Lithuania Insurance Report

Published 26 February 2015

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Lithuania Insurance Report

BMI View: Strong multi-national companies that can easily deal with the rising capital and regulatory requirements associated with the EU ' s Solvency II regime completely dominate both the non-life segment and the life segment of Lithuania ' s insurance sector. In the life segment, those households who can afford to save have been attracted to single premium and unit-linked products offered by the insurers. These households should continue to increase their demand for life insurance over the course of the forecast period. The life insurers have the capacity to develop and distribute attractive products. Changes in the competitive landscape of the non-life segment mean that the local subsidiaries of Polish major PZU (Lietuvos Draudimas) and Norway ' s Gjensidige Baltic (through its own subsidiary and the former PZU Lietuva) should account for about half of all non-life premiums written in 2015. Growth of the non-life market will continue to be constrained by competitive conditions (falling prices) in the motor vehicle and property insurance sub-sectors. We think that prospects are good for health insurance and, thanks to both rising volumes and prices, transport insurance during the forecast period .

The competitive landscape in Lithuania's non-life segment has changed dramatically in recent months. A reorientation of the global priorities of RSA meant that its subsidiary Codan has sold its interests in the Baltic States. In Lithuania, this means that Lietuvos Draudimas, the former state owned monopoly which still accounts for just under one third of the premiums written in the non-life segment, has been sold to Polish major PZU. PZU had had a significant presence in Lithuania through its subsidiary PZU Lietuva. Lithuania's competition regulator made the purchase by PZU of Lietuvos Draudimas conditional on the divestment of the motor vehicle and property insurance businesses of PZU Lietuva. However, PZU decided instead to sell PZU Lietuva in its entirety...

Table of Contents

BMI Industry View
7
SWOT
9
Political
10
Economic
11
Industry Forecast
12
Total Premiums Forecast
12
Table: Total Gross Premiums Written (Lithuania 2011-2018)
13
Total Claims
13
Table: Total Insurance Claims (Lithuania 2008-2013)
13
Insurers' Assets
14
Table: Total Insurance Assets (Lithuania 2006-2013)
14
Life Premiums Forecast
14
Life Premiums
14
Table: Gross Life Premiums Written (Lithuania 2011-2018)
15
Life Claims
16
Table: Life Insurance Claims (Lithuania 2008-2013)
16
Life Insurers' Assets
16
Table: Assets (Lithuania 2006-2013)
17
Insurance Drivers
17
Table: Insurance Key Drivers, Disease Adjusted Life Years (Lithuania 2011-2018)
17
Table: Insurance Key Drivers, Private Health Expenditure (Lithuania 2011-2018)
18
Non-Life Premiums Forecast
19
Non-Life Premiums
19
Table: Gross Non-Life Premiums Written (Lithuania 2011-2018)
20
Table: Non-Life Insurance Claims (Lithuania 2008-2013)
20
Non-Life Insurers' Assets
21
Table: Assets (Lithuania 2006-2013)
21
Non-Life Sub-Sector Forecast
22
Table: Non-Life % Breakdown (Lithuania 2011-2018)
23
Motor and Transport Insurance
23
Table: Motor Vehicle Insurance (Lithuania 2011-2018)
23
Table: Insurance Key Drivers, Autos (Lithuania 2011-2018)
24
Table: Transport Insurance (Lithuania 2011-2018)
25
Table: Insurance Key Drivers, Freight Tonnage (Lithuania 2011-2018)
25
Property Insurance
25
Table: Property Insurance (Lithuania 2011-2018)
26
Health Insurance
26
Table: Health Insurance (Lithuania 2011-2018)
26
General Liability and Credit Insurance
26
Table: General Liability Insurance (Lithuania 2011-2018)
27
Table: Credit/Financial Guarantee Insurance (Lithuania 2011-2018)
27
Industry Risk Reward Ratings
28
Central and Eastern European Risk/Reward Index
28
Table: Central And Eastern Europe Risk/Reward Index - Q1 2015
29
Market Overview
30
Life Market Overview
30
Table: Life Market Share, USDmn, 2008-2013
31
Table: Life Market Share (%), 2008-2013
32
Non-Life Market Overview
33
Table: Non-Life Market Share, USDmn, 2008-2013
35
Table: Non-Life Market Share (%), 2008-2013
35
Company Profile
37
Gjensidige Baltic
37
Lietuvos Draudimas
40
SEB Life & Pensions International
42
Swedbank Life Insurance
44
Demographic Forecast
47
Lithuania
47
Table: Lithuania's Population By Age Group, 1990-2020 ('000)
48
Table: Lithuania's Population By Age Group, 1990-2020 (% of total)
49
Table: Lithuania's Key Population Ratios, 1990-2020
50
Table: Lithuania's Rural And Urban Population, 1990-2020
50
Methodology
51
Industry Forecast Methodology
51
Risk/Reward Index Methodology
54
Table: Indicators
56
Table: Weighting of Indicators
57

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.

Key Benefits

  • 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).

Coverage

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.

Company Profiles*

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.

Sources

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.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc