Summarizing the results of 2010, Mr. Aigars Freimanis, Member of the Board of Directors of the Joint Stock Insurance Company “Seesam Latvia”, acknowledges that it was a complicated but in the same time also rather successful period of time for the company:
– The company was determined to strengthen its position in the Latvian insurance market. And we achieved this goal. “Seesam Latvia" started the year with replacement of the company logo, to emphasize our belonging to OP-Pohjola Group - one of Finland's leading financial groups. Logo change, which took place simultaneously in all three Baltic countries, served as a clear signal that "Seesam Latvia” as a unified and integrated company of OP-Pohjola Group confirmed its long-term action plans in the Baltic markets, as well as guaranteed high financial stability, accountability and safe cooperative partnership of the group of companies.
Despite the overall economic downturn, the year 2010 for the JSIC “Seesam Latvia " was a development stage, when several new insurance products were introduced. Last year, the JSIC “Seesam Latvia” managed to increase their customer base and enter into 104,279 insurance contracts, and this number compared with 2009 is by 29.4% more – in 2009 there were concluded 80,572 insurance contracts. Mr. A.Freimanis attributes this success to the substantially improved visibility of the company and increased customer demands for stability and security:
- We are proud of our company's good reputation and financial stability, which ensured loyalty of customers of the "Seesam Latvia” and thus also an increase of the number of contracts concluded. We are well aware that customer loyalty can not be obtained in one day, so we are thinking about further development prospects of the "Seesam Latvia” also in the course of performance of daily routine tasks. The aim of our activities is sustainable development.
At the same time Mr. A.Freimanis recognizes that the economic situation has led to a fall in most of the company's performance indicators, though this fall has been less than in the Latvian insurance sector as a whole. The amount of gross written premiums JSIC “Seesam Latvia” in 2010 was 7.57 million LVL before mandatory deductions. This is by 18.3% less than in 2009, when the amount of gross written premiums was 9.27 million LVL. The main reason of the decrease of the premium amount in 2010 was a significant reduction of policy prices.
Last year, also the gross amount of claims paid decreased by 32.2% - in 2009 the gross amount of claims paid was 7.54 million LVL, but in 2010 - 5.11 million LVL. The decrease of the amount of claims paid was caused mainly by the health and vehicle insurance portfolio reduction.
By increasing the labour productivity and carrying out conservative insurance policy, the technical profit of the JSIC “Seesam Latvia” amounted to 473.6 thousand LVL in 2010, which was by 17.5% less than in 2009 when the technical profit reached 574.3 thousand LVL. But the profit before tax of the JSIC “Seesam Latvia” in 2010 amounted to 884 thousand LVL, which is by 37.1% less than in 2009, when the profit before tax amounted to 1.405 million LVL.
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