The Lithuanian market

According to the Lithuanian central bank’s data, in 2013, the gross written premium of non-life insurance companies was LTL 1.3 bn and increased by 8.7% compared with the previous year. The market grew primarily as a result of:

  • the 10.4% increase in TPL motor insurance premiums;
  • the 7.1% increase in motor own damage insurance premiums;
  • the 9.0% increase in accident and health insurance premiums.

The increase in the value of motor insurance was mainly due to the higher prices of policies and the increase in company car fleets (due to the recovery in the economy). However, the expansion of the accident and health insurance market was related to the increase in interest in insurance of this type.

The structure of non-life insurance in 2013 was dominated by motor insurance, which accounted for 58.8% of the gross written premiums, whereby the share of TPL motor insurance of vehicle owners was 35.5%. Second position was taken by non-life insurance with a 19.3% share of the premiums.

Twelve non-life insurance companies were operating in Lithuania at the end of 2013 (including 9 branches of insurance companies registered in another EU member state). The largest insurance company in Lithuania in terms of total gross written premiums for non-life insurance is Lietuvos Draudimas. It had a 31.1% market share in 2013. The next places were taken by BTA – 14.2% and PZU Lietuva – 13.6%.

According to the Lithuanian central bank’s data, the gross written premium of life insurance companies in 2013 was LTL 626.0 m which constituted 8.9% compared with 2012. Market growth primarily arose from the increase in insurance with a single premium (23.8%) while insurance with a regular premium increased by 6.8%.

The structure of life insurance was dominated by unit-linked type insurance, representing 70.1% of the value of the premium. Traditional life insurance accounted for 23.7% of the total premium.

Nine companies were operating in the life insurance sector at the end of 2013 (including 4 branches of insurance companies registered in another EU member state). The Lithuanian life insurance market is highly concentrated. At the end of December 2013, the share of total gross written premiums of the three largest life insurance companies amounted to 62.5%.

The largest life insurance company in Lithuania in terms of total gross written premiums for life insurance was Swedbank, which had a 21.9% market share. The next places were taken by Aviva (20.3%) and SEB (20.3%).