26 risk insurers and one life insurer left the insurance market of Ukraine in 2022, according to the overview of the non-banking financial sector published on the website of the National Bank of Ukraine (NBU).
According to NBU data, in the fourth quarter of 2022, the volume of gross premiums of life insurance companies increased by 9%, while risk insurance, on the contrary, decreased by 8%.
In general, in 2022, the volume of life insurance premiums decreased by 17%, and risk insurance - by 21%. At the same time, insurers' payments did not change during the quarter. At the same time, over the year under life insurance contracts, they increased by 7%, risk insurance - decreased by almost a third.
The share of car insurance premiums (CASCO, OSCPV and "Green Card") in 2022 increased by 10 percentage points to 49%. In particular, the volume of "Green Card" awards more than doubled compared to the previous year, and payments by almost a third. At the same time, property insurance and financial risk insurance premiums more than halved, and their payments decreased by 62%.
The volume of gross premiums transferred to reinsurance decreased by more than half during the year, and payments - by almost 60%. In the fourth quarter, reinsurance premiums decreased by 36%, and payments - 40%.
The NBU notes that the total volume of insurers' loss reserves did not change during the quarter, but had different dynamics with respect to individual types of insurance: for voluntary types, loss reserves slightly decreased by 7% compared to the third quarter; by mandatory types - increased by 10% compared to the previous quarter. In annual terms, loss reserves for voluntary and mandatory insurance types increased by 36%.
The investment income of risk insurers in 2022 increased by almost one and a half times compared to the previous year. Most of these incomes were interest on bank deposits. However, the increase in investment income could not cover the increase in operating expenses. The efficiency factor increased to 88%.
In the fourth quarter of last year, one of the life insurance market leaders reclassified investment income, which led to a significant decrease. Excluding this company, life insurers' investment income grew 30% year-on-year and 12% quarter-on-quarter. Income from deposits increased by 36% compared to the previous quarter, while revenue from OVDP investments remained unchanged.
Non-life insurers and life insurers ended the fourth quarter with a slight loss, but both groups were quite profitable for the year.
The return on capital of risk insurers was 15%, life insurers - 13%.
For the fourth quarter of 2022, the volume of assets of life insurers increased by 3%, and for the entire year of 2022 - by 18%. Assets of risk insurers decreased slightly for the quarter, but increased by 6% overall for the year.
As of January 1, 2023, seven insurers violated at least one of the solvency standards, capital adequacy, and riskiness of transactions.
