, six insurance companies were registered in Latvia and insurance services were provided by branches of 11 companies registered in other Member States.

In 2020, insurance operators charged €549 million in premiums in Latvia, which is 1.8% less compared to the previous year. Of that sum, €410.3 million was non-life insurance,  €138.7 million was life insurance.

In 2020, the amount of insurance premiums against gross domestic product accounted for 1.9% in Latvia, while in 2019 they were 1.8%. On average in Europe in 2019, it was 7.1%. On the other hand, the difference is even more pronounced comparing the average amount per insurance: in Latvia it was €288 in 2020, in 2019 it was €291, while on average in Europe in 2019 it was €2,085. 

€341.8 million was paid in insurance compensations, 6.6% less than in the previous year. In 2020, €253.7 million was paid in non-life insurance compensations in Latvia, a decrease of 11% compared to the previous year, and €88.1 in life insurance, up 8.9% from 2019.

In 2020, non-life insurance companies earned €50.1 million, with profits rising by 117.2% compared to the previous period. Meanwhile, life insurance companies earned €3.3 million in 2020, with profits down 58% compared with the previous year.

 

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