The National Bank of Serbia published its report on the Serbian insurance sector for the first quarter of 2025, summarising market developments and key prudential indicators across insurers and reinsurers. The report shows a stable market structure with 20 (re)insurance companies and continued balance sheet and premium growth alongside solvency and liquidity ratios above reported requirements. Total premium in Q1 2025 rose 8.0% year on year to RSD 45.0 billion, with non-life insurance remaining dominant at 82.9% of premium and life insurance’s share easing to 17.1%. Non-life premium increased 8.7%, including motor third-party liability up 12.1%, voluntary health insurance up 25.2% and casco up 17.8%, while property insurance fell 10.5%. Sector assets increased 10.0% to RSD 428.3 billion and capital rose 15.2% to RSD 87.8 billion, while technical reserves grew 9.0% to RSD 289.0 billion. The available solvency margin stood at RSD 66.4 billion versus a required margin of RSD 29.4 billion, with basic capital adequacy ratios of 214.7% for predominantly non-life insurers and 256.9% for predominantly life insurers. The full amount of technical reserve funds was invested in prescribed asset forms, with non-life technical provisions primarily in government securities (65.4%) and life technical reserves largely in government securities (90.0%). The liquid assets-to-liabilities indicator for the sector was 108.0%, and market concentration by Herfindahl-Hirschman index was reported as moderate at 1,168; foreign-owned companies held predominant shares of life premium (82.6%), non-life premium (62.0%) and total assets (69.7%). Motor liability insurance was written by 11 insurers, with premiums up 12.3% driven by a 3.6% rise in contract numbers and an 8.4% increase in average premium; the top three insurers’ share was unchanged at 57.6%. The report also highlights expected further supervisory and regulatory changes linked to full alignment with the European Union’s Insurance Distribution Directive and continued work under Serbia’s Solvency II implementation strategy, which would affect risk quantification, capital adequacy conditions and related risk management practices.
National Bank of Serbia 2025-07-11
National Bank of Serbia publishes Q1 2025 insurance sector report showing premiums up 8% and assets up 10%
The National Bank of Serbia's Q1 2025 report on the insurance sector indicates stable market conditions with 20 (re)insurance companies, showing growth in balance sheets and premiums, and solvency and liquidity ratios above requirements. Total premiums rose 8.0% year-on-year to RSD 45.0 billion, with non-life insurance dominating at 82.9%. The report notes upcoming supervisory and regulatory changes for alignment with the EU's Insurance Distribution Directive and Serbia's Solvency II strategy.