SEB Life and Pension Baltic SE Estonia Branch Summary 2021

The life insurance market in Estonia is showing an upward trend, with 29 868 new life insurance contracts taken out in Estonia in 2021 (2020: 24 086). Based on the statistics of SEB Life and Pension Baltic SE Estonia branch, 33.8% of all life insurance contracts concluded on the Estonian market, i.e., 10 091 new life insurance contracts, were taken out at SEB. This is 24% more than a year before. At the same time, the number of supplementary insurance covers increased by 2% compared to 2020.  

The largest number of insurance contracts is still taken out to cover risks related to loan obligations: last year we concluded 7 108 SEB Loan Protection insurance contracts (2020: 5 720). 

We are constantly raising our customer awareness and contribute to improving the service quality. We made the health assessment process, required for the conclusion of life insurance contracts, more customer-friendly, simpler and quicker, and made insurance available also in the Internet Bank. The results of our work and the satisfaction of our customers are demonstrated by the general market statistics: to be specific, only 5.2% of SEB's insurance contracts were terminated before maturity, which is half the market average (8.3%).  

Insurance indemnities 
In 2021, our customers were involved in 767 insured events. In total, we paid out over 1.5 million euros (1 577 700 euros) in insurance indemnities for these events. We paid the most indemnities for temporary loss of capacity for work, caused by accidents, but the largest indemnities were paid out in the event of death of the insured. 

We refused to pay the indemnity in 5.87% of events. The main reason for the refusal was that the event did not meet the insurance conditions. 

Saving for pension and payout agreements 
As at 31 December 2021, 110 164 customers saved for pension in SEB II pillar pension funds and 33 269 customers had invested further in their future through our III pillar pension funds and life insurance saving solutions. 

Last year was also a year of pension reform, where we were able to talk more than usual about the pension as an important long-term investment into the future. As in life insurance, we have been working to raise customer awareness and confidence also in relation to pensions – both in SEB's pension solutions, which have demonstrated improving performance (see last year's Summary of SEB pension funds), as well as in the pension system as a whole. 

Calculating the additional profit 
At the end of 2021, we had 23 150 long-term saving contracts, of which 14 659 were related to the calculation of additional profit. As concerns additional profit, SEB Life and Pension Baltic SE Estonia branch decided the following: 

• No additional profit is recognised on contracts with a non-deductible share of profit, as the low interest rate environment persists and therefore no additional distributable profit arose in 2021.
• For contracts with deductible additional profit, the additional profit shall be reduced. The investment return of 2021 was affected by low interest rate level. Therefore, the net result on the investment portfolio of the contracts with deductible additional profit in 2021 was EUR -1 822 782, of which EUR -1 756 615 will be covered by SEB Life and Pension Baltic SE and EUR -66 167 will be distributed between the contracts with deductible share of profit according to the procedure for calculating the additional profit.
• For contracts with guaranteed additional profit, we guarantee the additional profit as previously agreed.  

 
Information related to the calculation of additional profit will be sent to the customers personally. 

For further questions call us on SEB insurance line 665 8020 or write to us at kindlustusleping@seb.ee.