In 2008, Lithuanian insurers accounted a EUR 24.76 million net profit, in decrease by 35% compared to 2007, according to preliminary results of Lithuanian Insurance Supervisory Commission (ISC).
Last year, out of seventeen companies, five insurers have ended the year with loss.

"The effect of the global crisis on the Lithuanian insurance market's financial positions is insignificant, thus, the insurance market solvency is much bigger than it was expected", Ramunas BARAVYKAS, Vice director of the Insurance Supervisory Commission, stated.

"At the same time, in 2008, insurance companies' investments increased by 8% compared to 2007, totalizing EUR 682.05 million, out of which 60% were invested in state bonds", Ramunas BARAVYKAS added.

BARAVYKAS estimates that in 2009, the Lithuanian insurance market will shrink by 14-16%, as a result of economy recession and of financial market decline.

ISC officials explain that insurers should change their development strategies, should reduce operational costs and should segment all business lines in order to quit unprofitable market segments.