MONTENEGRO: intense battle among the top market ranking companies

16 August 2012 — Daniela GHETU
montenegro-statisticsThe Montenegrin insurance market ended the first half of 2012 with a 6.37% growth in terms of GWP, to EUR 34 million. With few exceptions, all insurance lines recorded a positive dynamic, in spite of a difficult economic environment which leaded to rising unemployment rate - up by 1.5pp as compared to July 2011, to 12.65% -, and decreasing average wage of the Montenegrin citizens.

As the structure of the market portfolio registered only marginal changes compared to 2011, motor insurance is still the dominant line of business, with an almost 53% market share. Out of this overall figure, MTPL represents more than 44% and posted in 1H2012 one of the highest growth rates in the market, of 7%, to EUR 15.07 million. On the other hand, Motor Hull remains at a very low level, holding just a 8.6% market share (down from 8.97% in 1H2011) and reporting a slower than average development rate, of 2.35%, to EUR 2.94 million.

Property insurance lines showed mixed results in 1H2012: while on the "fire and allied perils" class a decrease in GWP of 3.6% was recorded, on the "damages to property" line, underwriting grew by 20%. All in all, the two lines of business have almost equal shares in the portfolio, of about 6%.

Accident insurance is the third significant non-life line of business, with 10.5% share in the portfolio and recorded the second best performance in terms of growth in 1H2012: 11%.

The underwriting in life insurance remained on the positive path, although at a slower pace than the market average. With a growth of 3.26%, GWP for life classes reached EUR 4.38 million.

LOVCEN Insurance, member of the Slovenian group TRIGLAV, is the leader market, with a 41% market share, although it lost in the last 12 months about 9pp of its weight, mostly on behalf of its main competitors SAVA Montenegro, DELTA Generali Insurance and UNIQA Non-Life Insurance. The change came as a result of the negative change registered by the market leader in GWP, of almost 14% y-o-y, while its competitors reported significantly growing business levels.

Access www.xprimm.com and download the 1H2012 Montenegrin insurance market statistics.

Market portfolio:
  • Gross written premiums
  • Growth rates
Market rankings (Total, life and non-life insurance):
  • Gross written premiums
  • Market shares 
  • Growth rates

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