865 million Litas Insurance premiums were signed in the first half of 2011, i.e. 12.5 per cent more than in the corresponding period in 2010. Meanwhile, the amount of insurance payments grew more rapidly - by 14.1 percent., up to 546.5 million Litas. In June, a record amount was paid – 128.2 million Litas, nearly 60 per cent higher than in May. Per month premiums amounted to 148.6 million Litas, 8.8 per cent less than in May, but 17.6 per cent more than in June last year.

“In the first half of 2011 important changes have occurred in non-life insurance market. With the recovery of national economy, the importance of commercial insurance sector increased, which has led to non-life insurance market growth. Crop insurance has been rediscovered this semester, where record crop insurance premiums at the beginning of the year were followed by even higher benefits, which determined the significant changes of the whole non-life insurance market. This only proves that insurance potential is still not exhausted and it’s development into little affected fields of economy shall be present in the future”, said the chairman of the Insurance Supervisory Commission.

The main growth fostering factor in the life assurance market in the first quarter of 2011 was the life investment group, where insurance premiums increased by 19.6 per cent. Thus the life assurance market grew by 14.1 percent up to 286.8 million Litas premiums signed.

The sum of benefits paid through the first quarter increased by 14.1 per cent, up to 546.5 million Litas. Life assurance market paid 141 million Litas, i.e. 36.2 per cent more than the previous year. More than 50 million Litas was paid in June under crop insurance contracts, by way of compensation for losses caused by unfavourable weather conditions. This increased half year non-life insurance benefits by 8 per cent, up to 405.6 million Litas, and determined the highest sum of benefits paid in one month since 2002.

The number of contracts concluded in the first quarter increased by 3.6 per cent, up to 2.5 million contracts. Non-life insurance increased by 3.8 per cent, up to 2.4 million, meanwhile life assurance decreased by 13.9 per cent down to 28.9 thousands of contracts.

Source: LR DPK, 2011-07-27

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