Citadele Life, a subsidiary of the Citadele Bank, handled 53% of all new life insurance premiums in Latvia during the first quarter of this year in terms of premiums linked to investment funds or market-related new premiums. Thanks to these good results, Citadele Life increased its market share in the area of life insurance policies with accumulated savings from 9.7% on December 31, 2011, to 12% on March 31, 2012.
Citadele Life Chairman of the Board Uģis Vorons was asked about reasons for this rapid development: “Our goal is to be among the leading participants in the life insurance market, particularly emphasizing policies with accumulated savings that are linked to investment funds. We always make sure that we offer the best options for our services. We basically offer funds managed by Citadele Asset Management, which is one of the leading fund managers in the Baltic States and has won international recognition. We recently learned that the internationally renowned fund research company Lipper has presented the Citadele Eastern European Bond Fund-USD with the Lipper Fund Award 2012 for the best consistent, risk-adjusted performance over three years in the Emerging Europe Bond Fund category.”
During the first quarter of 2011, Citadele Life controlled 12% of the Latvian market for new premiums linked to the market, but during Q1 of this year, that percentage rose to 53%. When it comes to new premiums in both segments (market-linked agreements and insurance with a guaranteed interest rate), Citadele Life controlled 5.7% of the market during Q1 in 2011, while in Q1 2012 that percentage was up to 33.5%.
“Clients who save up larger sums of money usually choose life insurance policies with accumulated savings, and they sign agreements with linkages to investment funds,” says Uģis Vorons. “Clients have a better understanding of finance markets, and they are prepared to accept short-term shifts in value so as to earn more than current guaranteed interest rates afford in future.”
Citadele Life is a subsidiary of the Citadele Bank and provides life insurance policies with accumulated savings. The company also offers life and accident insurance, as well as life insurance for borrowers.
The company’s registered and financed equity capital amounts to LVL 3 million.
Citadele is local bank in Latvia that offers banking, financial and asset management services. Citadele Group is represented in the local Latvian market and 10 other countries. It is the only collaboration partner of American Express® in Latvia and Lithuania who is entitled to issue American Express credit cards. Citadele Bank’s vision is to become the most valuable local financial group in the Baltic States. Presently, 75% of its shares are owned by Privatization Agency and the European Bank for Reconstruction and Development possesses 25% plus one of its shares.
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