Dunav Osiguranje: 4.5 Billion Dinars in Profit, Kasko Up 22%

Dunav Osiguranje closed 2025 with a net profit of 4.5 billion dinars (about 38.4 million euros at an exchange rate of roughly 117.2 dinars to the euro), almost a billion more than the year before. That is growth of close to 30 percent, driven by operating revenue that climbed by about 1.5 billion dinars, to 50.6 billion.

The consolidated annual financial report was adopted at an extraordinary shareholders’ meeting. Besides the parent company, it covers seven subsidiaries: Dunav Re, Dunav Auto, Dunav Auto Logistika, the company managing the voluntary pension fund, and Dunav Stockbroker, all in Belgrade, plus Dunav Osiguranje and Dunav Auto in Banja Luka. The group employed an average of 3,536 people.

Premium Income Tops 63 Billion Dinars

The group’s total active premium stood at 63.2 billion dinars at the end of 2025, up from 57.7 billion a year earlier. Almost all of that 5.5 billion dinar increase came from non-life insurance, where premium income rose from 52.5 to 57.4 billion dinars. Life insurance edged up from 5.1 to 5.8 billion.

Three lines account for most of the non-life portfolio:

• motor vehicle kasko insurance, from 6.8 to 8.3 billion dinars
• mandatory motor third party liability insurance, from 17.5 to 18.7 billion
• property insurance, from 18.7 to 19.5 billion

Why Is Kasko Growing Faster Than Other Lines?

Kasko was the only line that added a full 1.5 billion dinars in premium over the year, a growth rate of about 22 percent. Mandatory motor liability insurance grew around 6.9 percent, and property insurance about 4.3 percent. Kasko is a voluntary product, and its premium tracks the value of the vehicle fleet, the cost of parts and repairs, and how willing owners are to pay that price.

The same pattern shows up on the claims side. For motor liability insurance, the group paid out 8.1 billion dinars in settled claims, nearly a billion more than at the end of 2024. Kasko claims came to 4.4 billion. That puts the ratio of claims paid to premium collected at around 53 percent for kasko against about 43 percent for mandatory motor liability: kasko brings in less than half the premium of mandatory insurance, yet pays out more than half its claims. The group’s total settled claims as of the last day of December stood at 25.7 billion dinars, just over a billion more than a year earlier.

Reserves and Balance Sheet

Claims reserves were set at 28.7 billion dinars, three billion more than at the end of 2024, growth of 11.6 percent that management attributes to the expanding portfolio. “Reserves for non-life insurance claims grew by almost 11 percent, and reserves for life insurance claims by 5.4 percent,” the report states. The group’s technical reserves reached about 60 billion dinars, six billion more, which, according to the report, ensures full coverage of the prescribed forms of investment in Serbia and Republika Srpska.

Capital rose from 26 to 28 billion dinars. Long term liabilities were more than halved, from 3.6 to 1.6 billion: loans fell from almost a billion to 400 million dinars, lease liabilities from 1.7 billion to a billion, and other long term liabilities from a billion to 200 million. Short term liabilities held steady at 1.6 billion. The cost of that deleveraging shows up in cash on hand, which fell from 3.4 to two billion dinars.

Management’s report assessed that the conflict in the Middle East and the accompanying geopolitical tensions have no measurable impact on the group’s operations:

The company has no business relations, market, supply chains or investments tied to that region, so no negative consequences for current operations are expected.

What Shareholders Received

The 2025 dividend was paid out on July 7, 2026, in a total gross amount of 1.89 billion dinars (about 16.1 million euros). The shareholders’ meeting decided on the payout on April 28, 2026, and the right to receive it went to everyone registered with the Central Securities Registry as of April 18, 2026.

The Republic of Serbia, which owns 76.70 percent of the shares, received 1.45 billion dinars. The Share Fund, holding 3.61 percent, received 68.33 million, while the remaining shareholders, who together hold 19.69 percent, received a combined 372.69 million dinars gross. The payout equals just over two fifths of consolidated net profit for the year, with the rest kept in the company, matching the two billion dinar rise in capital.

Stock Market: Shares Trading Below Book Value

Dunav Osiguranje shares, ticker DNOS, are trading at 1,850 dinars. The stock fell 2.1 percent last week on turnover of 2.9 million dinars, while the Belex15 index closed the week at 1,218.4 points. Over the past 365 days the range has run from 1,506 dinars in late August 2025 to 2,100 dinars in late March this year.

At that price, market capitalization is about 28 billion dinars (roughly 239 million euros), practically equal to the group’s book value of capital. Measured against last year’s profit, that puts the multiple at around 6.2, a level at which the domestic market has for years kept shares where the state holds a controlling stake and free float is thin. The next test will be the half year report, which will show whether kasko keeps pulling premium growth, and at what cost in claims.