Research and Markets: Lithuania Insurance Report 2011

DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/8d30aa/lithuania_insuranc) has announced the addition of the "Lithuania Insurance Report 2011" report to their offering.

Lithuania Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Lithuania's insurance industry.

The time when Lithuania was seen as a promising growth market for insurers has long past. Several foreign groups, including Suomi Mutual, Swedbank and the Vienna Insurance Group, have scaled back their operations or exited the country completely. As is the case in Latvia and Estonia, the brutal economic contraction in the wake of the global financial crisis has produced massive challenges for the insurers. According to the Insurance Supervisory Commission (DPK), non-life and life premiums contracted in H110 compared to H109, and in H109 from H108.

Worse, the fall in premiums appears to have been consistent across virtually all insurance lines. The market for voluntary motor insurance (CASCO) has fallen by well over half since 2008. Compulsory motor third-party liability (CMTPL) the most basic of non-life insurance lines, continues to contract. The market for marriage and birth assurance appears to have virtually disappeared. The only lines where premiums have held up in H110 compare to H109 were typically small and speciality lines such as suretyship. Even there, though, premiums are lower than they were two years earlier.

It is a sign of the strength of the multinationals supporting the Lithuanian insurers and the efficacy of the DPK that all the insurers have survived the crisis. Challenges last year included losses from the violent storms that swept Lithuania in mid-2010, official criticism in relation to the insurers responses to claims and, given the fall in premiums, lower profits.

Despite the positive contribution of stronger export growth in Q210, Lithuania's economy was locked in internal devaluation, and we see little to suggest that the domestic demand situation is improving. We have revised down our 2010 real GDP growth estimate from -1.3% to -1.5%, and see growing risks to our 3.2% real GDP growth forecast for 2011 from a deteriorating external outlook. Nevertheless, we tentatively forecast a recovery in the insurance sector from 2011.

Premiums in 2010 amounted to an estimated LTL911mn. This includes non-life premiums of LTL657mn and life premiums of LTL254mn. In 2015, the corresponding figures are forecast be LTL2,044mn, LTL1,549mn and LTL495mn. In terms of the key drivers that underpin our forecasts, we expect non-life premiums penetration to rise from 0.70% of GDP in 2010 to a still low 1.21% in 2015. We forecast for life density to rise from US$28 per capita in 2010 to US$56 in 2015.

Key Topics Covered:

The Sector At A Glance

SWOT Analysis

Central And Eastern European Markets Overview

MetLifes Acquisition Of ALICO

Projections And Forecasts

Country Update

Insurance Business Environment Ratings

Regional Context

Analysis Of Competitive Conditions

Company Profiles

Country Snapshot: Lithuania Demographic Data

BMI Methodology

Companies Mentioned:

• Aviva
• ERGO
• Eureko
• Generali
• GRAWE
• Groupama
• MetLife
• RSA
• Vienna Insurance Group

For more information visit http://www.researchandmarkets.com/research/8d30aa/lithuania_insuranc

Research and MarketsLaura Wood, Senior Manager,
[email protected]
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Source: Research and Markets