2025-05-19
Motor vehicle and property insurance volumes are growing rapidly in Lithuania’s insurance market
Lithuania’s insurance market continued growing its muscles last year. The volume of premiums written increased by almost a tenth compared to 2023, and insurers again earned record profits. The average premium amount per capita reached almost €550, but the focus is still on insuring property, rather than life or health.
“Insurance volume in Lithuania continues to grow at a rapid pace. After exceeding the symbolic threshold of €1 billion in premiums written for the first time in 2021, last year the market already exceeded €1.5 billion. Importantly, as the market grows, the indicators reflecting its maturity are also gradually increasing, though the pace of health and life insurance growth is slower than that of property insurance,” says Renata Bagdonienė, Director of the Prudential Supervision Department of Lietuvos bankas.
“As the Lithuanian economy continues to grow, the insurance market is expected to do the same,” she added.
Insurance premiums
In terms of premiums written, the insurance market increased in 2024 by 9.1%, to €1.585 billion, of which €1.214 billion (77% of total premiums) was written under non-life insurance contracts and €370 million (23%) – under life assurance contracts.
Last year, the market growth rate slowed down almost twofold compared to 2023 (the market grew by 17.7%). The non-life insurance market maintained its double-digit growth rate, growing by 10.5%, while the life assurance market grew by 4.5% (in 2023, by 22.8% and 4.3% respectively).
The growth in the non-life insurance market was driven by a 12.9% (to €283.8 million) increase in CASCO motor vehicle insurance premiums, a 12.8% (to €282.1 million) increase in property insurance premiums and an 18.8% (to €139.4 million) jump in medical expense insurance premiums.
The growth rate of compulsory third-party liability insurance premiums for motor vehicle holders, which account for the largest share of the non-life insurance market (28.9%), stabilised in 2024 and is in line with normal market practice. Premiums for this type of insurance increased by 4.4%, to €350.7 million.
The life assurance market continues to be dominated by unit-linked life assurance, with premiums growing last year by 6%, to €298.5 million (80.6% of total life assurance premiums), and the number of contracts concluded increased by 5.2%.
Insurance claims paid
In 2024, €885.5 million was paid out to policyholders and injured parties, or 9.6% more than in 2023. The amounts of both life assurance and non-life insurance claims paid increased, but the growth rates differed.
Life assurance claims paid grew by 3.1%, to €205.7 million. Non-life insurance claims paid grew last year by 11.8% to €679.8 million.
Financial performance
In 2024, according to unaudited data, the insurance undertakings licensed in Lithuania earned a combined pre-tax profit of €99.6 million, 31% more than in 2023. Life assurance undertakings’ pre-tax profits increased by 35% to €31.8 million, while non-life insurance undertakings’ pre-tax profits rose by 29% to €67.8 million.
The rise in profits in 2024 was driven by a 25% improvement in insurance performance and a 23% increase in net investment income. All insurance undertakings operated at a profit.
At the end of 2024, the book value of assets under management of insurance undertakings amounted to €2.04 billion, up 11.5% (€210.3 million) compared to the end of 2023, according to unaudited data.
At the end of 2024, insurance services in the domestic market were provided by 19 insurers (8 insurance undertakings registered in Lithuania, 11 branches of insurance undertakings registered in other EU Member States).
Review of the insurance market.