Lidar sensors are widely used in various applications, ranging from scientific fields over industrial use to integration in consumer products. With an ever growing number of different driver assistance systems, they have been introduced to automotive series production in recent years and are considered an important building block for the practical realisation of autonomous driving. However, due to the potentially large amount of Lidar points per scan, tailored algorithms are required to identify objects (e.g. pedestrians or vehicles) with high precision in a very short time. In this work, we propose an algorithmic approach for real-time instance segmentation of Lidar sensor data. We show how our method leverages the properties of the Euclidean distance to retain three-dimensional measurement information, while being narrowed down to a two-dimensional representation for fast computation. We further introduce what we call skip connections, to make our approach robust against over-segmentation and improve assignment in cases of partial occlusion. Through detailed evaluation on public data and comparison with established methods, we show how these aspects enable state-of-the-art performance and runtime on a single CPU core.