Romania’s insurance market maintained solid growth momentum in 2025, supported by higher premium volumes and strengthening financial indicators, despite an economic environment still marked by inflationary pressures and uncertainty.

Total gross written premiums, including branches of foreign insurers operating under the Freedom of Establishment (FoE) regime, reached approximately RON 25.8 billion (EUR 5.06 billion), up 10% y-o-y. Growth was primarily driven by domestic insurers, which recorded an 11% increase, while branches expanded by 7%.

Non-life insurance continued to dominate the market, accounting for 80% of total GWP. Within this segment, MTPL remained a key driver, with premiums rising by 9% year-on-year to around RON 10.9 billion (EUR 2.13 billion).

Claims expenditure also increased, with total gross claims paid reaching approximately RON 12.3 billion (EUR 2.41 billion), up 16%. This reflects both portfolio growth and ongoing claims inflation, particularly in the non-life segment, which accounted for 83% of total payouts.

Technical provisions, calculated under the Solvency II regime, rose by 22% to around RON 27 billion (EUR 5.3 billion), supported by growth across both life and non-life business lines.

Insurers’ investment portfolios continued to expand, reaching a total value of RON 38.5 billion (EUR 7.55 billion), up 19% y-o-y. The asset allocation remained conservative, dominated by fixed-income instruments - primarily government bonds - which accounted for approximately 62.4% of total investments.

Distribution remained heavily reliant on brokers, which intermediated around 68% of total GWP - equivalent to RON 17.6 billion—marking a 9% increase. Intermediation levels remained particularly high in non-life insurance, at 82%, while significantly lower in life insurance, at 13%.

Among the year’s notable developments were the end of the MTPL tariff cap, as well as a ban—effective 1 July 2025—on a Freedom of Services (FoS) insurer from underwriting new business in Romania.

From a financial stability perspective, solvency indicators remained comfortably above regulatory thresholds, with both SCR and MCR ratios exceeding 100% and showing a slight improvement year-on-year. Liquidity also remained robust, with ratios of 2.95 for non-life insurance and 3.6 for life insurance, indicating the market’s adequate capacity to meet its obligations.

Overall, the 2025 developments point to a market undergoing both growth and consolidation, characterized by steady demand for protection products and a prudent investment approach, the market authority appreciated in a press release.

At year-end, 24 insurers were authorized by the Financial Supervisory Authority to operate in Romania, alongside 15 branches active.