The insurance market recorded a year-on-year 6.4% increase over the first half of this year in terms of premiums written, with its volumes reaching record heights - EUR 312.3 million. "Growth in life insurance was less robust than a year ago, but this branch remains the main engine of growth within the entire insurance market. The non-life insurance market boosted as well, although the most numerous in terms of contracts concluded, the motor third party liability (MTPL) insurance class did not avoid a decline", says Mindaugas SALCIUS, Deputy Director of the Prudential Supervision Department of the Supervision Service at the Bank of Lithuania.
The Board of the Bank of Lithuania decided to issue an insurance business license for the private limited liability insurance undertaking COMPENSA Vienna Insurance Group, UADB in the process of foundation, which entitles to engage in the activities of insurance classes within the non-life insurance branch and of compulsory insurance, states a press release of the Lithuanian central bank.
In the first quarter of 2015, the Lithuanian insurance market grew by 6.9% in terms of premiums written year on year, and amounted to EUR 150.7 million. This is the highest performance of premiums written over the first quarter in the history of the domestic insurance market.
Latvia's non-life insurer Balta, controlled by the Polish insurance group since last November, will be able to take over the local business of PZU Lietuva.
American International Group (AIG), one of the world's biggest insurance companies, has opened a service center in Vilnius to service insurance policies, manage claims and oversee payouts.
In 2014, insurance undertakings registered in Lithuania, according to unaudited data, earned EUR 24.1 million (LTL 83.2 million) of profits, a year-on-year increase of 36$. The highest profits were generated by the insurance activity; however, the overall result was significantly enhanced by profits from the investing activity. "The result of the previous year is almost record high - higher profits were only earned in 2007. The results varied significantly across insurance branches though - the return on the insurance activity within non-life insurance was almost 6 times lower than that of life assurance undertakings," says Mindaugas SALCIUS, Deputy Director of the Prudential Supervision Department of the Supervision Service at the Bank of Lithuania.
"ERGO Insurance" signed a long-term cooperation agreement with the
Venture Capital Fund Nextury Ventures in Lithuania, which invests in
business start-ups and high-potential business ideas. With the help of
the Nextury Ventures team, ERGO will search for ideas, which could turn
into innovation in the insurance field. According to ERGO
representatives, the decision to use start-ups were determined by a
general need for fresh winds of change and progress in the insurance
business in Lithuania.
The results of the Lithuanian Branch of the life insurance company COMPENSA Life Vienna Insurance Group SE have been steadily growing for three years consecutively. Compared to 2013, the total sum of underwritten life insurance and health insurance premiums increased by 35% and amounted to EUR 24 million (LTL 83 million).
Driven by a recovery in the economy and an almost 7% increase over 2014, the insurance market this year is likely to maintain a similar growth rate, forecasts the Bank of Lithuania.
Payouts to participants of pension funds are increasing every year in
Lithuania. Participants of pension funds, or their relatives who
inherited the rights to payouts, were paid EUR 14.3 million in 2014,
The Polish PZU, one of the largest CEE insurance groups, announced, on February 3rd, that it agreed to sell 99.88% shares in its Lithuanian subsidiary PZU Lietuva to Norway 's GJENSIDIGE Forsikring for EUR 54 million, to complete last year's EUR 360 million takeover of RSA Group's assets in Baltic States. PZU said that the final price may change and will be adjusted for a difference between from the valuation date (September 30, 2014) to the transaction closing.
According to website vz.lt, US insurance giant AIG is going to establish
400 new jobs in Vilnius by the end of 2015. AIG customer service centre
in Vilnius will provide services to foreign markets, reports LETA/ELTA.
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.
On November 17th, Polish Business Awards were handed out for the third
time in Lithuania in 2014. Trade and Investment Promotion Section of the
Polish Embassy is organising Polish Business Awards, informs LETA/ELTA.
For the third year in a row, the winners of Best Employers in Lithuania
were announced. In 2014, the Best Employers awards went to the digital
advertising software company Adform, Cramo, a service company
specialising in equipment rental services, and the insurance company
Lietuvos Draudimas, informs LETA/ELTA.
Over the period of 3 years the non-life insurance company BTA registered
almost 13,000 car accidents in the three largest cities of Lithuania as
58% were registered in Vilnius, 27% - in Kaunas and 14% - in Klaipeda,
In the first half of 2014, the Lithuanian insurers wrote insurance premiums amounting to LTL 1,013.7 million (EUR 293.6 million), a year-on-year increase of 7.8%, but still 2.9% less than in the first half of 2008, when the volume of Lithuania's insurance market was the highest, Bank of Lithuania informed. According to the half-year review published by the market authority, the life insurance market grew by even 18.3% (to LTL 331.0 million / EUR 95.9 million), while the non-life insurance market was up by 3.4% (to LTL 682.8 million / EUR 197.7 million) over the year.
Eastern Europe's largest insurer, Poland's PZU, has agreed to spin off
part of its Lithuanian business to assuage competition concerns and pave
the way for its purchase of Lithuanian rival Lietuvos Draudimas.
The Lithuanian League ( LKL ) and insurance company IF have become partners ahead of the 2014-15 season. Both companies signed a cooperation agreement under which the League will receive assistance. LKL President Remigijus Milasius is glad that If joined the League, as the insurance company has earned international recognition, and says he's convinced this will be a fruitful cooperation. "I am glad that there are companies, such as IF, which are willing to contribute to the promotion of sports".
Poland's insurance group PZU, which has reached a 360-million-euro deal
to buy RSA's business in the Baltics and Poland, so far failed to
convince the Lithuanian Competition Council that its planned takeover of
the country's leading non-life insurer Lietuvos Draudimas (Lithuanian
Insurance) will have no negative effects on the market, the business
daily Verslo Zinios reported on Wednesday.