LEKS KINDLUSTUS

ANNOUNCEMENT

02.12.98

 

COMMENTARY TO THE FINANCIAL RESULTS 09/98 

 

The insurance companies of Leks Group have collected gross 

insurance premiums in the amount of 142.8 million EEK during the 

first 3 quarters of the current year, which is 36% more than 

during the same period last year. The results of Ukio Draudimas, 

the insurance company located in Lithuania (Leks Kindlustuse owns 

36,5% of shares), are reflected based on the equity method. The 

financial results of ETAS Kindlustuse AS are reflected on the 

income statement of Leks Kindlustus as from 01.05.98. The 

financial statements of the Leks Elukindlustuse AS (100 %),  

Kahjukäsitluse AS (100 %) and Leks Investeeringute OÜ (100 %) are 

consolidated on the balance sheet of Leks Group.

 

PREMIUMS COLLECTED BY THE COMPANIES OF LEKS GROUP (III quarters)

 

                              1998.a.    change compared with                                          

						1997.a. (%)

(in million EEK)

LEKS KINDLUSTUSE AS		141,7		29	

LEKS ELUKINDLUSTUSE AS	          9,5		71

SAULES LAIKS			 24,5		 6

UKIO DRAUDIMAS			 57,6		83

 

The net premium volume of Leks Group in III quarter of 1998 was 

87,5 million EEK, increasing by 35,2 million EEK or almost 70% in 

one quarter. The balance sheet volume of a group at the end of 

the accounting period was 194,6 million EEK, which 70 million EEK 

(56%)higher than in the beginning of a year.

 

The 9 months non-life insurance technical result of Leks Group 

was -26 million EEK, and the life insurance technical result was 

1,93 million EEK. The administrative expenses of the subsidiaries 

and associates of Leks Group amount 630 thousand EEK. The results 

of the subsidiaries and associates of Leks Kindlustus are 

reflected as follows:

 

                                RESULT    CONSOLIDATED VALUE	

	

(in million EEK)

SAULES LAIKS			- 2,050		- 0,996

LEKS ELUKINDLUSTUS		- 0,148

KAHJUKÄSITLUSE AS		  1,403

LEKS INVESTEERINGUTE OÜ	          0,138

UKIO DRAUDIMAS			- 1,969

 

The 9 months non-technical result of Leks Group is -33,9 million 

EEK. Analyzing the dynamics of the technical and non-technical 

results of Leks Group during the current year, we can see a clear 

tendency toward improvement. 

In the current year, Leks Kindlustus has stressed on decreasing 

the administrative expenses and adjusting the asset insurance 

rates, which have already had a positive effect on the results of 

the III quarter. When the affiliated group’s loss increased by 

16.5 million EEK in the II quarter, then in the III quarter, the 

growth of the loss has stopped, and the loss was below 7 million 

EEK. Based on the above-mentioned changes, we have a reason to 

believe that in the last quarter of the current year, the 

quarterly loss will decrease further by at least 50%, to the 

level of 4 million EEK. Therefore, the forecasted 1998. loss of 

Leks Kindlustus will be approximately -38 million EEK.

The share capital of Leks Kindlustus is 76,1 million EEK and 

owners’ equity 59,7 million EEK. 

  

 

Additional information:

Aarne Orav

Financial Director

+372 6 267 204

 

Rivo Saarna

PR Manager

+372 6 267 281, +372 50 65 768