Non-Banking Financial Sector Grows: Record Business Lending and Rapid Insurance

Non-Banking Financial Sector Grows

In the third quarter of 2025, the Ukrainian non-banking financial sector demonstrated significant growth in asset volumes, particularly in the areas of insurance and business lending, despite existing challenges. Specifically, the assets of risk insurers increased by 10% compared to the previous quarter and by 31% year-on-year. Life insurer assets also grew, but at a slower pace—by 3% compared to the previous quarter and by 15% year-on-year.

Risk insurers' premiums increased by 9% compared to the previous quarter, while life insurers' premiums showed an even higher increase—by 12%. The asset volumes of financial companies stabilized in the third quarter following a previous decline. Business lending reached its highest level during the war, indicating a recovery in economic activity. Retail lending is also showing strong performance, remaining on a positive wave for five consecutive quarters.

Trends and Changes in the Sector

The share of non-banking financial institutions in the total assets of the financial sector is 8.9%. At the same time, the share of overdue debts has decreased to 25%, indicating an improvement in the financial condition of borrowers and a reduction in risks for lenders.

Starting from January 2026, insurers will be required to begin forming technical reserves according to updated methodologies. Additional requirements with a transitional period until July 2026 are being introduced for significant companies. These changes are aimed at increasing the stability and transparency of the non-banking financial sector, which, in turn, may support further growth.

Thus, the third quarter of 2025 was a landmark for the Ukrainian non-banking financial sector, demonstrating positive trends in insurance and lending, as well as a readiness to adapt to new regulatory requirements.

The growth of assets and lending in the non-banking financial sector indicates a recovery of the Ukrainian economy against the backdrop of challenges posed by the war. Positive results in the insurance sector and a decrease in the share of overdue debts point to an improvement in the financial situation of both businesses and the population. The updating of regulatory requirements may also strengthen confidence in the sector, stimulating further growth and development in times of instability.