Insurers in Montenegro reported a 38.7% decrease in core operating results during the first half of 2026, attributed to rising expenses that outpaced revenue growth, although increased investment earnings helped mitigate the overall profit decline.
A total of nine comparable insurers achieved operating revenue of €62.65 million, reflecting a 9.9% increase from the previous year. However, operating expenses surged by 13.8%, which negatively impacted profitability despite the growth in business activities.
The combined net profit for these insurers decreased by 3.4% to €7.12 million, a decline somewhat offset by a notable 24.4% rise in financial investment results.
Lovćen osiguranje led the sector with operating revenue nearing €15.8 million, closely followed by Sava osiguranje, which reported €11.1 million. Notably, Sava’s net profit saw a significant increase of 41.7% to €1.81 million.
Wiener Städtische life insurance also demonstrated strong performance, with revenue increasing by 20.2% to approximately €7.3 million, while its profit surged 71.9% to around €970,000.
In contrast, both companies under the Uniqa brand reported losses. The non-life insurer posted a loss of approximately €528,000, down from a profit of €326,000 the previous year, while its life insurer recorded a loss of around €90,000, compared to a profit of €21,000.
The mixed results highlight that while revenue growth is evident within the sector, it has not uniformly translated into improved earnings. Moving forward, the primary challenge for insurers will be to enhance profitability in their core operations as they navigate rising expenses.
