Lithuania Insurance Report - Business Monitor International - Industry Reports

Lithuania Insurance Report

Lithuania Insurance Report - Business Monitor International - Industry Reports
Lithuania Insurance Report
Published Oct 08, 2016
50 pages — Published Oct 08, 2016
Price US$ 1,295.00  |  Buy this Report Now

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We have downgraded our life market growth forecast from -.- to -.- in EUR terms and -.- to --.- in USD terms amid a slowdown in demand and worsening equity market trends. However, our forecast for life premiums is more bullish than the central bank s zero growth forecast. However, we recognise that there is significant upside risk to the forecast over the medium term given the strong sales of single premium and unit-linked products in the recent past. Penetration should remain at around -.- of GDP for the duration of the forecast period and the life insurance sector will continue to account for around a third of total insurance premiums written in the Lithuanian market. For now, we think that life premiums will rise by around - in local currency terms throughout the forecast period. ...As mentioned, one of the constraining factors in the development of the life insurance market has been the low income levels of Lithuanian households. Indeed, we note that, at about EUR-,---, average annual real

...In H---, the domestic insurance market grew by -.- y-o-y, according the Bank of Lithuania. The Bank of Lithuania projects that by end-----, the domestic insurance sector will slightly increase its growth rate and the market will grow by --- . ...However, for the full-year we believe the rate of growth will be the same in both segments at around -.- . Although the market will be stagnant in ---- in US dollars terms, currency movements should see average growth of around - in premiums written, reaching USD---mn by ----. Although small, Lithuania s growth potential makes it an attractive investment destination. Opportunities for increased market share in Lithuania come from acquisition activity. In August ----, Vienna Insurance Group (VIG) was cleared to buy Latvia s BTA Baltic Insurance Company (BTA), which should secure a position as Lithuania s second largest non-life insurer.

...As is the case in Latvia, we suspect that a lack of understanding of the benefits of life insurance is an obstacle in Lithuania. We believe that Lithuanians who can afford life insurance choose to invest in other asset classes such as bank deposits or, perhaps, real estate. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Lithuania Insurance Report" Oct 08, 2016. Alacra Store. Oct 28, 2016. <>
Business Monitor International - Industry Reports. (2016). Lithuania Insurance Report Oct 08, 2016. New York, NY: Alacra Store. Retrieved Oct 28, 2016 from <>
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