OREANDA-NEWS. August 25, 2008. It is almost 28 percent more than at the same time last year, when the profit amounted to 24.7 million LTL. Moreover, the number of the insurance premium written of the company increased by 23 percent – up to 279.2 million LTL, reported the press-centre of Lietuvos Draudimas.

„Good results of the six months were determined by the continuing profitable growth strategy, chosen by the company, as well as implemented the pricing and customer segmentation, where each customer pays the price, corresponding to their discipline“, – said the CEO of Lietuvos Draudimas Kestutis Serpytis.

According to him, the conservative investment strategy, where the biggest share of investment portfolio is directed towards the states with high liquidity ratings and the stock of the debt of business enterprises, has enabled the company to preserve the value of net investment income during the market fall. During the first six months of this year the company achieved 3,5 million LTL return on investment – almost the same as last year. 

During the first six months of this year Lietuvos Draudimas wrote 23 percent more of the new insurance premiums – 279.2 million LTL, i.e. 53.8 million LTL more than at the same time last year (227.5 million LTL). In half a year, the insurance premiums earned amounted to 231.8 million LTL, respectively last year – 180 million LTLs. „The growth of the insurance premiums written was determined by much more active commercial lines insurance.

The Lithuanian business has been actively covering the property, third party liability insurance and used other lines of insurance“, – commented K. Serpytis. According to him, the property and transport insurance segments have increased by almost one fifth. These insurance tendencies and much more active accident insurance were the determining factor of the situation on the market – this year Lietuvos Draudimas increased the market share up to 36.2 percent. At the same time last year it covered 35,3 percent of the market share.

Meanwhile, the claims indemnified to the customers of the company, increased by more than one third (36 percent) – during the first six months of this year, Lietuvos Draudimas indemnified the claims for 113,9 million LTL. This was determined by high accident rate on the roads of the country and increasing prices for repair as well as maintenance. Insurance indemnity, which amounted to 21 million LTL, paid this year for the department, belonging to “Viciunai” company group, which has been devastated by the fire, has significantly contributed to the growth of the insurance premium.

By the end of June of this year, the shareholders’ equity of the company amounted to 283.3 million LTL – 12.5 percent more than at the same time last year.

Lietuvos Draudimas, the leader on the insurance market, employs approximately 1500 employees all over Lithuania, and it belongs to one of the biggest insurance groups RSA, providing insurance services in 130 countries as well as serving approximately 20 million customers all over the world.