Strong growth in insurance market continues, exceeding previous years’ volumes
In Q3 of this year, the insurance market exhibited strong growth, with its insurance premiums above €580 million and claims paid at €324 million. Market growth was driven by the non-life insurance sector, which has been growing at a 20 per cent rate since the beginning of the year.
‘While the insurance market continues growing fast, it its worth mentioning that the amounts paid by insurers under life and non-life insurance insured events grew at an even faster pace,’ said Vytautas Valvonis, Director of the Supervision Service of the Bank of Lithuania.
Over the three quarters of 2017, insurance premiums rose by 16.5 per cent year on year, to €580 million. The amount of non-life insurance premiums rose by a fifth, to €415.1 million; of life assurance – by €165 million, an increase of 7.6 per cent year on year.
€324.1 million were paid in claims over the three quarters, a year-on-year increase of 20 per cent. Almost 70 per cent of total claims paid – €224.1 million (an increase of nearly one-fifth from Q3 of the previous year) – was comprised of non-life insurance claims paid. Within the life assurance market, almost €100 million were paid in claims over three quarters of this year, a year-on-year increase of nearly a fourth.
Profits of insurance undertakings before tax went above €24 million over nine months of this year, increasing by four times year on year. The highest profits were earned by life assurance undertakings – €17 million. The profits of non-life insurance undertakings amounted to €7 million. All life assurance undertakings and two non-life insurance undertakings operated profitably. Profits earned by insurance brokerage firms stood at €4.3 million, an increase of 21 per cent year on year.
At the end of September 2017, insurance undertakings managed assets in the amount of €1.4 billion, a year-on-year increase of one-fourth. Most of assets – €873 million – were owned by life assurance undertakings. At the end of September, assets of insurance brokerage firms stood at €28.2 million, growing by almost 14 per cent over the year.
All insurance undertakings met the solvency capital requirement with a margin: the solvency ratio of life assurance undertakings was 2.51, of non life insurance undertakings – 1.48 (the required minimum is 1).
In Q1 of 2017, insurance services were provided by 21 insurers, of which 9 undertakings and 12 branches of undertakings registered in other EU countries. 97 insurance brokerage firms mediated insurers in the conclusion of insurance contracts.