Insurance market profit expands further/ Reaches almost 35 million euros for the 9-month period

2025-12-29 10:22:37, Ekonomi CNA

Insurance market profit expands further/ Reaches almost 35 million euros for the

The insurance market has further expanded its profits in the third quarter of the year. Data from the Financial Supervisory Authority (AMF) show that, for the first 9 months of 2025, the net profit of the insurance market in the country reached 3.37 billion lek, or almost 35 million euros. For the third quarter alone, the sector reported a profit of 1.3 billion lek.

The progressive profit for the 9-month period is up 69% compared to the same period last year and simultaneously marks the highest historical values ??ever achieved by this market.

Market profitability indicators also show improvement compared to last year. The return on equity ratio increased to 14.07%, from 10.47% in the same period last year. Meanwhile, return on assets increased to 5.4%, from 3.6% a year earlier.

Profits for this year are increasing, both in the Life and Non-Life insurance markets.

According to the AFSA, the net profit of companies in the largest market, Non-Life, increased to 2.99 billion lek, 69% more compared to the same period last year.

The increase in profits was influenced by the improvement in the technical result (the result related to insurance activity), net income from investments, but also the increase in income in the item "other income".

The technical result reached a value of approximately 2.54 billion lek, an increase of 27.2% compared to the 9-month period of 2024.

The increase in the technical result was determined by a higher increase in net earned premiums in relation to the operating expenses of insurance companies, while net claims expenses this year appear to be decreasing.

Net earned premiums, which constitute the main basis of insurers' income, have increased by 5.8% compared to the 9-month period of 2024. While net claims paid have shrunk by 4% compared to the previous year. Meanwhile, operating expenses have increased by 6.6% compared to the 9-month period of the previous year.

The net result from investments was also positive at 674 million lek, with an increase of 58% compared to the same period in 2024.

While income under the item "other income" (unspecified) marked a strong increase to 549 million lekë, 74 times more compared to the same period a year ago.

Meanwhile, in the Life insurance market, companies reported net profits of 375 million lek, a figure 77% higher compared to the same period a year ago.

The increase in profit in the Life insurance market has come mainly from the increase in net earned premiums, in parallel with the decrease in net expenses for claims paid.

Net earned premiums increased by 16.4% compared to a year earlier, while net expenses for claims paid decreased by 5.5% compared to a year earlier.

This year, life insurance companies are continuing to increase operating expenses, but at a somewhat slower pace compared to last year. Net operating expenses increased by 9.3% and continue to be very large compared to the value of claims paid. In nine months, operating expenses reached 927 million lekë, four and a half times more than net claims expenses.

According to data from the AFSA, the insurance market for the first 9 months of 2025 reached a value of gross written premiums of 20.2 billion lek, an annual increase of 10.4%.

The overwhelming majority of growth this year continues to come from compulsory motor insurance, supported by the increase in the average premium for compulsory TPL insurance. /Monitor