Poland’s insurance market: a new phase of growth and divergence

This article is a part of Poland Unpacked. Weekly intelligence for decision-makers

Poland’s insurance sector closed 2025 with record profits and positive results across all lines of business. The figures look impressive, but growing tensions are becoming visible – particularly in motor third-party liability (MTPL) insurance and in future investment income. Warta and Uniqa are growing aggressively, while PZU is only just gaining momentum, and Allianz is saying “no” to growth at any cost.

The results for the insurance sector for the fourth quarter – and thus for the full year 2025 – are already known. On March 26, detailed data were presented by the Polish Financial Supervision Authority (KNF), and on March 10 by the Polish Chamber of Insurance (PIU). This means we can now assess the sector’s condition, identify key trends, and highlight the winners and losers in the battle for market share.

Insurers earn more and report record results

Polish insurers have every reason to be satisfied. In 2025, the sector as a whole generated PLN 12.47 billion (approx. EUR 2.9 billion) in net profit, nearly one-quarter higher than a year earlier. This is also the highest result in the sector’s history, driven by record performances from individual players. Record-breaking results were reported by PZU, Warta, and Uniqa.

According to Krystian Wiercioch, Deputy Chair of the Polish Financial Supervision Authority (KNF), the increase in profits would not have been possible without an improvement in the technical result. This refers to the difference between premium income and claims paid, benefits, provisions set aside, and other costs incurred by insurers. The underwriting result reached a record PLN 8.5 billion (approx. EUR 2.0 billion). Property insurance (non-life business) performed better than a year earlier, with an improvement of PLN 1.6 billion year on year. This was driven in particular by policies protecting against natural perils and motor third-party liability (MTPL) insurance.

The investment side of the business should not be overlooked, however. Income from investments reached PLN 8.3 billion (approx. EUR 1.9 billion), up 15% year on year. Insurers invest premiums primarily in fixed-income securities, mainly government bonds. The bond portfolio grew by 8.8% over the year to PLN 111.5 billion (approx. EUR 26.0 billion), although the majority of these instruments were issued during a period of high National Bank of Poland interest rates. Meanwhile, since May 2025, the Monetary Policy Council (RPP) has cut the reference rate seven times, bringing it currently to 3.75%. This implies that in the coming years, the impact of declining interest rates will become increasingly visible in insurers’ financial results.

Motor Third-Party Liability and natural catastrophe insurance back in the black

In 2025, the sector reported positive underwriting results across all 23 insurance groups. Sales of all these products were therefore profitable. More than 57% of the overall result came from life insurance (Division I). Group 5 dominated – accident and health insurance – which is not part of traditional life insurance but rather an add-on to other products. The underwriting result of this line reached PLN 2.3 billion (approx. EUR 0.54 billion). Traditional life insurance followed, with a result of PLN 1.85 billion (approx. EUR 0.43 billion). In non-life insurance (Division II), the highest underwriting result was generated by motor comprehensive (AC) insurance, which protects vehicle owners against theft and damage.

What draws the most attention, however, is the positive result from insurance protecting against natural perils, which reached nearly PLN 550 million (approx. EUR 128 million). Equally notable was the improvement in the motor third-party liability (MTPL) segment. In 2025, the technical profit of this line amounted to PLN 71.5 million (approx. EUR 16.7 million), compared with a loss of nearly PLN 580 million (approx. EUR 135 million) a year earlier. Six insurers reported losses in this line, five fewer than the year before. However, profitability of this product (the ratio of technical result to earned premium on own account) remains marginal and does not exceed 0.5%.

According to Krystian Wiercioch, such minimal profitability calls for decisive action by individual market participants.

“KNF continues to carry out supervisory measures with respect to insurance companies that persistently maintain unprofitable business lines, thereby negatively affecting the stability of Poland’s insurance sector,” the KNF representative noted.

