Lithuanian Central Bank: Local insurers posted H1 profits of EUR 27.7 million: 6 insurers were profitable, 2 suffered losses

14 October 2021 — Andrei Victor
At the end of June 2021, Lithuanian domestic insurers posted aggregate profits of EUR 27.7 million (vs. EUR 27.5 million in June 2020), while the assets managed by domestic insurers remained stable at ~ EUR 1.7 billion. Life insurers reported net profits of EUR 9.3 million (vs. EUR 8.5 million a year before), the remaining EUR 18.4 million being accounted by non-life insurance companies (vs. EUR 19 million).

The representatives of Lithuanian Central Bank pointed out in the half-year "Lithuanian Insurance Sector Overview" that during the period 6 insurers were profitable, 2 suffered losses. At the same time, the aggregate profit posted by insurance brokers was EUR 6.4 million, 79 companies being profitable.

At the end of the first half of the year, 19 insurers provided insurance services in Lithuania: 8 domestic insurers (4 life and 4 non-life specialized companies) and 11 EUR branches (4 life and 7 non-life), and 101 insurance brokerage companies.

Lithuanian insurance market posted half year y-o-y GWP growth rate of 6.5%, exceeding in absolute values half million euro, according to the half-year figures published on the Central Bank's website. The life insurance segment expanded by 7.1% y-o-y to EUR 151 million due the 11.4% increase posted by the index-linked and unit-linked products, while in case of non-life segment, Lithuanian insurers GWP expanded 6.3% y-o-y to EUR 350 million, the growth of non-life insurance premiums being strongly determined by casco and property insurance volumes growth, while the amount of MTPL premiums continued to decrease.

Click here to download the H1 2021 Lithuanian insurance market statistics.

"As the country's economic indicators rise, we see a recovery in the insurance market, especially in the non-life segment. It is true, the amount of premiums for the most numerous types of insurance - as MTPL insurance, continued to decrease. The growth in the number of new unit-linked life insurance contracts shows the interest of the population in investment products," said Jekaterina GOVINA, Director of the Financial Market Supervision Service.

For the entire 2021, the Bank of Lithuania announced in February it expects a moderate growth of the insurance market this year, by 3% to 5%, up to a total EUR 997 million in GWP. "While the non-life business is expected to recover from the 2020 fall, life insurance will grow at a slower pace than last year". Last year premiums totaled EUR 955 million, up by 1% y-o-y.

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