ASA KINDLUSTUSE AS

ANNOUNCEMENT

01.06.99

 

COMMENTARY TO Q1 1999 FINANCIAL RESULTS

 

As of 31.03.99, the balance sheet volume of ASA Kindlustus AS amounted 

to 108.9 million EEK (as of 31.03.1998, 126.7 million EEK). Balance 

sheet size decreased due to the financial loss in 1998.

 

As of the end of Q1, the volume of investments amounted to 62.98 

million EEK. Compared to the respective period last year, there have 

been significant changes in the company’s investment structure. Volume 

of deposits with credit institutions decreased, mainly due to 

termination of deposits with Israel’s bank. The share of loans 

increased, the main component of which are mortgage loans (22.84 

million EEK, or 77% of loan portfolio).

 

Compared to the same period last year, insurance provisions increased 

by 5.07 million EEK, amounting to 51.0 million EEK as of 31.03.99. The 

share of provisions account on the balance sheet increased from 36.3% 

to 46.8%. The share of owners equity account decreased from 49.4% to 

30.2.

 

In Q1 1999, ASA Kindlustus has collected insurance premiums in total 

amount of.7 million EEK, which is 2.6% more than during the same period 

last year. At the same time, the volume of net premiums decreased by 

3.2%. The share of claims paid on the account of net premiums increased 

from the last year’s level of 58.9% to 61.1%. 

 

In Q1 1999, ASA Kindlustus earned 357 thousand EEK of profit (in Q1 

1998, loss of -1576 thousand EEK). Such result proceeded mainly from 

reduction of expenses. In Q1, acquisition costs amounted to 7717 

thousand EEK (during the same period last year 7974 thousand EEK). 

Administrative expenses totaled 4219 thousand EEK (during the same 

period last year 5090 thousand EEK). Compared to Q1 1998, total 

decrease in net operating expenses in Q1 1999 was 12%. The share of 

operating expenses on net premium account decreased from the level of 

45% to 41%. In Q1, income from investments amounted to 3607 thousand 

EEK.

 

 

Nadja Tarmak

AB Kindlustuse Group

Manager of Financial Division

Tel. +372 644 0542