On 29 December, the Management Board of Estonian Finacial Supervision and Resolution Authority (FSA) decided to grant AS LHV Kindlustus authorisation to operate as a non-life insurance provider.
“In Estonia, LHV wishes to grow. With obtaining the authorisation of the FSA and with the capitalisation of the company all preconditions have been filled in order to commence operations of the new business line and to repeat our success also in the field of insurance,” said Madis Toomsalu, CEO of LHV Group and Chairman of the Supervisory Board of LHV Kindlustus.
“Preparations for launching the non-life insurance undertaking and entering the market with products suitable for customers have gone according to plan. Relying on the existing customers of LHV Pank and Euronics, our goal is to quickly start offering a clear alternative on a market largely occupied by foreign capital. LHV is going to bring a similar change to the insurance market as it has to banking,” said Jaanus Seppa, CEO of LHV Kindlustus.
AS LHV Kindlustus is a non-life insurance undertaking belonging to the AS LHV Group consolidation group. There are currently 11 people working in LHV Kindlustus and the team will continue to grow. Together with Jaanus Seppa also Tarmo Koll is a Member of the AS LHV Kindlustus Management Board. The Members of Supervisory Board of the the company include Madis Toomsalu (Chairman), Erki Kilu, Jaan Koppel and Veiko Poolgas.
The main business of the undertaking will be offering non-life insurance products. Firstly, in Q1 of 2021, LHV Kindlustus will start offering home insurance and in Euronics’ stores also extended warranty insurance. In a year, the company will also launch motor-, casco-, travel- and personal accident insurance products, covering most of all non-life insurance product range on the market.
With the insurance undertaking LHV provides additional value to its retail clients, and, more broadly, improves insurance opportunities on the Estonian market. Offering insurance protection to the clients of LHV and Euronics will create a synergy that guarantees profitable operation immediately upon the commencement of insurance operations. In longer terms the target of the company is to earn a 20% return on equity. A more precise financial forecast of the subsidiary will be disclosed with the Financial plan of LHV Group in February.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank and LHV Varahaldus. LHV employs over 500 people. LHV’s banking services are used by 247,000 clients, and pension funds managed by LHV have more than 180,000 active clients. LHV’s UK branch offers banking infrastructure to 140 international financial services companies, via which LHV’s payment services reach clients around the world.
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