OREANDA-NEWS. November 30, 2012. The amount of life insurance contracts signed by the life insurance company Bonum Publicum over the nine months of this year went up by 4.5 per cent year on year, whereas the total life insurance market witnessed a recession of 7.4 per cent, according to the data released by the Bank of Lithuania. The total amount of contracts signed by Bonum Public in January-September reached LTL 13.3 million, reported the press-centre of Ukio Bankas. 

According to non-audited data, during the nine months of this year the company earned LTL 1.32 million in profit, which is six times above the respective figure of 2011 (LTL 217 thousand). Great popularity was seen by the classical insurance products with guaranteed interest offered by the company – over the three quarters of this year their sales jumped by more than 30 per cent as against the same period last year.

‘The main reasons behind the growth of business volumes and profitability were the flexibility of the company’s insurance contracts and supply of new products considering clients’ decreased tolerance to risk: last year we expanded the range of classical life insurance products with guaranteed interest. This step enabled us to attract new clients and successfully increase sales despite a 9 per cent fall of the total life insurance market during nine months of this year,’ Rasa Vasiliene-Vasiliauskiene, Bonum Publicum Director said.

As maintained by Bonum Publicum Director, clients also appreciated the flexibility of services as it is possible to amend the terms and conditions of the insurance contract upon the change of the policyholder’s life situation and needs: to include new insured persons in the insurance contract, e.g. the spouse or a newborn, increase insurance amounts, select additional insurance objects, change the amount of insurance premium, etc. In case an individual badly needs money part of the accrued capital may be withdrawn during insurance contract validity without terminating the insurance contract. If the policyholder’s financial situation changes, it is possible to reduce the amount of insurance premium or suspend payment of insurance premiums with the insurance contract remaining in force.

The company guarantees an annual interest of 2 to 2.5 per cent on classical investment insurance products.

Ukio bankas owns a controlling interest of 100 per cent in the life insurance company Bonum Publicum. The risks assumed by Bonum Publicum are reinsured at the world’s largest reinsurance company MUNICH RE.