Insurance market of Ukraine. Results of the 1st quarter of 2025
In the first quarter of 2025, the non-banking financial services market and the insurance market of Ukraine demonstrated mixed dynamics. The insurance market grew to UAH 15.4 billion. The assets of insurance companies increased, with both premiums and payments under risk insurance contracts increasing during the period. At the same time, life insurance indicators decreased slightly. In general, the activities of insurers remained stable, and the sector remained profitable. Forinsurer analyzed the NBU report and selected the most important.
Gross insurance premiums for risk insurance amounted to UAH 14 billion, life insurance premiums amounted to UAH 1.41 billion. The level of risk insurance payments was 40%, the level of life insurance payments was 27%. The net financial result of insurers amounted to UAH 1.2 billion.
During the quarter, the number of participants in non-banking financial services decreased. Two insurers were removed from the state register. The main reason for the termination of activities was non-fulfillment of licensing requirements.
Total assets in the financial sector increased by 0.2% in quarterly terms and by 4.6% in annual terms.
Insurers’ assets increased by 6% to UAH 77 billion. The share of non-banking institutions in the structure of financial sector assets supervised by the National Bank of Ukraine increased by 0.1 percentage points and amounted to 10.3%.
In the insurance segment, risk insurers’ assets increased by 8% in quarterly terms and by 16% in annual terms. Life insurance companies’ assets increased by 3% in the quarter and by 12% in the year.
The sector’s concentration by assets remained stable, only in the life insurance market did the share of the largest insurer exceed 50%.
Premiums in risk insurance increased by 7% in the quarter and by 36% in annual terms. The main factor of this growth was premiums for compulsory motor third party liability insurance, which increased significantly due to the increase in the cost of policies after the transition to free pricing.
Payments for risk insurance types increased by only 1% in quarterly terms and by 17% in annual terms. This caused a decrease in the annualized level of payments for the first time in almost two years — to 39%.
