By KYIV. Nov 29 (Interfax-Ukraine) – Investment income of risk insurers in July-September 2023 increased by 10% compared to the previous quarter and by 26% compared to the same period last year, while investment income of life insurers remained virtually unchanged during this time.
As reported in the review of the non-banking financial sector for November 2023 published on the website of the National Bank of Ukraine (NBU), the main driver of growth for risk companies was income from government bonds. Their efficiency ratio improved to 85%.
According to the NBU, risk insurers for January-September 2023 were operationally profitable and made a profit of UAH 1.8 billion, achieving a return on capital of 9%.
As for life insurers, despite unprofitable operating activities, investment income provided them with a record profit of UAH 700 million, and a return on capital of 25%.
Acquisition expenses and administrative expenses of risk insurers in the third quarter grew slower than earned premiums. The combined ratio decreased by 1 percentage point – to 92%.
The regulator notes that as of October 1, 2023, some 13 insurers violated at least one of the standards (solvency and capital adequacy, asset quality, riskiness of operations). The share of violators in assets was 6%, which is more than the results of the last quarter (1.8%) and the same quarter of the previous year (0.5%).
As reported, Ukrainian insurance companies in January-September 2023 collected net premiums worth UAH 33.438 billion, which is 28.6% more than in the same period in 2022 (UAH 25.995 billion), gross insurance premiums – UAH 34.142 billion (more 27.6%). Premiums received from individuals amounted to UAH 20.952 billion (more 25.8%), from reinsurers – UAH 736.9 million (less 16.3%).
