The World Bank, through the International Finance Corporation (IFC), has announced an equity investment in two of Ukraine’s largest insurance companies — Kniazha and the Ukrainian Insurance Group (USG). Both companies are among the top 10 insurers in Ukraine and belong to the international Vienna Insurance Group (VIG). IFC will acquire 20% stakes in each of them.
IFC emphasized that the investment aims to strengthen the stability of the insurance sector, expand access to insurance services for households and businesses, and support the market amid Russia’s ongoing aggression. This marks the first time IFC is investing directly in the equity of Ukrainian insurance companies.
Peter Hofinger, Deputy CEO of VIG, noted that the group’s cooperation with IFC began in 2022, when the corporation acquired a stake in their Bulgarian pension fund Doverie. While the focus in Bulgaria is on developing pension services, IFC and VIG see expanding insurance coverage — essential for Ukraine’s future recovery — as a priority in Ukraine.
Harald Riener, VIG Management Board member responsible for the Ukrainian market, stated that Ukraine remains a strategic region for the group in Central and Eastern Europe. He highlighted the resilience of Ukrainian employees, which has enabled VIG’s companies in Ukraine to maintain stable operations and profitability even during the war. According to him, the collaboration between IFC and VIG will help deliver insurance solutions relevant for the country’s post-war reconstruction.
Vienna Insurance Group has been operating in Ukraine for 21 years and holds an 11% market share, ranking second in the country. In 2024, VIG’s three Ukrainian companies — USG, Kniazha VIG, and Kniazha Life VIG — collected €128 million in insurance premiums.
Amid the war, Ukraine’s insurance sector is undergoing transformation: over the past five years, the number of insurance companies has decreased nearly 3.5-fold, while total sector assets have grown by 42%. According to NBU Governor Andriy Pyshnyi, in 2025 the insurance sector’s share of GDP began to rise, reversing years of decline. As of 1 October, insurance penetration reached 0.84% of GDP.
