UKRAINE: in 2Q2023 the insurance sector demonstrates profitability and premium growth

31 August 2023 — Marina MAGNAVAL
According to the National Bank of Ukraine (NBU), in 2Q2023 the non-bank financial sector of Ukraine underwent a variety of changes, with the majority of sectors reporting a growth of their assets, Interfax reports, citing the NBU’s non-bank financial sector review.

NBU’s review said that the insurance sector posted profit, GWP rose slightly compared to 1Q2023, mainly in risk insurance.

The volume of assets of life insurers in the second quarter increased for the second time in a row - by 4%. At the same time, the assets of risk insurers decreased slightly due to the exit of seven participants from the market.

Life GWP remained almost unchanged during the quarter, while non-life GWP increased by 12%, up to the level of the 4Q2021. Motor insurance increased by 21% and exceeded the pre-war level. The share of motor insurance during the hostilities exceeded half of the non-life premium portfolio.

The insurance market is profitable: the return on capital of risk insurers is commensurate with previous years (6%), while life insurers received a record quarterly profit, the NBU notes in its non-bank financial sector review.