As I began preparing this text, it became clear that with only slight changes to the names of certain countries, and by repeating many of those mentioned in last year’s Word by Director, I could almost reuse last year’s text – hardly an optimistic one.
The war in Ukraine and the humanitarian and civilizational crisis in Gaza continue unabated. Neocolonial ideas are increasingly translating into concrete actions, as illustrated by the case of Venezuela and the explicit ambitions directed at its resources, as well as by renewed discussions about the acquisition of Greenland. The international order as we have known it since 1945 is breaking down, and the principle of “might makes right” is becoming ever more dominant.
At the same time last year, Bosnia and Herzegovina was buried under snow, which eventually melted. The authorities’ response was inadequate. This year, snow has fallen again and begun to melt, raising fears of flooding, which fortunately never materialised. This morning, with temperatures at -14°C, Sarajevo is locked in ice. Once again, the authorities have fallen short, but the political parties responsible for the situation have stepped up their PR efforts.
Thanks to modern technology and the ease of aerial photography with drones, we could see how floodwaters threatened a large warehouse complex and the Customs Terminal in Rajlovac, a suburb of Sarajevo, right on the banks of the Bosna River. Interestingly, neither the authorities nor the investors seem to consider the river’s proximity a problem; however, unlike in 2014, it appears that some protective measures have been put in place. Walls built in the meantime seem to have prevented any serious damage.
Globally, 2025 marks the sixth consecutive year in which insured losses from natural hazards have exceeded USD 100 billion, reaching a total of USD 107 billion. Although this represents a 24% decrease compared to 2024, the overall trend remains concerning. Two events were primarily responsible for this level of losses: the wildfires around Los Angeles, with losses of around USD 40 billion, and several convective storms across the United States. Together, they accounted for 83% of all insured natural hazard losses worldwide.
It remains to be seen how the new geopolitical reality will impact the global economy. On the domestic front, inflation in Bosnia and Herzegovina was estimated by the Central Bank at 4.2% in 2025. The slightly higher-than-expected inflation was driven by rising food and energy prices, as well as an increase in the minimum wage in the Federation of Bosnia and Herzegovina. The Central Bank projects that inflation will ease to 3.8% in the first quarter of 2026.
The insurance market in Bosnia and Herzegovina faced a challenging year, but overall, it can be considered successful. In 2025, the market was served by 24 insurance companies and one reinsurance company. During the first nine months of the year, they generated premiums in the total amount of BAM 895,190,603 (EUR 457,703,687), representing an 8.60% increase compared to the same period in 2024.
According to Bosna RE estimates, the total premium in Bosnia and Herzegovina in 2025 is expected to reach BAM 1,179,000,000 (EUR 602,813,128). For 2026, we forecast premium growth to BAM 1,250,000,000 (EUR 639,114,851), representing an increase of 6%.
In 2025, Bosna RE expects to achieve a reinsurance premium of BAM 122,328,048 (EUR 62,545,338), which would represent an increase of 11.22% compared to 2024.
Such a result would exceed our projected plan. We also anticipate achieving a gross profit of BAM 4.8 million (EUR 2.45 million), which would be 16.79% higher compared to 2024 and slightly above the planned gross profit for 2025.
For 2026, we anticipate the successful renewal of reinsurance contracts with our cedents, as well as retrocession agreements. Given that the reinsurance market has emerged from the so-called “hard market” phase, our position is somewhat stronger than it was a year ago.
May 2026 be a year of easing international tensions, bringing an end to wars and conflicts, and a year of happiness, prosperity, and success for both you and us.
Director
Zlatan Filipović
January 15, 2026
