LITHUANIA: NORDEA set to sell the insurance business to ERGO

25 September 2012 — Vlad BOLDIJAR
LITHUANIA: NORDEA set to sell the insurance business to ERGO
nordeaNORDEA Life Assurance, a Finland-based provider of life insurance and private pension, part of the financial group NORDEA, is planning to sell its insurance business in Lithuania to the Germany-based insurance group ERGO Versicherungsgruppe.

According to representatives of the company, all holders of issued contracts have two months to submit their objections in and they have the right to end their contracts.

Gross written insurance premiums in Lithuania dropped by 1.2% in the first six months of 2012, triggered by an 11.2% decrease in life insurance policies, according to the financial figures recently published by the Central Bank of the Republic of Lithuania.

On the life insurance segment, SWEDBANK Life Insurance SE - 25% market share, SEB Gyvybes draudimas - 19.4% (member of SEB Bank Group - the largest commercial bank in Lithuania) and AVIVA Lietuva - 18.5% - are the top three companies among the 11 life insurers on the market.

ERGO Life Insurance SE ranked 5th (9.6% market share), while NORDEA Life Assurance Finland ranked 10th (0.6%), according to the Central Bank, which supervises the entire financial industry, including commercial banks and other credit and payment institutions, securities and insurance companies.