According to the Insurance TOP rating, bank deposits and bonds continue to form the bulk of life insurance assets. The investment portfolio structure shows a gradual shift toward more liquid instruments. The share of deposits was 36.1% at the beginning of 2023, it now exceeds half of all assets. Deposits account for UAH 13 billion, or 51.4% of all sector assets. Another UAH 10.4 billion, or 41.3%, is made up by bonds, primarily government securities.
Total assets of life insurers at the end of March 2026 amounted to UAH 25.3 billion (~EUR 0.50 billion), up UAH 3.2 billion from the previous year. Eligible assets, which can be used to cover insurance reserves and capital requirements, reached UAH 24.4 billion, vs UAH 21.3 billion the previous year.
High dependence on existing portfolios remains a distinctive feature of Ukrainian life insurance. Approximately 80% of all premiums are generated under contracts concluded in previous years. More than two-thirds come from classic savings life insurance programs, indicating a long-term nature of the business and relatively stable client behavior, even during the war. At the same time, the health insurance segment of life insurance continues to grow – its share increased to 4.8%, indicating a gradual expansion of companies' products.
Life insurance paid claims in the first quarter reached almost UAH 460 million (+22.1%). As a result of accelerated growth, the payout rate in the market rose to 30.6%. For comparison, three years ago, it stood at approximately 20%. The increase in payments is primarily due to a rising number of contracts for which obligations have matured. The market is gradually entering a stage where a significant portion of savings programs concluded in previous years are reaching maturity.
Life insurers' financial results saw a significant improvement. In the first quarter, their net profit amounted to UAH 335 million, vs approximately UAH 250 million a year earlier. At the same time, the NBU notes that the positive financial result was primarily driven by investment income. The negative result from insurance operations was offset by profits from asset placements.
Sales channels also remain stable. Approximately 85% of all premiums are collected through agency networks. Banking accounts for approximately 10% of sales, direct sales account for 3%, and brokers' share does not exceed 2%.
The property insurance market in Ukraine remains one of the largest segments of non-life insurance. Property insurance continues to grow, primarily supported by the corporate segment, insurance of industrial facilities, warehouses, shopping centers, and individual homes. Military risk insurance programs are an additional driver.
In the first quarter of 2026, property insurance recorded double-digit growth y-o-y. Most premiums were written by legal entities, which accounted for over 75% of all contracts concluded.
A significant portion of property insurance losses are associated with fires, utility failures, natural disasters, and military risks. According to market participants, military risk insurance for property is gradually evolving from a niche segment into a full-fledged insurance product.
Concentration risks are currently a particular concern for underwriters. A significant portion of insured property assets are in industrial regions, which remain highly vulnerable to military threats. This requires increasingly complex risk assessment models and increased use of reinsurance protection.
In the first quarter of 2026, the property insurance market demonstrated stable premium growth, controlled loss ratios, and a gradual expansion of insurance coverage to new risk categories. The key growth drivers are integration of international reinsurance, expansion of military insurance programs, and growing demand from the corporate sector. For underwriters, the key challenges remain assessing military risks, concentration of large industrial facilities, and the need to develop long-term pricing models in a highly uncertain environment, the source writes.
* 1 EUR = 50.3123 UAH (March 31st, 2026)
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