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Insurance market profit grew by 38% last year

2026-04-20 07:02:01, Ekonomi CNA

Insurance market profits returned to growth last year and reached a historic high. According to information from the Financial Supervisory Authority (AMF), profits reached 3.13 billion lek or 32.4 million euros.

The market's profit increased by 38% compared to the previous year. The main contribution to the profit of 2025 was made by the largest segment, Non-Life insurance. The total profit of companies in this market reached 2.7 billion lek, an increase of 35% compared to 2024.

In the smallest segment of the market, that of Life insurance, profit for 2025 reached 421 million lekë, approximately 59% more compared to 2024.

According to AFSA analyses, the increase in market profit was mainly influenced by the increase in gross written premiums, by 10.6% more compared to the previous year.

The insurance market continues to be dominated by Non-Life market products and mainly compulsory motor insurance.

Gross written premiums in non-life insurance reached almost 24.7 billion lekë, up 9.9% compared to a year earlier. This segment continues to be dominant, with 91% of total market premiums.

The Non-Life insurance market was again dominated by compulsory motor third-party liability insurance in 2025. Gross written premiums in this segment reached 16.9 billion lek or 68.6% of the total market.

Domestic motor insurance TPL remains the largest product in the market, with 58% of gross written premiums in Non-Life insurance. Last year, the new risk-based premium calculation system came into effect, which has partially contributed to the increase in gross written premiums from this product. Domestic TPL insurance premiums increased by 13.3% compared to the previous year.

Meanwhile, voluntary insurance products in general showed slower growth last year as well.

The Life insurance market showed higher growth rates again in 2025. Gross written premiums reached 2.44 billion lek, up 17.6% compared to the previous year.

The life insurance market remains dominated by the debtor life insurance product, mainly related to life insurance for loans taken out at financial institutions. This product grew by 15.4% last year and accounted for 77.5% of the market's gross written premiums.

Gross claims paid in the entire insurance market for 2025 decreased, by 0.75% less compared to 2024.

The ratio between net claims paid and net premiums earned in the Non-Life market decreased to 38.4%, from 40.6% a year earlier. While in the Life market, this ratio decreased to 17.5%, from 20.4% in 2024.

Also, companies' operating expenses marked a smaller increase compared to the increase in premiums, with 5% more compared to 2024.

At the end of 2025, the insurance market reported total assets worth 63.4 billion lek or 655 million euros. Total market assets increased by 11.2% compared to the previous year.

The highest growth was in the Non-Life market, where assets expanded by 11.3%, while in the Life insurance market the growth in total assets was 10.7%./Monitor.al