STATISTICS: Bank of Lithuania, 3Q2014: Rapid life-assurance growth, moderate non-life insurance expansion and record-high profits

Over the three quarters of 2014, the Lithuanian insurance market, in terms of premiums written, increased by 6.3% and amounted to almost LTL 1.5 billion (EUR 433 million). Such growth was driven by rapid expansion of the life assurance sector. The non-life insurance sector was distinguished by high competition and more modest growth, the Bank of Lithuania reported.

"The double-digit growth momentum gained by the life assurance market this year retains a rapid growth rate, non-life insurance continues to grow, while in both insurance classes new records are hit," says Mindaugas Salcius, Deputy Director of the Prudential Supervision Department at the Supervision Service of the Bank of Lithuania.

The following report was released by the Bank of Lithuania.

In the first three quarters of 2014, the life assurance undertakings registered in Lithuania and branches of life assurance undertakings of other European Union Member States established in Lithuania wrote insurance premiums that amounted to LTL 489.2 million, i.e. 16.9% more than in the same period last year. The amount of premiums written within the largest life assurance class — unit-linked life assurance — increased by 15.9% (to LTL 332.2 million), but the in the area of unit-linked life assurance, the amount of single premiums jumped by 51 per cent — to LTL 64 million. According to M. Salcius, such growth shows that with the low-interest rate environment, insurers look for investment alternatives and tolerate risk more.

In the non-life insurance sector, expansion was more moderate: premiums written increased by 1.8 per cent and exceeded LTL 1 billion. The changes in this market were driven by intense competitiveness — the fees on a number of non-life insurance types decreased, this being the reason why the volume of the non-life insurance group increased slower.

Nevertheless, the expansion of the insurance market, although slightly slower than in previous periods, broke new records. For example, in the largest group of the non-life insurance class — motor third party liability insurance — the amount of premiums written in January-September 2014 increased by 0.8%, reaching LTL 360.5 million and was the largest over the history of Lithuania's insurance market. The volume of health insurance was also at a record high in the same period — LTL 94.8 million. In the life-assurance class, a record-high was reached by the amount of premiums written in the case of survival — LTL 118.4 million.

The insurance undertakings registered in Lithuania earned LTL 84.9 million in profits in the three quarters of 2014. This is the best January-September result over the past ten years.

Access and download the 3Q2014 Lithuanian insurance market statistics.

Market portfolio (in EUR and LTL):
  • Gross written premiums
  • Paid claims
  • Growth rates
Market rankings (GWP/Claims/Market shares/Growth rates - in EUR and LTL):
  • Life insurance ranking
  • Non-life insurance ranking

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

LITHUANIA: Property insurance disputes raised by 28% in 2018

The number of disputes between insurers and customers has raised mainly due to the low degree of customers' understanding over their insurance products, an analysis over the property insurance market recently published by Bank of Lithuania says.


LITHUANIA: decreasing prices for all types of transport insurance

In 3Q2018, prices of compulsory MTPL insurance scaled down, while the entire insurance market grew by 13%. Having come into force in October, significant amendments have strengthened consumer protection within the insurance market, Bank of Lithuania stated in a press release.



Bulgaria: Boiko ATANASSOV appointed as FSC's head

The Parliament of the Republic of Bulgaria appointed Boiko ATANASSOV as Chairperson of the Financial Supervision Commission (FSC) on March 15, with 134 votes in favour, none opposed or abstained.



Conclusions: TBILISI - the first Georgian International Insurance Conference

Today takes place in Tbilisi the first Georgian International Insurance Conference, an event that will put under scrutiny the current status and the future development perspectives of the local market, in an attempt of identifying the main growth opportunities. The forthcoming launch of the mandatory MTPL system is the most important topic on the agenda, as this new line of business has the potential to provide for a significant growth, but also to become a market disruptor.


Motor insurance - becoming more financially efficient and consumer friendly

Under the strong pressure put by the technological evolution, the motor insurance business is rapidly changing, both in operational terms and, most visible, in the way insurers are interacting with their customers. Step by step, the insurers' relationship with customers evolves from simply indemnifying insureds for the losses suffered because of road incidents, to helping them prevent incidents and rapidly recover after the accidents that couldn't be avoided.


See all