Lietuvos Draudimas AB, the Lithuanian unit of RSA Insurance Group, expects the country’s non-life insurance market to grow by as much as 7 percent this year as citizens in the European Union’s second-fastest growing economy have more cash to spend.
Assuming output growth of about 3 percent, Lithuania’s non-life insurance market will expand by at least 6 percent to 7 percent, Lietuvos Draudimas, Lithuania’s largest property and casualty insurer, said in an e-mailed statement today.
“This is a young market with much opportunity and room for business development,” the company said, adding that less than half of private homes and fewer than a quarter of apartments in the country have insurance.
Lithuanian insurers wrote 902 million litai ($343 million) of non-life premiums in the first nine months of 2012, 5.4 percent more than in the same period a year earlier, the central bank said.
Private individuals in Lithuania spent an average 437 litai on insurance last year, which is forecast to grow 15 percent in 2013 to 501 litai per capita, according to Lietuvos Draudimas.