The insurance market continued to grow in 2025, with premiums written increasing by nearly a tenth and the amount of insurance premiums per capita approaching €600. Medical expense insurance grew at the fastest pace, but its volume is still smaller than that of vehicle and property insurance products. Insurance undertakings’ profits also grew by nearly a tenth to over €100 million.
‘The insurance market is growing steadily and rising premiums reflect both the increasing financial capacity of the population and greater focus on risk management. As the market grows, indicators reflecting its maturity are gradually improving but we still lag behind many EU countries in this regard. At the same time, the structure of insurance is changing slowly, with people still prioritising the protection of their property over their health or life,’ says Renata Bagdonienė, Director of the Prudential Supervision Department of Lietuvos bankas.
Insurance premiums
In 2025, the insurance market grew by 9.2% in terms of premiums written to €1.73 billion. Of this amount, €1.339 billion (77.4% of total premiums) was attributable to non-life insurance and €391 million (22.6%) to life insurance.
Last year, the market grew at nearly the same rate as in 2024 (9.1%). The non-life insurance market maintained a double-digit growth rate increasing by 10.2%, while the life insurance market grew by 5.7% (10.5% and 4.5% respectively in 2024).
In the non-life insurance market, medical expense insurance grew the fastest last year, with premiums going up by 14.8% to €217 million. Property insurance premiums rose by 11.7% to €315 million, motor third party liability insurance premiums by 9.1% to €383 million and casco car insurance premiums by 7.4% to €304 million.
The life insurance market continues to be dominated by unit-linked life insurance: premiums for this segment rose by 6% last year to €317 million (81% of all life insurance premiums). Nevertheless, a 33.7% decline in the number of new contracts for this type of insurance signals that the popularity of unit-linked life insurance is waning.
Insurance claims
In 2025, €927 million was paid out to policyholders and victims, marking a 4.7% increase compared to 2024. Both life and non-life insurance claims grew at a similar rate.
Non-life insurance claims increased by 4.6% to €711 million, while life insurance claims rose by 4.8% to €216 million. Of this amount, €27 million consisted of claims paid out for insured events (up by 8.6% from 2024), while €189 million consisted of claims from policyholders’ accumulated capital (a 4.3% increase) paid out upon the expiration or termination of contracts as well as through partial withdrawals.
Motor third party liability insurance accounted for the largest share of non-life insurance claims and stood at 33.4% (€238 million). Casco car insurance claims accounted for 26.7% (€190 million), while property insurance claims made up 18.5% (€132 million).
Financial performance
According to unaudited data, insurance undertakings licensed in Lithuania earned a combined profit of €101.1 million in 2025, up by 9.8% from 2024. Profits of life insurance undertakings went down by 13.9% to €28.5 million, while those of non-life insurance undertakings went up by 23.2% to €72.6 million.
In 2025, the sector’s profit growth was driven by a 15% increase in underwriting performance and a 16.4% rise in net investment income. All insurance companies were profitable.
Insurance brokerage firms were also profitable: according to unaudited data, they earned €22.4 million in profit in 2025, up by 6% from 2024. Sales revenue of insurance brokerage firms increased by 15% to €135.8 million.
At the end of 2025, 19 insurers (8 insurance undertakings registered in Lithuania and 11 branches of insurance undertakings registered in other EU countries), 106 insurance brokerage firms and two branches were providing insurance services on the Lithuanian market.
Source: lb.lt
