Friday, June 13 2014 17:59
Tangible premium income allows Armenian insurance companies to considerably increase profit
ArmInfo. In Q1 2014 the accumulated profit of 7 insurance companies of Armenia grew almost 4-fold to 1.453 bln AMD by 1 April 2014 (43% year over year decline). In the structure of accumulated profit, the net profit demonstrated a similar quarterly growth (more than 3-fold year over year growth).
According to the Ranking of Insurance Companies of Armenia by the Agency of Rating Marketing Information (ArmInfo), the 4-fold quarterly growth was due to the fact that in Q1 2014 the companies increased their premiums by 41.5% to 10.1 bln AMD (10.1% year over year decline) and decreased the insurance payouts by 3.5% to 4.9 bln AMD (5.2% year over year growth).
The source says that 3 companies demonstrated quarterly growth in accumulated profit: Armenia Insurance - 5.1%, Nairi Insurance - 21.2%, and Garant Insurance zeroed its loss and demonstrated profit with almost 3-fold rise. It should be noted that Garant Insurance is still being merged with Rosgosstrakh Armenia, therefore its premiums and payouts underwent 95.1% and 61.4% quarterly decline, respectively.
In terms of accumulated profit, Armenia Insurance is in the lead with 1.6 bln AMD (21.7% year over year growth). Nairi Insurance ranks next with 1 bln AMD (2.5-fold year over year growth). Garant Insurance is the third with 131.2 mln AMD (52.2% year over year growth). In Q1 2014, 4 insurance companies accumulated negative profit: INGO Armenia - 142.1 mln AMD, Sil Insurance - 238.8 mln AMD, RESO - 436.2 mln AMD and Rosgosstrakh Armenia - 531.4 mln AMD.
The own capital of the companies totaled 15.4bln AMD, which is 6.9% more than in Q4 2013 and 5.1% more than in Q1 2013. The share of the authorized capital made up 85.7% or 13.2ln AMD, that of the accumulated profit 9.4%.
The aggregate current obligations of the companies totaled 28.9bln AMD or 65.2% of all of their obligations, which is 11.6% less than in Q4 2013 and 1.5% more than in Q1 2013. The share of payables in the current obligations made up 7.1% or 2bln AMD (44.9% and 55.6% respective drops).
The share of insurance reserves in the companies' current obligations made up 61.1% or 17.7bln AMD. In Q1 2014 this index grew by 4.5%, as against Q1 2013 it dropped by 15.2%. Rosgosstrakh-Armenia had the biggest reserves during the period – 5.7bln AMD and was followed by INGO Armenia with 4.4bln AMD, Nairi Insurance with 2.9bln AMD, RESO with 2bln AMD, Sil Insurance with 1.5bln AMD and Armenia Insurance with 1.1bln AMD.
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