Lithuanian insurer sees profits sink

Lietuvos Draudimas, Lithuania's largest insurance group, posted an audited net profit of 6.7 million litas (1.9 million euros) in 2002, a 46.8 percent decline over the same period last year.

Lietuvos Draudimas attributed falling profit to an increased volume of claims, particularly in property insurance, and lower return on investment.

The Lietuvos Draudimas Group, comprising Lietuvos Draudimas, the life insurance arm Lietuvos Draudimo Gyvybes Draudimas and the credit insurance company Lietuvos Draudimo Kreditu Draudimas, is the largest insurance group in the Baltic states.

The group received 315.2 million litas in insurance income last year, a rise of 43.5 percent year-on-year.

The company's board has recommended earmarking 35 million litas for dividend payments.

Lietuvos Draudimas did not pay dividends from its 2001 earnings.

Lietuvos Draudimas' non-life and credit insurance income rose twofold to 236.5 million litas last year compared with 2001, and its life insurance income grew by 17.8 percent to 78.7 million litas.

The group's net income from investment fell by 26 percent to 26.6 million litas compared with net investment income of 36 million litas in 2001.

Lietuvos Draudimas' shareholder equity totaled 130 million litas as of late September.

The Danish insurance company Codan owns a 51 percent stake in Lietuvos Draudimas, while the European Bank for Reconstruction and Development and the Denmark-based Investment Fund for Central and Eastern Europe hold 21.65 percent of shares each.