ASSESSMENT OF THE FINANCIAL STABILITY AND SOLVENCY OF AN INSURANCE COMPANY (USG INSURANCE COMPANY AS AN EXAMPLE)

Abstract

The article examines the financial stability and solvency of PJSC “IC “Ukrainian Insurance Group” over the period 2022–2025. The study is based on the analysis of key financial indicators, including gross and net insurance premiums, insurance claims, financial results, balance sheet structure, liquidity ratios, and efficiency of current assets usage. The purpose of the research is to identify trends in the company’s financial performance and assess its ability to maintain stable operations and meet its obligations under changing market conditions in Ukraine’s insurance sector. The analysis shows that in 2023 the company experienced a deterioration in financial performance, which resulted in a net loss. This was primarily driven by a significant increase in insurance claims and higher operational pressures, which negatively affected profitability indicators and overall financial stability. At the same time, despite a relatively stable level of gross premiums, the imbalance between income and expenses led to weakened financial results. In 2024–2025, a positive recovery trend is observed. The company demonstrates a significant increase in insurance premiums, improved operating results, and a return to profitability in 2025. Net profit grew substantially compared to previous years, indicating improved efficiency in underwriting activities and better risk management. The growth of premiums from individuals also reflects strengthening market positioning in the retail insurance segment. The balance sheet analysis shows growth in total assets and equity capital, although liabilities also increased at a faster rate in some periods. This indicates the need for improved capital structure management to ensure long-term financial stability. Liquidity indicators remain significantly above normative values, confirming a high level of solvency; however, such excessive liquidity may also indicate inefficient allocation of financial resources. The analysis of current assets structure reveals a dominant share of cash and cash equivalents, while the share of receivables is gradually increasing. Efficiency indicators of working capital demonstrate positive dynamics, including higher turnover ratios, reduced turnover period, and increased profitability of assets. Overall, the results of the study indicate that the financial condition of the company has improved significantly in 2025 compared to the crisis period of 2023. Despite certain structural imbalances, PJSC “IC “USG” demonstrates stable solvency, strengthening financial resilience, and improving operational efficiency, which confirms its positive development trend in the insurance market.