Cosmos Insurance Public Company Ltd saw its annual profit climb to €3,207,597 in financial results published on March 27, 2026, marking a significant increase from the €2,683,414 recorded in 2024.

According to an announcement release don Monday, March 30, the improvement in the company’s results was mainly driven by positive performance from its insurance operations.

The board of directors submitted its annual report and audited financial statements for the year ended December 31, 2025.

The company’s main activity remains general insurance business in Cyprus, unchanged from the previous year.

It provides services through its head offices in Nicosia and branches in Limassol, Paphos and Larnaca.

The Cyprus economy recorded growth of 3.8 per cent in 2025, compared with 3.4 per cent in 2024.

Preliminary fiscal results showed a general government surplus of €939.2 million or 2.6 per cent of GDP, compared with €1.439 billion or 4.1 per cent of GDP in 2024.

Economic growth was primarily supported by hotels and restaurants, information and communication, construction, and wholesale and retail trade sectors.

Total expenditure between January and December 2025 increased by €1.3649 billion or 10.3 per cent to €14.6759 billion, compared with €13.311 billion in the corresponding period of 2024.

Total revenue rose by €864.8 million or 5.9 per cent to €15.6152 billion, compared with €14.7503 billion in 2024.

Employment recorded a slight increase of 0.9 per cent, while unemployment fell to 4 per cent from 4.5 per cent in 2024.

The consumer price index increased by 0.13 per cent to 117.67 points, compared with 118.31 in 2024.

Inflation stood at minus 0.5 per cent in 2025, compared with 2.6 per cent in 2024.

The largest increases were recorded in services at 3.1 per cent, while the biggest declines were seen in electricity at minus 9.4 per cent and agricultural products at minus 5.8 per cent.

During 2025, international rating agencies upgraded Cyprus’ credit rating, strengthening investor confidence and confirming the country’s stable outlook.

In November 2025, Moody’s upgraded Cyprus by two notches from Baa2 to A3, marking the country’s return to A investment grade for the first time in 13 years.

In December 2025, Fitch upgraded Cyprus from BBB+ to A-, while S&P Global Ratings also proceeded with an upgrade in the same month.

These upgrades reflect improving macroeconomic indicators, fiscal discipline and financial system stability.

The company stated that the Russia-Ukraine war has led to sanctions on Russian entities, including restrictions on access to international financial markets and removal of several banks from the SWIFT system.

The European Union, the United Kingdom and the United States also imposed sanctions on the Russian central bank, limiting access to foreign reserves and introducing asset freezes and sectoral measures.

The situation remains fluid and could lead to further restrictions affecting companies operating in the region, although the full impact remains uncertain.

The company said it is not significantly affected by the Russia-Ukraine conflict, as its operations are limited to Cyprus.

However, management continues to monitor developments closely to implement mitigating measures if required.

The Israel-Gaza conflict has escalated significantly since October 7, 2023, creating broader economic uncertainty.

Companies with exposure to the region may face risks, while others may be indirectly affected through global financial markets.

The company stated that it has no direct exposure to the Israel-Gaza conflict, but continues to monitor the situation.

It also evaluates potential impacts through stress scenarios to assess its ability to continue as a going concern.

Management has assessed whether impairments are required for financial and non-financial assets, lease receivables and contractual assets based on current and expected economic conditions.

It has also reviewed the company’s ability to continue as a going concern under evolving conditions.

Future impacts of geopolitical developments remain difficult to predict and could affect financial performance, cash flows and overall position.

Management said it is taking all necessary measures to maintain the company’s viability and growth in the current environment.

In the insurance sector, limited merger and acquisition activity was observed in Cyprus during 2025, reflecting a broader global consolidation trend.

These developments are linked to efforts to enhance competitiveness and achieve economies of scale.

Management is monitoring sector developments, although there has been no direct impact on the company’s operations.

Insurance revenue for 2025 reached €22.61 million, up from €21.21 million in 2024, marking an increase of €1.4 million or 6.61 per cent.

The increase in insurance revenue was driven by growth across all business lines.

Insurance expenses rose to €16.21 million from €15.65 million, an increase of €560,000 or 3.58 per cent.

This rise was mainly due to higher claims in motor and fire insurance segments.

Investment income increased to €417,000 from €248,000 in 2024, supported by portfolio expansion and restructuring.

Operating and other expenses rose to €3.9 million from €3.7 million, an increase of €186,000 or 5.02 per cent.

This increase was mainly linked to higher payroll costs, professional fees, and advertising and promotion expenses.

Earnings per share stood at 0.0568 cents in 2025, compared with 0.0475 cents in 2024.

The company’s Solvency II capital adequacy ratio reached 232.64 per cent, compared with 199.02 per cent on December 31, 2024.

There were no changes in the company’s share capital during 2025.

The company does not hold any treasury shares either directly or indirectly.

It is exposed to key risks including insurance risk, market risk, liquidity risk and credit risk, which are monitored through established mechanisms.

No significant contracts were concluded with advisers or related parties beyond disclosed remuneration and agreements, the company reported,

In addition, there were no material research and development activities during the year.

Finally, the board decided to propose a dividend at the next annual general meeting, with the amount to be determined, while the remaining net profit will be transferred to reserves.