Cash in banks accounts for the largest share, amounting to UAH 36 billion, or 43% of all assets. Government securities remain the second-largest asset class, with a portfolio of UAH 25.8 billion and a share of 31%. Together, these two account for 74% of all assets covering insurance reserves.
This structure indicates a further strengthening of the conservative investment policy of insurers. In the face of war risks, increased financial market volatility, and regulatory requirements, insurers prefer highly liquid instruments with minimal credit risk.
For underwriters and risk managers, this means a high correlation between the sector's financial stability and the government's fiscal and debt policies. At the same time, government securities remain one of the few instruments that combine liquidity, regulatory advantages, and an acceptable level of return.
The third-largest balance in the structure is held by the MTIBU, amounting to UAH 11.9 billion, or 14% of assets. This significant share is explained by the specific nature of the compulsory motor insurance market and the functioning of the bureau's centralized funds. For insurers actively involved in the compulsory motor third-party liability insurance and the international Green Card system, these funds are an important element of the payment guarantee system.
Reinsurance reserves amount to UAH 6.4 billion, or 8% of the assets. Their share reflects the level of risk transfer to reinsurers and the degree of diversification of catastrophic and large corporate risks. For underwriters, this indicator is particularly important, as it characterizes the market's ability to manage risk accumulation and protect capital from large losses.
Investments in real estate amount to only UAH 2.4 billion, or 3% of assets. This is significantly lower than the historical levels typical for the Ukrainian insurance market before the war. The decline in the share of real estate reflects both the rise in war risks and insurers' desire to maintain high portfolio liquidity.
From a risk management perspective, the asset structure of Ukrainian insurers remains one of the most conservative in recent years. The combined share of bank deposits, government securities, and funds in the MTIBU reaches UAH 73.7 billion, or 88% of all reserve-covering assets. This ensures a high level of liquidity and regulatory resilience for the sector.
For underwriters, this structure has a dual effect. On the one hand, it ensures stability of meeting obligations to policyholders even in a war-torn economy. On the other hand, a high concentration in low-risk assets limits the potential for investment income, which becomes especially important during periods of rising insurance premiums and inflationary pressure, the source added.
* 1 EUR = 50.3123 UAH (March 31st, 2026)
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