The insurance sector at the end of the first quarter of this year was characterized by an increase in assets, capital, solvency ratio and liquidity ratio (for non-life insurance) compared to the end of the previous quarter. At the same time, the gross technical reserves formed by insurance companies decreased insignificantly compared to December 31, 2023. The net profit of insurance companies for the year increased compared to the same period of the previous year, mainly due to the increase in the result from the insurance activity, IPN reports.
According to the National Bank of Moldova, the total assets of insurance companies amounted to 5.037,3 billion lei on March 31, up by 58.3 million lei or 1.2 percent compared to the end of the previous year. The value of liquid assets amounted to 2.974,3 billion, which represents 59% of the total assets recorded by insurance companies.
During the first quarter, insurance companies collected gross premiums amounting to 669.1 million, which is by 0.7% more than the gross premiums collected in the same period of the previous year.
As in previous years, in the first three months of 2024, most of the insurance premiums were directed to the non-life insurance business, which held a share of 96.2% in the total gross premiums written by insurance companies, while the value of gross written life insurance premiums was 25.6 million (3.8%), the lowest value in the last five years. Compared to the same period of 2023, the gross written premiums related to life insurance grew by 0.1 million or 0.3%.
In the total gross written non-life insurance premiums, the largest shares were held by the Compulsory third-party car liability insurance (which includes internal RCA, Green Card, TIR Carnet, CMR Carnet), Land vehicle insurance, other than railway (CASCO) and Fire and other natural disaster insurance, accounting for over 86.6% of the market. The other classes of insurance totaled less than 30 million lei or 4.7% each.
The average premium for domestic MTPL insurance in the first quarter of 2024 was 1,503 lei/unit, by 248 lei/unit or 19.8% more than in the same period of the previous year. For Green Card insurance, the average premium in the same period was 1,205 lei/unit, by 150 lei/unit or 11.1% less than in the first quarter of 2023.
During the first quarter, insurance companies reported gross compensation paid for the two categories of insurance in the amount of 265.6 million, by 30.9 million lei or 13.1% more than the compensation paid during the similar period of the previous year.
On March 31, 2024, there were nine insurance companies operating in the Republic of Moldova, of which eight companies practiced only non-life insurance activity and one composite company simultaneously carried out non-life and life insurance activity. There were also 50 insurance or reinsurance brokers, 51 insurance agents and 33 bancassurance agents.
