Ukrainian insurers continue to offer war risk coverage despite losses

Insurers are continuing to offer war risk coverage services to an increasing number of companies and individuals, although this line of business remains unprofitable, with a combined ratio of 111.11%, according to the Insurance Market Review for 2025 prepared by the National Association of Insurers of Ukraine (NAIU).

War risk insurance, in particular, contributed to a 30% increase in insurance premiums in property lines, directly linked to public demand for coverage of real estate against the consequences of war. At the same time, 75% of clients are legal entities. Ukrainian businesses are actively seeking protection and are finding it through attracting foreign reinsurance capacity, including from global giants such as Lloyd's of London.

According to the report, since 2016, a total of 304 insurance companies have exited the domestic market.

"This was a painful but critically necessary path of clearance. The industry has undergone a digitalization revolution, withstood stricter solvency requirements in 2019, weathered the large-scale 'Split' in 2020, and implemented the new, progressive Law of Ukraine 'On Insurance.' All of this took place against the backdrop of Russia's full-scale invasion and unprecedented security uncertainty," the report states.

As of the end of 2025, 47 companies operate in the non-life (risk) insurance sector, while only 10 remain in life insurance.

"Today, this is a highly concentrated and intensely 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 indicative, as the entire market consists of those same 10 players, with nearly 50% of the sector held by a single insurer," the report said.

Despite the war and extremely difficult operating conditions, companies have demonstrated impressive resilience. The net financial result of both segments amounted to 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, with eligible assets to meet solvency requirements totaling UAH 86.2 billion, up 31% compared to 2024.

"The strong operational health of the non-life sector is best evidenced by the figures: the loss ratio stands at 49.1%, the combined ratio has fallen below the psychological threshold to 97%, and operational efficiency has stabilized at a high level of 88.6%. Such results in our non-life market can only be genuinely welcomed," the report said.