The National Bank of Moldova published its Q1 2025 assessment of the insurance sector’s financial position and compliance with prudential rules as at 31 March 2025, covering 9 insurers (8 general-only and one composite), 49 insurance and reinsurance brokers, 52 insurance agents and 34 bancassurance agents. Assets and technical reserves rose versus end-2024, but sector-average solvency and liquidity indicators declined and net profit fell, with three insurers reporting losses. Total insurer assets reached MDL 5,566.8 million (up 1.0%), including MDL 3,246.3 million of liquid assets (58.3% of total), while gross technical reserves increased to MDL 3,202.4 million. All licensed insurers reported solvency ratios above 100%, although the average solvency ratio for general insurance fell to 172.1% (range 140.1% to 218.5%) and the life solvency ratio to 559.6%; own funds declined 2.6% to MDL 1,411.8 million and average liquidity coefficients slipped to 3.3 for general insurance and 15.8 for life insurance. Admissible assets allocated to cover technical reserves and the minimum capital requirement totalled MDL 4,123.0 million, leaving a surplus of MDL 518.4 million; eight of nine insurers had sufficient assets to cover technical reserves and all but one covered the minimum capital requirement, with government securities making up 64.9% of the allocated portfolio. Gross written premiums grew 10.6% year on year to MDL 740.2 million and claims paid rose 17.2% to MDL 311.2 million. The net combined operating ratio (ROC) for general insurance reached 99.4% and net profit was MDL 37.5 million (down 52.0%), alongside ROE of 8.0% and ROA of 2.7%. Intermediaries placed MDL 481.4 million of premiums across 220.0 thousand contracts and generated MDL 159.1 million of commissions, while the Road Accident Victims Protection Fund and the Compensation Fund reported balances of MDL 43.5 million and MDL 164.2 million respectively.
National Bank of Moldova 2025-07-14
National Bank of Moldova publishes Q1 2025 insurance sector report showing lower solvency and profitability despite asset growth
The National Bank of Moldova's Q1 2025 assessment of the insurance sector shows a rise in assets and technical reserves, but a decline in average solvency and liquidity indicators, with net profit falling by 52.0%. Total insurer assets reached MDL 5,566.8 million, with a solvency ratio for general insurance at 172.1% and life insurance at 559.6%. Gross written premiums increased by 10.6% year on year, while claims paid rose by 17.2%.