Premiums rise, with life insurance growing the fastest in two years

Rising gross written premiums had a positive impact on the underwriting results of individual lines. In 2025, insurers collected PLN 90.6 billion (approx. EUR 21.2 billion), up 5.7% year on year. The majority of this amount – over 72% - came from non-life insurance (Division II), driven primarily by the compulsory nature of motor third-party liability (MTPL) insurance. According to data from the Insurance Guarantee Fund (UFG), at the end of 2025 there were 31 million active MTPL policies in Poland, compared with, for example, 8.2 million voluntary motor comprehensive (AC) policies. As a result, MTPL accounted for 21% of total premiums in the entire insurance market. It was followed by AC insurance (16%) and traditional life insurance (12.2%). Together, these three product lines accounted for nearly half of the insurance market.

In its report, the Polish Chamber of Insurance (PIU) highlights particularly rapid growth in the life insurance segment (entire Division I). There are already 25.5 million such policies in force, of which 14.7 million are group policies offered through employers. These group products drove growth, as the number of insured individuals covered by group policies increased by as much as 21% year on year. Premiums in this segment rose by 5.2% (and by 6% in Division II), marking the highest increase in two years. The share of products with regular premiums, rather than single-premium products, is increasing in the sales structure. This improves the predictability of insurers’ results and supports their long-term stability.

“2025 was a year of steady growth for the life insurance market. The number of policies reached 25.5 million, and gross written premiums in Division I increased by 5.2% year on year. This proves that the insurance needs of Poles are growing, although there is still much to be done in this area,” commented Piotr Wrzesiński, Vice President of PIU.

Claims paid grew faster than premiums, but only marginally

For the second consecutive year, claims and benefits paid out under insurance policies grew faster than premium income. In 2025, insurers paid out a total of PLN 53.8 billion (approx. EUR 12.6 billion) to claimants, up 7% year on year. Notably, this growth rate is still twice as low as in the previous year, which was affected by flooding in southern Poland – then it reached 13.8%. A significant portion of those claims was covered by reinsurers (entities that assume part of the risk in exchange for a share of the premium), including as much as 28% in insurance protecting against natural perils and 29% in policies covering other personal losses. In the latter line, the reinsurers’ share rose to as much as 38% this time.

The highest payouts related to motor third-party liability (MTPL) insurance, amounting to PLN 12.8 billion (approx. EUR 3.0 billion), up 6.9% year on year. For another consecutive year, the main driver was the higher average claim value. According to the Polish Chamber of Insurance (PIU), it reached PLN 12,161 (approx. EUR 2,840), up 11% compared with the previous year. This increase is likely due, as in previous years, to rising repair costs in workshops and higher prices of spare parts. The Insurance Guarantee Fund (UFG) reports that the number of reported MTPL claims itself grew much more slowly – by only 2.4% year on year, to 1.04 million.

Claims rose across nearly all product lines, with the exception of insurance covering natural perils, where payouts fell by 13.5% year on year. This reflects a high base from the previous year, when insurers were compensating losses from flooded buildings in southern Poland. At the other end of the spectrum were other property insurance lines, mainly driven by hail and frost damage. Payouts in this segment increased by 22.3% year on year and were primarily directed to insured farmers.

In life insurance, Vienna Life and Warta are growing the fastest

In terms of market share, PZU Życie remains the undisputed market leader, a position it owes primarily to group insurance. Its premiums from such policies are three times higher than those from individual policies. It is followed by Allianz Życie (11.9%) and Nationale-Nederlanden (9.5%). Together, these three players account for nearly two-thirds of all premiums in Division I (life insurance).

