Published: 2020-02-18 07:00:00 CET
LHV Group
Company Announcement

LHV Group plans to establish a non-life insurance undertaking

LHV Group plans to establish a non-life insurance undertaking called AS LHV Kindlustus, 65% of which would belong to AS LHV Group, and 35%, similarly to the ownership structure of AS LHV Finance, to persons related to stores operating under the Euronics brand. Prerequisites for commencing the operations of the insurance undertaking include receiving a decision to permit concentration from the Competition Authority, concluding an agreement between shareholders, establishing the company, and receiving an activity licence from the Financial Supervision Authority. The process is estimated to take about one year.

LHV Kindlustus plans to focus on the Estonian market. Clients of the insurance undertaking will consist primarily of the clients of LHV Pank and Euronics and, to a lesser extent, other clients as well.

Insurance products will mainly focus on products aimed at retail customers, which make up the majority of the Estonian insurance market. The main insurance products for clients of LHV Pank will include motor own damage insurance, motor third party liability insurance, home insurance, and property insurance for small and medium-sized enterprises, and other types of insurance to a lesser extent. The main insurance products for the clients of Euronics will be additional warranty and purchase protection insurance.

The following are planned to be used as sales channels by the insurance undertaking: client executives and e-channels for the credit products of LHV Pank, client consultants of Euronics stores, client executives of the insurance undertaking, and other insurance brokers and insurance intermediaries.

While in the case of banking, local banks in Estonia have started to become more active instead of foreign banks in recent years, then this type of change has not yet occurred on the insurance market. The majority of the Estonian insurance market belongs to foreign insurance undertakings. As a local insurance undertaking, LHV Kindlustus plans to stand out for clients with its simplicity and speed, both in concluding insurance contracts and in processing claims, primarily through e-channels. The aim of the insurance undertaking is to achieve the role of innovation and quality leader on the market, similarly to LHV’s other business fields.

Upon commencing insurance activities, LHV Kindlustus plans to begin offering several types of insurance coverage to LHV Pank and Euronics. This synergy would guarantee the insurance undertaking with enough insurance premiums to cover damages and costs, and achieve profitable operation immediately upon the commencement of insurance operations after receiving the respective activity licence. From establishing the company until receiving the activity licence, LHV Kindlustus will bear costs and generate loss.

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 440 people. LHV’s banking services are used by more than 207,000 clients, and pension funds managed by LHV have more than 176,000 active clients.


Priit Rum
Communication Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee