Company briefs - 2010-04-28

Insurance company Balta last year collected 41.5 million lats (59.2 million euros) in premiums in Latvia, whereas the company’s profit reached 4.2 million lats, reports LETA. The company emphasizes that the profit was achieved as a result of upgrades to the risk management system, well thought-out investments and stabilization of prices in the insurance-related market segments. Balta board chairwoman Tara Kneafsey points out that the Latvian insurance market went through the most rapid contraction since the restoration of Latvia’s independence. This also affected Balta’s results, and the amount of premiums dropped 31.5 percent from 2008.

Finnish dairy group Valio Eesti is going to invest 250 million kroons (16 million euros) in development of a production unit in Estonia, Valio Laeva Meierei, reports LETA. The value of the construction is expected at 70 million kroons. As a result of the investment program intended for three years, the production capacity of Laeva Meierei will double. Valio plans to take on processing of up to 60 percent of all raw milk produced in Estonia. Kari Finska, the CEO of Valio Eesti, said that Valio’s objective is to become Estonia’s largest dairy group. At present Valio is second largest by turnover in Estonia.

The head of Estonian national airline Estonian Air Andrus Aljas said that the firm suffered 10 to 50 million kroons (3.2 million euros) in damages due to the Icelandic volcano ash cloud, writes Postimees Online. Aljas said that the main reason for this is the fall of consumer confidence which resulted in a fall in the sale of tickets. The company failed to service 8,000 passengers while the air space was closed for flights. Aljas was yet unable to say how many of them were returned their ticket cost, since a lot of claims from travel agencies come with a delay.