Thursday, January 24 2013 20:13
Consolidation of Armenian insurance market continues: Rosgosstrakh Armenia acquires Garant Insurance
ArmInfo. The process of consolidation in the Armenian insurance market continues. ArmInfo has been informed by a reliable source that the largest insurance player Rosgosstrakh Armenia, the subsidiary of Rosgosstrakh (Russia), is acquiring Garant Insurance, which specializes in health insurance. ArmInfo has not yet managed to receive the official confirmation of the deal and its mechanisms (portfolio purchase or acquisition). However, the source says that on the threshold of possible introduction of a compulsory heath insurance system in the country in 2014, the deal will make Rosgosstrakh Armenia's positions in this segment of the market even stronger.
To note, the shareholders of Garant Insurance are 2 individuals and Arabkir Medical Center, but the ultimate beneficiary is Ara Babloyan, Armenian MP, owner of Arabkir Medical Center, former health minister of Armenia.
According to the Ranking of Insurance Companies of Armenia by the Agency of Rating Marketing Information (ArmInfo), as of 1 Oct 2012 the equity capital of Garant Insurance amounted to 1.9 bln AMD (5th position), authorized capital - 1.6 bln AMD (3rd position), assets - 3.8 bln AMD (5th position), insurance premiums - 2.9 bln AMD (5th position), insurance indemnities - 1.1 bln AMD (4th position). Nearly 66% of the company's insurance premiums fall on health insurance, and over 31% - on motor third party liability insurance. In the structure of indemnities over 50% fall on motor third party liability insurance and about 45% - on health insurance. Over Jan-Sept 2012 Garant Insurance secured 1.9 bln AMD pre-tax profit in insurance (5th position). Garant Insurance deals with 12 out of 16 insurance classes in the Armenian market.
As of 1 Oct 2012, Rosgosstrakh Armenia had an equity capital of 2.6 bln AMD (1st position), authorized capital of 2.5 bln AMD (1st position), assets - 9 bln AMD (2nd position), insurance premiums - 7.8 bln AMD (1st position), insurance indemnities - 3.2 bln AMD (1st position). In the insurance premiums of the company over 48% falls on motor third party liability insurance, over 30% - on health insurance, about 5% - on CASCO, over 5% - on property insurance. In the structure of the company's indemnities about 72% falls on motor third party liability insurance. Over Jan-Sept 2012 the company has a profit of 4.6 bln AMD in insurance (2nd position). The company deals with 15 out of 16 insurance classes in Armenian market and is still the only company licensed to insure the loan risks.
To note, in 2010-2012 London-Yerevan and Alfa Insurance left the Armenian insurance market by transferring their portfolios to Rosgosstrakh Armenia; Griar Insurance and Cascade Insurance left the market by transferring their portfolios to INGO Armenia; and ISG transferred its portfolio to RASCO. After the aforementioned deal the Armenian insurance market will have 6 companies.