BMI View: Lithuania is one of the smaller European insurance markets we monitor, however the sector has been the centre of considerable activity over recent quarters , as multinational firms, including those from neighbouring Scandinavian and Eastern European countries , have taken advantage of opportunities to invest. A relatively bullish outlook for Lithuania's economy should lead to further interest from potential new entrants , as household incomes rise and consumer and corporate spending increase. While the market is increasingly consolidated, there remain a number of smaller indigenous providers who may present a window for multinationals to gain a foothold in the market. Those already present will be looking to grow their market share through new acquisitions, allowing them to leverage their already well-developed distribution networks.
|BMI/Bank of Lithuania|
|Gross life premiums written, EURbn||0.18||0.19||0.19||0.20||0.21||0.21||0.22||0.23|
|Gross life premiums written, EUR, % y-o-y||8.9||3.2||2.4||3.5||3.6||3.3||3.3||3.4|
|Gross life premiums written, USDbn||0.24||0.25||0.21||0.21||0.23||0.24||0.26||0.27|
|Gross life premiums written, USD, % y-o-y||13.2||4.8||-15.9||0.6||6.5||8.0||7.8||3.4|
|Gross non-life premiums written, EURbn||0.38||0.31||0.34||0.36||0.38||0.40||0.42||0.44|
|Gross non-life premiums written, EUR, % y-o-y||8.7||-18.9||9.0||5.9||5.9||5.4||5.2||5.0|
|Gross non-life premiums written, USDbn||0.50||0.42||0.37||0.38||0.42||0.46||0.50||0.53|
|Gross non-life premiums written, USD, % y-o-y||13.0||-17.7||-10.6||3.0||8.8||10.2||9.8||5.0|
Key Updates And Forecasts
We maintain a bullish outlook with regard to insurance premiums growth in Lithuania over the next few years, with both the life and non-life sectors well-placed to benefit from steady growth in GDP and household and corporate spending. However, density will remain low by European standards in both markets, with gross life premiums measuring around USD97 per capita in 2020 and non-life premiums totalling USD189 per capita.
The non-life market will be better performer of the two sectors, with premiums set to grow by 3.0% in 2016 and by 8.4% a year on average over the remainder of the forecast period to reach USD528mn in 2020.
Life premiums will grow by just 0.6% in USD terms this year which is partly due to the effects of currency market movements. Growth will accelerate over 2017-2020 to average 6.4% a year. By 2020 the total size of the market will be USD272mn.
The Lithuania Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Lithuania Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Lithuanian insurance industry.
- Benchmark BMI's independent insurance industry forecasts for Lithuania to test other views - a key input for successful budgeting and strategic business planning in Lithuania's insurance market.
- Target business opportunities and risks in Lithuania through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
- Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
- Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
- Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
- Motor: Fleet size by type of vehicle % change y-o-y.
- Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.