In the third quarter of 2010 Montenegro came out from the recession caused by the impact of the global financial and economic crisis and in 2011 recorded positive, yet weak, economic growth. The stability of the Montenegrin economy is primarily threatened by the high illiquidity of the real economy, high share of low-quality assets in the banking sector, high default rate, the fast growth of public debt and state guarantees, the budget deficit and fear of the spillover effect from global markets. 

In its latest report from March 2010, the rating agency Standard & Poor's confirmed the BB/B rating for Montenegro for long-term and short-term borrowings in foreign currency and BB+/B for borrowings in the local currency, which is the same as the year before. Also the AAA rating for transfers and convertibility was reconfirmed.

Main economic indicators show the relative stability of Montenegrin economy. In 2011 inflation rate was 3.1% and estimated economic growth 2.0%. Although government consumption was reduced, public debt increased by 2.9 percentage points, remaining far below the Maastricht convergence criteria. The unemployment rate rose by 0.3% compared to 2010 and equalled 11.7%.

2011 Main Macroeconomic Indicators


0.63 million

2011 Growth of GDP (estimate)


2011 GDP (estimate)

USD 4.2 billion

2011 GDP per capita (estimate)

USD 6,668

2011 Inflation rate (retail prices)(estimate)


Source: IMF, World Economic Outlook, September 2011

Insurance market

In the Montenegrin insurance market, insurance activities were carried out by 12 insurance companies, of which 5 were non-life insurance and 7 life insurance. Premium collected by insurance companies amounted to EUR 64.8 million, which was 4.2% more than in 2010. Non-life insurance is far ahead with a 86.0% share. Non-life insurance and life insurance premiums both increased compared to 2010 – by 3.6% and 8.2% respectively.

Lovćen Osiguranje and its subsidiary Lovćen životna osiguranja continued to be the insurance market leader, although its market share declined to 47.3% (in 2010: 52.0%) They were followed by Sava Montenegro (a 16.0% market share) and Delta Generali (a 11.3% market share).

Premium structure in the insurance market of Montenegro


Shares in the insurance market of Montenegro


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