OREANDA-NEWS. May 03, 2008. „The fast growth of our company compared to the market growth was determined by the successfully implemented change program that lasted for several years, intended for the improvement of the various business areas and for the development of the novelties“ – stated Kestutis Serpytis, Lietuvos Draudimas Chairman of the Board. – „Last year we presented to the clients such novelties as Mandatory motor third party liability insurance sent by e-mail, other e-insurance services, moreover, we expanded the insurance contract renewals by mail and claims handling by phone, reported the press-centre of Lietuvos Draudimas.

During the last year around 35% of all the customers who incurred claims used this simplified way, whereas almost 50% of all the insurance contracts were renewed by mail. Such results achieved by the Company comply with the achievements of the mature European insurance markets“– said K. Serpytis.

In his opinion, the increased number of the insurance contracts concluded, which grew by 20% up to 1,3 m in 2007 proves the fact that customers evaluated the new services and convenience.

According to the Chief Executive Officer of the insurance company, the profit of Lietuvos Draudimas for 2007 increased mostly due to the effective risk management and successful investment program. Last year the Company earned 20 m LTL of profit from investment (bonds, shares and the owned real estate), whereas in 2006 it was 14 m LTL. Such results were determined by the increased value of the Company’s owned real estate and the chosen secure investment strategy.

The fastest growing Company segments in 2007 traditionally remained motor vehicle (casco), mandatory motor third party liability and property insurance lines. 

Last year Lietuvos Draudimas covered the losses to the customers in amount of 208 m LTL, which is by 47% more than in previous year. The claims growth was mainly influenced by the increasing number of the motor claims and the repair works getting more expensive, moreover, the inflation in the real estate property sector. According to K. Serpytis, last year was distinguished with plenty of the large claims, even 15 claims covered by the Company exceeded 0,5 m LTL. Majority of the customers who incurred large claims suffered from fire. 

Pursuant to the last year’s data Lietuvos Draudimas provides services to around 500.000 private and commercial customers. In the end of 2007 the Company was holding one of the largest insurance service networks consisting of almost 90 branches in all the cities and towns of the country.  

Lietuvos Draudimas is part of Royal & SunAlliance - one of the largest insurance groups worldwide, which ended 2007 having 2,7 billion LTL of profit and wrote 25,4 billion LTL of premiums, that is by 6% more than in 2006.