Insurers continue to offer coverage for war risks to an increasing number of businesses and individuals, although this line of business remains unprofitable with a combined ratio of 111.11%, according to the “2025 Insurance Market Review” prepared by the National Association of Insurers of Ukraine (NAIU).
In addition, the report notes that insurance against war risks, in particular, led to a 30% increase in insurance premiums in the property line of business, which is directly linked to public demand for real estate insurance against the consequences of war. At the same time, 75% of clients are legal entities. Ukrainian businesses are actively seeking protection and finding it by engaging foreign reinsurance capacity, particularly from global giants such as Lloyd’s of London.
According to the information, 304 insurance companies have left the domestic market since 2016.
“It was a painful but critically necessary cleansing process. The industry underwent a digital revolution, weathered stricter solvency requirements in 2019, survived a massive ‘Split’ in 2020, and implemented Ukraine’s new, progressive Law ‘On Insurance.’ And all of this took place against the backdrop of Russia’s full-scale invasion and unprecedented security uncertainty,” the report notes.
As of the end of 2025, 47 companies operate in the non-life insurance sector, while only 10 remain in life insurance.
“Today, this is a highly concentrated and fiercely competitive environment, where the top ten companies account for 74.3% of the entire non-life market. In the life insurance segment, the situation is even more telling, and the entire market consists of these 10 players, with a single insurer accounting for nearly 50% of the industry,” the report notes.
It is also emphasized that despite the war and extremely challenging operating conditions, companies have demonstrated impressive resilience. The net financial result for both segments totaled UAH 6.8 billion, and only nine insurers ended the year with losses. At the same time, the market as a whole remains well-capitalized, as eligible assets for meeting solvency requirements amounted to UAH 86.2 billion, which is 31% higher than the figures for 2024.
“The robust operational health of the risk sector is best evidenced by the figures, where the portfolio loss ratio stands at 49.1%, the combined loss ratio has fallen below the psychological threshold to 97%, and operational efficiency has remained at a high level of 88.6%.
We can only wholeheartedly congratulate our non-life market on these results,” the report emphasizes.
INSURANCE, INSURERS, war risks
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