LEKS KINDLUSTUSE AS

ANNOUNCEMENT

31.03.99

 

COMMENTARY TO THE FINANCIAL RESULTS OF 1998 

 

The total volume of gross premiums collected by the insurance companies 

of Leks Group by the end of 1998 was 191.9 million EEK, which is 80 % 

more than the respective result of 1997. By the end of 19998, the 

volume of net premiums collected by Leks Kindlustus amounted to 122.5 

million EEK. The consolidated balance sheet volume at the end of the 

accounting period was 155 million EEK.

 

The loss of Leks Kindlustuse Group at the end of 1998 totaled 67.2 

million EEK. Of this amount, operating loss accounts for 30.3 million 

EEK (i.e. insurance technical and non-technical results), loss from 

asset revaluation 5.9 million EEK, and loss from subsidiaries 28.7 

million EEK. Loss of Leks Kindlustus from financial investments was 2.9 

million EEK. Other income earned by the company totaled 0.9 million 

EEK.

 

The merger with ETAS Kindlustus is reflected insurance-technically in 

the present report as of 01.05.1998, after transfer of insurance 

portfolio. The assets of the companies were merged on the basis of 

purchase analysis on 01.07.1998, resulting in goodwill in the amount of 

1.8 million EEK, which will be amortized in 5 years.

 

Among the subsidiaries, goodwill of the Latvian insurance company 

Saules Laiks was discounted to the level of zero; in the report, the 

subsidiary is reflected as a part of owners’ equity of Leks. The 

unaudited loss of Saules Laiks amounted to 8.3 million EEK. The 

affiliated company of Leks Kindlustus, Ukio Draudimas, is down-valued 

to the level of zero. The profit earned by the end of 1998 by 

subsidiary of Leks Kindlustus, Leks Elukindlustuse AS, amounted to 

108.1 thousand EEK; profit of Kahjukäsitluse AS in 1998 was 187.9 

thousand EEK, and the profit of 1997 increased proforma to 36.2 

thousand EEK. Leks Investeeringute AS earned in 1998 82.8 thousand EEK 

of profit, reflected in the income statement of Leks Kindlustus as a 

loss of 54.8 thousand EEK. 

 

 

Additional information,

Pille Kaselo

Public relations manager

+372 626 7270, +372 508 7962