Ukrainian insurance companies reported solid profits in 2025 despite operating under wartime conditions, as rising demand for protection against conflict-related damage boosted premium income, reported Ukraine Business News.

According to the National Association of Insurers of Ukraine, providing coverage against war risks remains financially unprofitable in itself. However, insurers continue to expand such offerings in response to strong demand from businesses and property owners seeking protection from potential damage.

Premium income in this segment has risen by around 30%, driven largely by corporate clients, which account for approximately 75% of policies. With limited alternatives available, many Ukrainian companies have accepted higher tariffs, often supported by international reinsurers such as Lloyd's of London, which help mitigate risk exposure.

At the same time, the insurance market has undergone significant consolidation. Since 2016, more than 300 insurers have exited the sector, leaving just 47 non-life companies and 10 life insurers by the end of 2025.

Market concentration has increased sharply, with the top 10 non-life insurers controlling 74.3% of the segment. In life insurance, nearly half of the market is held by a single provider.

Despite frequent warnings from insurers about difficult operating conditions, financial results suggest relative stability. The combined net profit of the sector reached UAH6.8bn ($158mn) in 2025.

In the non-life segment, the loss ratio stood at 49.1%, while operational efficiency stabilised at 88.6%, indicating that companies have managed to balance heightened risks with improved pricing and cost control.