LEKS KINDLUSTUSE AS

COMMENTARY TO THE FINANCIAL RESULTS

26.11.1999

 

COMMENTARY TO Q3 AND 9-MONTHS FINANCIAL RESULTS OF LEKS KINDLUSTUS

 

The Supervisory Board of Leks Kindlustuse AS approved the Q3 and 

9-months financial results of Leks Kindlustuse AS. In 9 months Leks 

Kindlustuse AS posted a net loss of 2 million EEK and insurance 

technical profit of 0.9 million EEK. 

 

Leks Kindlustuse AS insurance technical result in Q1 was -4.4 

million EEK; after-tax net loss stood at -3.9 million EEK. In Q2 

1999 Leks Kindlustus earned 0.7 million EEK net profit, whereas its 

insurance-technical result was 1.3 million EEK. In Q3 Leks 

Kindlustus posted 1.2 million EEK net profit. Regardless of 2.7 

million EEK increase of provision for claims, the company's 

insurance technical result in Q3 stood at 4.1 million EEK. Net 

insurance technical reserves grew by 0.9 million EEK, totaling 93 

million EEK.

 

Compared to 9-months 1998 results, the gross premiums grew from 

118.6 million EEK to 150.5 million EEK. Net operating expenses 

declined from 40.9 million EEK down to 38.9 million EEK. The 

insurance technical results have improved mainly due to excellent 

risk management, decreased expenses, and improved claims and cost 

ratios. In Q3 the company's gross claims ratio stood at 57% (77% in 

Q1, 61% in Q2); the net claims ratio was 54%. In Q3 the gross cost 

ratio stood at 31% (36% in Q1, 33% in Q2).

 

In mid-November, Eesti Ühispank as the majority owner of Leks 

Kindlustuse AS, and Alte Leipziger reached an agreement in 

principle that the parties will begin negotiations for disposal of 

AS Eesti Ühispank shareholding in Leks Kindlustuse AS (47.7%). 

Eesti Ühispank has decided to sell its holding in Leks Kindlustus 

as damage insurance is not a part of the bank's strategic business 

fields.  

 

 

Pille Eikner

Public Relations manager

+372 66 58 200