Summary of 2022 of the Estonian Branch of SEB Life and Pension SE

The Estonian life insurance market has remained at the same level compared to previous years – 29,297 new life insurance contracts were concluded in Estonia in 2022 (in 2021: 29,868). According to the statistical data of the Estonian branch of SEB Life and Pension Baltic SE, 32% of all life insurance contract concluded in the Estonian market last year, i.e. 9,374 new life insurance contracts, were concluded at SEB. This is 7% less than in the year before. Even though the number of contracts concluded has dropped a bit, the customers choose more additional options of insurance cover – the number of additional options of insurance cover increased by 3.5% compared to 2021.

The majority of the insurance contracts are still being concluded to cover the risks related to loan obligations: last year, we concluded 7,040 Loan Protection Insurance contracts at SEB (in 2021: 7,108).

We are constantly working on increasing the awareness of our customers and contributing to improving the service quality. The results of the work done and the satisfaction of our customers are also evident from the overall statistics of the market: namely, just 4.6% of the insurance contracts of SEB were terminated before the expiry date, which is significantly lower than the average of the market (7.7%).

Insurance indemnities

In 2022, we paid insurance indemnities for 896 insurance cases (in 2021: 1,120). In total, we paid indemnities in the amount of more than 1.5 million euros (1,506,726 euros). The majority of the cases compensated for involved temporary incapacity for work due to an accident, but the highest indemnities were paid in the case of the death of the person insured.

The highest number of loss notices were submitted due to mild injuries last year. The average amount of all indemnities paid was 1,682 euros (in 2021, the average was 1,409 euros). The average indemnity in the case of death was 13,600 euros, while the highest indemnities paid amounted to 121,000 and 68,000 euros. The average indemnity paid for a critical illness was 3,500 euros last year.

We indemnified 95% of all loss events to the customers. The main reason for a refusal to pay the indemnity was non-compliance of the event with the terms and conditions of insurance – for example, the customer had selected accident protection in the contract, but applied for the indemnity for an illness.

Saving for a pension

At SEB, it is possible to save for a pension via second- and third-pillar pension funds managed by AS SEB Varahaldus via the third-pillar insurance solutions of the Estonian branch of SEB Life and Pension Baltic SE.

Last year, the shares of AS SEB Varahaldus were transferred from AS SEB Pank to SEB Life and Pension Baltic SE. The change did not affect the customers, products, or employees of SEB, but accumulated the expertise and development resources of the pension sector to increase the quality of the solutions provided, which is expected by the customers from SEB.

As at 31 December 2022, a total of 103,905 customers were saving their pension funds in the second-pillar pension funds of SEB and 34,388 customers were also investing in their future via third-pillar pension funds and life insurance savings solutions.

Last year, SEB Varahaldus introduced a new third-pillar index fund, which reduces the climate footprint, the SEB Climate Future Pension Fund Index. See the Summary of the pension funds of SEB of last year.

Calculation of the additional profits of life insurance savings agreements

At the end of 2022, we had 20,805 long-term saving contracts, of which 11,933 were related to the calculation of additional profit. As concerns additional profit, SEB Life and Pension Baltic SE Estonia branch decided the following in 2022:

• No additional profit is recognised on contracts with a non-deductible share of profit, as the profitability of the investment portfolio has been lower than the guaranteed interest rate in the previous periods.
• For contracts with guaranteed additional profit, we guarantee the additional profit as previously agreed.
• The additional profit is reduced in the case of contracts with a deductible share of profit. The investment result of 2022 was affected by low interest rates. Therefore, the net result of the investment portfolio of the contracts with a deductible additional profit was –8,258 thousand euros in 2022, of which –8,184 will be covered by SEB Life and Pension Baltic SE and –74,281 will be divided between the contracts with a deductible share of profit pursuant to the procedure of calculating additional profit.

We will send the information concerning the calculation of the additional profit to the customers individually.

If you have any questions, please call the insurance line of SEB at 665 8020 or send an e-mail to the following address: kindlustusleping@seb.ee. The customer service is open on weekdays from 9 a.m. to 5 p.m