Insurance market profit slowed down in the first quarter of this year. According to data from the Financial Supervisory Authority (AMF), insurance companies reported a net profit of Lek 1.07 billion, down 12.6% compared to the same period a year earlier.

Profitability indicators also declined compared to the first quarter of 2025. According to the AMF, the return on equity ratio fell to 4.6%, from 5.08% in the same period a year earlier. While the asset return ratio fell to 1.68%, from 2.02% in the first quarter of 2025.

The decline in profits came from the largest market segment, Non-Life, while life insurance companies recorded further profit growth compared to the first quarter of last year.

Non-Life insurance companies for the first quarter achieved a net profit of Lek 903 million, down 17.1% compared to the same period a year ago.

However, the decline in profits is not related to the performance of insurance activity, which brought higher profits. The technical result for the quarter reached Lek 975 million, or 50% more compared to the same period last year.

The increase in the technical result was determined by the increase in net earned premium, which reached more than Lek 5 billion, an annual increase of 12.2%.

The system of calculating mandatory TPL insurance premiums based on several risk factors had a positive effect on the income and profits of the insurance market, starting from 2025. In general, this has contributed to the improvement of the technical result.

However, the decrease in total net profit for the first quarter of this year came from the decrease in investment income and especially from a strong decrease in the item of income, other, unspecified in statistical reports.

Meanwhile, profits marked further growth in the Life insurance market. According to the AFSA, for the first quarter of the year, the net profit of Life insurance companies reached Lek 164 million, up 23.8% compared to the first quarter of last year.

The increase in profits came mainly from the expansion of the technical result. This result reached the value of Lek 201 million, about 17% more compared to the same period a year ago.

The insurance market continues to show few significant qualitative developments and remains largely dependent on mandatory products, mainly motor ones.

For the first half of this year, AFSA statistics show that the growth in gross written premiums was modest, at 3.2%.