STATISTICS: UKRAINE, FY2020: insurers earned a record profit of UAH 2.2 billion

20 May 2021 —
STATISTICS:  UKRAINE, FY2020: insurers earned a record profit of UAH 2.2 billion
The Ukrainian insurance market ended 2020 with a GWP drop by almost 15%, to UAH 45.18 billion (EUR 1.3 billion), primarily due to the exit from the market of several insurers and a decrease in risk insurance in the crisis second quarter.

At the same time, only the non-life sector showed a decrease (by 17%), while life insurance, on the contrary, increased and occupied 11% in the market portfolio, as the data published by the National Bank shows.

Among the voluntary types, growth was recorded only by medical insurance and motor hull insurance, and among the compulsory ones - by domestic MTPL.

Paid claims of the market grew insignificantly (+3.59%), while the level of paid claims in GWP remained almost unchanged - at 35% for risk insurance and 13% for life insurance.

In the structure of net premiums, 57% were received by insurers from individuals, which indicates the continued demand of the population for insurance services. The most common types are motor insurance (Motor Hull, MTPL and Green Card) and personal insurance (medical and life). Compared to 2019, property and fire risk insurance premiums decreased significantly, mainly due to the exit of the leaders in this area from the market.

Loss ratio indicators for risky types of insurance traditionally grow at the end of the year - in compulsory insurance loss ratio in the fourth quarter amounted to 55%, in voluntary insurance - 66%. Due to the loss ratio growth with almost unchanged expenses, operating performance of non-life insurers at the end of the year deteriorated to over 100%.

The share of investment income in total income of insurers was 18% for life insurers and 4% for non-life insurers.

Despite a decrease in the number of market participants to 210 companies, the assets of insurers grew slightly. According to market experts, for insurers, the financial result for 2020 is the highest in the last 5 years. The insurers earned a record profit of UAH 2.2 billion, and the return on assets was 3.4%. According to this indicator, they are ahead of other financial institutions.

In the non-life insurance sector, ARX remains the leader (UAH 2.68 billion of GWP), followed by UNIQA by a small margin, while TAS closes the top three leaders. The life insurance ranking is headed by MetLife, the share of which in the sector's GWP in 2020 increased to 31%.

Access XPRIMM and download the latest statistics of the Ukrainian insurance market for FY2020.