The Montenegrin insurance market last year achieved a net profit of 11,9 million euros, which is a 4,6 percent decrease compared to the year before when the profit was 12,5 million, and the decline in profit is a consequence of rising costs and macroeconomic pressures.
According to the Report on the State of the Insurance Market, prepared by the Insurance Supervision Agency (ANO) and which has entered the parliamentary procedure, eight out of nine insurance companies performed positively, and the sector continued to operate stably, solvently and liquidly, with a high level of promptness in resolving claims.
“The slowdown in economic growth to 2,7% with an inflation rate of 3,9% in 2025 has created a more complex macroeconomic framework for business. On the demand side, inflationary pressures have affected the purchasing power of citizens and imposed the need for more careful management of operating costs in the corporate sector. Despite these challenges, the insurance market has maintained the strong growth dynamics of previous years, achieving a nominal growth of 10,5%. This positive trend is primarily based on the stability and dominant participation of non-life insurance, whose key lines and mandatory character function as a market stabilizer in volatile times, with the simultaneous continuation of the positive contribution of voluntary non-life insurance and the life insurance segment. On the supply side, inflation continued to put pressure on the growth of insurers’ operating costs and the costs of resolving claims, but the sector has successfully cushioned these pressures, as well as specific systemic risks in the domain of IT security and climate (ESG) changes,” ANO, whose president is Advice Marko Ivanovic.
Data shows that the assets of insurance companies reached the sum of 370,3 million euros, which represents an increase of 10,3 percent compared to the comparable annual period when assets amounted to 335,7 million.
The Agency’s analysis shows that insurers continued the investment policy from the previous period in 2025, with government bonds remaining the dominant form of investment due to the acceptable level of risk, satisfactory returns and liquidity. At the same time, limited activity on the Montenegrin capital market and high transaction costs on foreign markets influenced the retention of such an investment strategy. Total investments in bonds at the end of 2025 amounted to 264,9 million euros, compared to 240,1 million euros a year earlier, which accounts for 71,5 percent of the total assets of the insurance sector. Of this, 214,5 million euros were invested in government bonds of Montenegro (2024: 211,3 million euros), which, according to the Agency, indicates a high level of investment concentration and exposure to the credit risk of a single issuer. 180,5 million euros were placed in long-term government bonds, while 34 million euros were invested in short-term bonds.
Insurance premium growth
The data shows that the total gross written premium was 148,3 million euros, which represents an increase of 10,5%, or 14,1 million euros compared to the premium generated in 2024. Observed by insurance groups, the total life insurance premium amounted to 30,9 million and recorded an increase of 11,3%, while the total non-life insurance premium amounted to 117,4 million and achieved an increase of 10,3% compared to the comparable annual period.
“As in other emerging markets, the dominant share of total premiums is accounted for by non-life insurance, with the largest share of mandatory insurance. In 2025, there was a slight increase in the share of voluntary insurance premiums compared to 2024,” the report states.
ANO’s analysis shows that last year the most common type of insurance on the market was still motor vehicle liability insurance with an invoiced premium of 51,2 million euros, which represents 34,5% of the total market premium, and compared to 2024, a slight decline in participation of 0,9 percentage points was recorded.
“In addition to this type, a significant share in the total premium was also achieved by life insurance (18,9%), accident insurance (11,7%), motor vehicle insurance (8,9%) and other property insurance (8,6%). The five types mentioned together account for 82,6% of the total market premium in 2025, which is at the same level as in 2024. These indicators indicate a high degree of market concentration,” ANO pointed out.
Podgorica is the market leader, the coast with more expensive policies
Data show that the largest contribution to the total non-life insurance premium is made by Podgorica, with a share of as much as 50% of the total market, which confirms, according to ANO, that the capital is the main economic and administrative center of the country, with the highest concentration of population, economic entities and vehicles, which has a dominant impact on the volume of insurance. Nikšić is in second place, with a share of 11,7%, while the municipalities of Bar (5,2%), Budva (4,3%), Tivat (3,4%), Herceg Novi (3,2%) and Bijelo Polje (3,2%) also make significant contributions.
“The coastal region stands out in particular for its high average policy amount, which may be related to more developed tourism, more expensive property, and a greater number of luxury vehicles and business activities,” ANO assessed.
The largest contribution to the total life insurance premium is made by Podgorica, with a share of as much as 47,6%. In addition to Podgorica, significant contributions are made by Nikšić (7,9%), Budva (6,8%), Bijelo Polje (5,9%), Kotor (5,3%), as well as Bar and Herceg Novi with a share of 4,8% each.
“Observing the distribution of premiums in non-life insurance, it is evident that there is an even distribution between legal entities and individuals. Individuals most often contract motor vehicle liability insurance, accident insurance, comprehensive insurance and travel insurance, while legal entities predominantly contract property insurance, motor vehicle liability insurance, comprehensive insurance, accident insurance and health insurance,” the Agency states.
On the Montenegrin insurance market last year, nine insurance companies performed insurance business, of which four were for life insurance (Grave, Lovćen životno, Unika životno and Viner Štediše) and five companies were for non-life insurance (Lovćen non-life, Unika non-life, Sava, Generals and Grawe lifeless).
65,5 million euros were paid for compensation claims
Insurers paid out 65,5 million euros last year, representing a 9 percent increase in
compared to 2024 when 60 million were paid.
ANO explained that this growth was contributed by the increase in the number of compensation claims and the increase in the costs of resolving compensation claims, due to inflationary trends in the economy.
“At an aggregate level, the total number of claims to be resolved in 2025 was 111.457 and increased by 16,4% compared to 2024, when it was 95.762. The growth was mainly contributed by the increase in the number of claims in non-life insurance, while the total number of claims in life insurance was 4.002 and there was no significant change in the number of claims to be resolved compared to the previous year.
“In 2025, a high level of promptness in resolving claims was achieved, as 91,6% of the total number of claims to resolve were resolved,” ANO explained.
Lovćen and Sava insurance with the largest market share
When it comes to the distribution of market shares of insurance companies, the largest market share measured by gross written premium was held by Lovćen Insurance with a 27,7 percent share (41 million premiums). This is followed by Sava Insurance with a 17,7 percent share (26,1 million premiums), Unika Non-Life Insurance with 16 percent (23,7 million euros), Generali Montenegro with 9,9 percent (14,7 million), Viner Štediše Life Insurance with 9,6 percent (14,3 million premiums), Grave Non-Life Insurance with 8 percent (11,8 million premiums), Grave Insurance with 5,1 percent (7,6 million premiums), Lovćen Life Insurance with 5 percent (7,4 million premiums) and Unika Life Insurance with 1,1 percent (1,6 million euros).
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