Insurance market grows to 6.8 billion in Q1

 Romania's insurance market continued to expand in the first quarter of 2026, with total gross written premiums reaching approximately 6.8 billion lei, up 15% compared with the same period last year, according to Alexandru Petrescu, president of the Financial Supervisory Authority (ASF)."In the first quarter of 2026, Romania's insurance market continued to record positive growth, with total gross written premiums of approximately 6.8 billion lei, an increase of 15% compared with the same period of the previous year."Motor Third-Party Liability (MTPL) insurance remained a key pillar of the market, generating around 2.7 billion lei in gross written premiums, up 13% year on year compared with the first quarter of 2025. This confirms the continued structural demand for this type of cover and its stable role within the market."The life insurance market also recorded positive growth in the first quarter of 2026, in line with the overall performance of the sector, although it continues to represent a relatively modest share of total premiums. Life insurance accounted for around 23% of total gross written premiums, confirming its stable contribution while remaining smaller than the general insurance segment."The performance of this segment points to gradually increasing interest in long-term financial protection products, although its pace of development remains more moderate than that of general insurance," Petrescu wrote on Facebook.He added that, from a financial stability perspective, the market's solvency indicators remain above regulatory requirements, reflecting insurers' strong capacity to meet their obligations. At the same time, liquidity indicators show a moderate adjustment resulting from increases in both liquid assets and short-term liabilities amid continued business expansion.According to the ASF president, overall developments indicate an insurance industry that continues to strike a balance between growth, claims-paying capacity and prudent investment, while maintaining its core role of providing financial protection against risks across the economy.According to the ASF's report on the insurance market in the first quarter of 2026, 24 insurance companies were authorised by the authority to operate in Romania, while 15 branches were conducting business under the Freedom of Establishment regime as of March 31, 2026.Total underwriting activity, including branches, amounted to approximately 6.8 billion lei in the first quarter of 2026, of which 77% consisted of gross written premiums from general insurance. Compared with the first quarter of 2025, underwriting activity increased by 15%, driven by a 12% rise in premiums written by ASF-authorised insurers and a 33% increase in premiums written by branches operating in Romania.The total value of Motor Third-Party Liability (MTPL) insurance premiums written by insurers authorised and supervised by ASF, as well as by branches and insurers operating under the Freedom to Provide Services (FoS) regime, reached approximately 2.7 billion lei, representing a 13% increase compared with the first quarter of 2025.Regarding the solvency of insurers authorised and supervised by ASF, market-wide solvency ratios remained above regulatory requirements at the end of March 2026, broadly unchanged from the same period of the previous year.The liquidity ratio for general insurance stood at 2.84 at the end of March 2026, slightly lower than during the other periods analysed. Compared with the end of March 2025, liquid assets increased by approximately 17%, while short-term liabilities rose by around 26%.For life insurance, the liquidity ratio stood at 3.46 as of March 31, 2026, down from 3.66 at the end of March 2025. This reflected a 10% increase in liquid assets, while short-term liabilities grew at a faster rate of 17%.Total gross claims paid, including branches, amounted to approximately 3.3 billion lei in the first quarter of 2026, an increase of 17% compared with the same period of the previous year. Of the total, 81% related to general insurance and 19% to life insurance.The total value of insurance companies' investments, including unit-linked assets, stood at 39.5 billion lei, up 2% compared with the end of 2025. Romanian insurers continue to invest predominantly in fixed-income instruments, primarily government bonds, which accounted for around 62.9% of total investments at the end of March 2026.