At the end of the first half of 2025, the insurance sector was characterized by the growth of assets, capital and technical reserves. Average values of solvency ratios increased, compared to the situation at the end of the first quarter, both in general insurance and life insurance. This indicates the compliance of insurers with prudential requirements of reliability.
Insurance business has increased turnover, but decreased profitability. Although the volume of insurance premiums, as well as the number of concluded contracts, increased, the net profit decreased compared to the same period of the last year, amounting to 100,5 mln lei (-35%), while the combined operating ratio slightly increased (+0,1 p.p.). One insurer even had to record losses from its activity at the end of the half-year.
Collections of insurance gross premiums amounted to about 1,6 bln lei, having increased 2,6% of income. At the same time, the growth rate of payments for insurance claims far exceeded the growth of collections. During the reporting period, insurance companies reported gross claims paid on two types of insurance (general and life) totaling 656.3 million lei, which means a 23.4% year-on-year increase in payouts. The main burden of payments for general insurance falls on MTPL and Green Card (56%). And this trend has been observed for the last five years.
Together with insurance of land vehicles, excluding railway transport (hull insurance), the motor insurance sector accounts for more than 68.4% of the market. Fire and other natural catastrophe insurance (9.0%), and other property insurance (mainly crop insurance) follow with a share of 8.5%. Other types of insurance collect gross premiums of less than 82 million lei, or 5.4%. Insurers do not offer innovative products.
Return on equity (ROE) recorded by insurance companies amounted to 10.6%, which is 6.0 p.p. less than in 2024. Return on assets (ROA) amounted to 3.6%, which is 1.9 percentage points less than in the previous year.
The ratio of claims to gross premium for general insurance amounted to 40.6% (32.9 to 59.9%), up 6.8 p.p., compared to the first half of the previous year. It should be noted that according to this indicator insurers are reaching the “world level” of business costs.
Apart from compulsory insurance, the most significant growth was recorded in property insurance, including crop insurance – by 25 million lei (or 9.6 times), up to 27.3 million lei, and in insurance of land vehicles, except railway (CASCO) – by 17.5 million lei (or 11.3%), up to 172.4 million lei.
The average insurance indemnity for MTPL insurance in the country in the first six months of 2025 amounted to 21,257.8 lei/unit, which is 8.9% more than in the same period of the previous year. The average insurance indemnity for Green Card insurance in the same period amounted to 80,414.8 lei/unit, which is by 807.5 lei/unit or 1.0% more.
This year, 9 insurance companies, 54 insurance or reinsurance brokers, 51 insurance agents and 34 bank insurance agents operated on the insurance market.