In terms of premium growth rates, however, the market leader must concede to its competitors. Vienna Life is rapidly approaching the podium. The company – formed through the merger of three entities controlled by the Austrian VIG Group – has finally been able to accelerate following the consolidation. Its premiums grew by 17.9% to PLN 1.89 billion (approx. EUR 0.44 billion). The company has openly set its sights on becoming the third-largest player in the sector, a position currently held by Nationale-Nederlanden. While a year ago it trailed NN by PLN 734 million (approx. EUR 171 million) in premiums, that gap has now narrowed to PLN 470 million (approx. EUR 110 million). Warta, the fifth-largest player in the life segment, is also growing dynamically, increasing by 14.1% and holding a position just behind Vienna Life, with a premium gap of only PLN 70 million (approx. EUR 16 million).

In non-life insurance, Warta and Uniqa stand out

The property insurance market is more competitive than life insurance. The state-owned PZU holds a 27.51% market share. This remains the highest on the market, though it is 2 percentage points lower than in 2020. At that time, the second-largest player was Ergo Hestia, not Warta. Together, the three largest players account for 63% of the market.

As a result of mergers in recent years – Uniqa with AXA, and Compensa with Wiener – two players have emerged whose shares in non-life insurance exceed 6%. This marks a significant improvement, as in 2020 the fourth player, Uniqa, held only a 4.75% share.

Warta is increasing its premiums the fastest on the market. Over the past year, its premiums grew by 20.4% to PLN 13.2 billion (approx. EUR 3.1 billion). As a result, the gap between PZU and Warta narrowed by nearly PLN 2 billion (approx. EUR 0.47 billion) over the year, to PLN 4.85 billion (approx. EUR 1.13 billion). This was driven by PZU’s modest growth of just 1.9% alongside Warta’s ascent to the position of motor third-party liability (MTPL) market leader.

“In 2025, we took the lead in the motor insurance market while maintaining strong profitability. In an environment of rising costs, it remains crucial for us to combine scale with pricing discipline and a stable financial result,” commented Jarosław Parkot, President of Warta.

Allianz weakens as it “does not grow at any cost”

Uniqa also recorded dynamic growth, with its premiums rising by 11.8% to PLN 5 billion (approx. EUR 1.17 billion). In an interview with XYZ, CEO Marcin Nędzwiedzki emphasized that the company identified an opportunity in the motor third-party liability (MTPL) market and adjusted its strategy accordingly, even though MTPL is not a strategically core product for the firm. Such growth was made possible, among other factors, by the launch of the Pevno brand, which targets price-sensitive customers.

At the other end of the spectrum is Allianz, whose premiums contracted by 2.6%. CEO Marcin Kulawik stated in an interview with XYZ that the company prioritizes profitable growth. As a result, rather than focusing on MTPL, it concentrates on non-motor insurance lines.

The market is becoming increasingly polarized – some players are pursuing aggressive growth, while others focus on selective profitability. Warta and Uniqa are expanding their scale, taking advantage of favorable conditions, including in MTPL. At the same time, Allianz is deliberately limiting growth in unprofitable lines, which translates into a decline in premiums. PZU remains the market leader, but its advantage is gradually narrowing. As a result, the sector is transitioning from a phase of uniform growth to a more competitive and differentiated structure.
The sector’s record results are the product of an unusually favorable combination of factors. Net profit of PLN 12.47 billion (approx. EUR 2.9 billion) was driven both by an improvement in the technical result – particularly in motor third-party liability (MTPL) and natural catastrophe coverage – and by strong investment income. A key role was played by bonds purchased during a period of high interest rates. This effect, however, will gradually fade as National Bank of Poland rates decline. In practice, this means that sustaining such results in the coming years will be considerably more difficult.
Motor third-party liability (MTPL) insurance has formally returned to profitability, but in structural terms it remains a weak line of business. An underwriting result of PLN 71.5 million (approx. EUR 16.7 million) marks an improvement from losses, yet profitability below 0.5% is negligible, and six insurers still report losses in this segment. At the same time, the average claim value continues to rise, systematically increasing pressure on premiums. Polish Financial Supervision Authority (KNF) has clearly signaled that the lack of sustained profitability will be subject to supervisory action. This implies further premium increases are unavoidable.