Ukrainian Insurers Continue to Offer War Risk Insurance Despite Losses

Ukrainian insurance companies, despite the fact that war risk insurance remains unprofitable, continue to actively offer their services to a growing number of businesses and individuals. According to the 'Insurance Market Review for 2025,' prepared by the National Association of Insurers of Ukraine (NAIU), the combined ratio in this sector is 111.11%, which indicates the losses associated with this line of insurance.

At the same time, it is worth noting that war risk insurance has contributed to a 30% increase in insurance premiums in property lines of business. This growth is directly linked to the heightened demand from the public for property insurance against the consequences of war. Notably, 75% of clients seeking such services are legal entities. Ukrainian businesses are actively looking for ways to protect their assets, and in this context, the involvement of foreign reinsurance capacities plays a crucial role, with global giants such as Lloyd's of London standing out.

According to information available, since 2016, the Ukrainian insurance market has undergone significant changes, resulting in 304 insurance companies exiting the market. This painful yet critically necessary cleansing process has allowed the industry to undergo a digitalization revolution, withstand increased solvency requirements in 2019, survive a massive 'Split' in 2020, and implement a new, progressive law in Ukraine on insurance. All these changes occurred against the backdrop of Russia's full-scale invasion and unprecedented security uncertainty.

As of the end of 2025, there are 47 companies operating in the non-life insurance sector, while only 10 remain in life insurance. Today, the insurance market is highly concentrated and fiercely competitive, with the top ten companies accounting for 74.3% of the entire non-life market. In the life insurance segment, the situation is even more pronounced, as the entire market is represented solely by these ten players, with nearly 50% of the industry controlled by a single insurer.

Despite the challenging operating conditions caused by the war, insurance companies have demonstrated impressive resilience. The net financial result of both segments amounted to 6.8 billion UAH, with only nine insurers finishing the year with losses. The market as a whole remains reliably capitalized, as acceptable assets for meeting solvency requirements totaled 86.2 billion UAH, which is 31% higher than the figures for 2024.

The strong operational health of the non-life sector is evidenced by impressive figures: the portfolio loss ratio stands at 49.1%, the combined loss ratio has fallen below the psychological threshold to 97%, and operational efficiency has been recorded at a high level of 88.6%. Such results for our non-life market deserve sincere congratulations, as they indicate the recovery and adaptation of the industry to new realities.