Dunav Osiguranje increased consolidated net profit by 31% to RSD 3.86 billion (€33 million) in the first half of 2026, supported by stronger premium income and higher investment returns despite increasing claims-related expenses. Consolidated insurance premium income rose 9.2% to RSD 21.6 billion, while reinsurance premium income increased 0.5% to RSD 2.5 billion.
Total consolidated operating revenue reached RSD 25.7 billion, up 6.5% year on year. Investment performance provided an additional contribution to earnings, with profit from investing insurance funds increasing 36.6% to around RSD 1.5 billion.
Investment returns strengthen insurer earnings
Higher financial-market yields have become an important component of Dunav’s earnings as insurers invest funds backing future claims in assets including bonds, deposits and other financial instruments. The 36.6% increase in investment profit outpaced premium growth during the first half of the year. The National Bank of Serbia’s key policy rate stood at 5.75%, supporting comparatively attractive returns on dinar-denominated financial assets.
For Dunav, investment income therefore provided an additional earnings source alongside its insurance operations. The contribution can change as interest-rate conditions evolve. Lower Serbian and European interest rates would eventually reduce reinvestment yields as existing securities mature, leaving longer-term profitability dependent on premium growth, underwriting performance and claims management.
Claims expenses continue to increase
Dunav’s stronger results came despite continued increases in claims-related costs. At consolidated group level, reported operating costs declined 8.4% to RSD 17.1 billion, while insurance expenses net of reinsurance and retrocession commissions increased 3.7% to RSD 6.1 billion. Separately, figures for the parent insurance company showed higher operating expenses, partly reflecting increased wages and other personnel costs.
The measures cover different accounting categories and reporting scopes. The increase in insurance-related expenses remains significant for underwriting performance. Premium income growing by around 9% provides room to absorb higher claims costs, although continued claims inflation could place pressure on underwriting margins if pricing does not keep pace.
Dunav Osiguranje drives group profitability
The consolidated group includes businesses spanning insurance, reinsurance, pensions, vehicle inspection, logistics and brokerage. The parent company, Dunav Osiguranje, generated approximately RSD 2.36 billion of the group’s first-half profit. Its standalone profit increased by about 27% year on year, compared with the 31% growth recorded at consolidated group level. Most subsidiaries were profitable during the period.
Dunav Auto Logistika recorded a loss of approximately RSD 537,000, while Dunav Stockbroker reported a loss of around RSD 3.5 million. The results leave insurance as the principal source of earnings within the group.
Serbian state receives dividend income
Dunav’s stronger profitability also has implications for the Serbian state, which owns 76.7% of Dunav Osiguranje. The insurer distributed RSD 1.89 billion in gross dividends from its 2025 profit in July. The Republic of Serbia received approximately RSD 1.45 billion (€12.3 million). The Akcionarski fond, which holds a 3.61% stake, received RSD 68.3 million, while other shareholders received RSD 372.7 million. Dunav’s earnings therefore affect both the company’s capital position and the cash returns received by its shareholders.
Listed insurer provides market exposure
Dunav also has a distinctive position within Serbia’s capital market as a publicly traded insurance company. The company is a blue-chip constituent of the Belgrade Stock Exchange, with its shares recently trading at around RSD 1,810. Serbia’s capital market remains relatively shallow compared with neighbouring EU markets and has a limited number of large listed companies. Dunav combines a major domestic insurance business with majority state ownership, dividend distributions and publicly traded shares. Its earnings performance therefore represents one source of financial-sector activity available to investors through the domestic equity market.
Insurance demand linked to investment projects
Dunav’s financial position is also connected to Serbia’s wider investment activity. The country is entering an extensive investment period involving renewable energy, electricity networks, transport infrastructure, industrial facilities, logistics centres, real estate and data centres. Such projects require insurance coverage across areas including construction all-risk, erection all-risk, property, machinery breakdown, business interruption, liability and increasingly cyber risks.
Renewable-energy projects can require specialised coverage for turbines, solar equipment, transformers and substations, as well as protection against revenue interruptions. Banks and international investors frequently require insurance arrangements before project financing can be completed. A larger domestic insurance group can therefore participate in Serbia’s infrastructure and industrial investment activity, including through arrangements involving international reinsurers for larger exposures.
Earnings growth faces claims and rate risks
Dunav’s first-half performance reflects the combined effect of rising premium income and stronger investment returns. Consolidated profit reached almost RSD 3.9 billion in six months, compared with more than RSD 4.5 billion for the full year of 2025. At the same time, claims expenses and personnel costs are increasing, while a future decline in interest rates could reduce investment returns. The development of premium income, underwriting results and investment performance will therefore remain central to the group’s earnings as the year progresses.
