In Q1 2016, Armenian insurance companies increased premiums by 6.7% over year, reducing payouts by 1.9%

ArmInfo. In Q1 2016, the premiums of the Armenian insurance companies grew by 6.7% versus Q1 2015, while the payouts dropped by 1.9%. By 1 April 2016, the aggregate amount of insurance premiums totaled 9.5 bln AMD, while the payouts exceeded 3.2 bln AMD (the figures are given from the insurance companies' reports according to the IFRS standards).

According to the Ranking of Insurance Companies of Armenia by the Agency of Rating Marketing Information (ArmInfo), in Q1 2016 the net profit of the insurance system was 1.3 bln AMD (2.1-fold growth versus Q1 2015). Two out of the 6 operating insurance companies in Armenia suffered decline in premiums. According to the reports of the insurance companies' portfolios by the Central Bank's standards, the insurance premiums amounted to 9.6 bln AMD (up 1.7% versus Q1 2015), with the payouts totaling 3.7 bln AMD (up 13.4%).

Rosgosstrakh Armenia was in the lead in terms of premiums - 2.9 bln AMD. INGO Armenia ranked next with 2.2 bln AMD. Nairi Insurance was the third with 1.7 bln AMD. SIL Insurance was the fourth with 1.4 bln AMD, RESO was the fifth with 794.5 mln AMD, and Armenia Insurance was the sixth with 480 mln AMD.

In the structure of insurance premiums, the biggest share of premiums fell on motor third party liability insurance (MTPL) - 60.5% or 5.8 bln AMD (down 6.6%). The share of health insurance (including the voluntary one) was 1.9 bln AMD or 19.8% (up 25.8% versus Q1 2015). The share of property risks insurance made up 5.6% or 533.5 mln AMD (down 2.3%). The share of motor own damage insurance premiums was 483.2 mln AMD or 5% (down 7.1%).

In addition, in 8 insurance classes the Armenian insurance companies collected 870.3 mln AMD. In Q1 2016, the Armenian companies did not conclude a single contract in 4 classes (water transport insurance, water transport use liability insurance, insurance of guarantees and credit risk insurance). It should be noted that the only company engaged in credit risk insurance is Rosgosstrakh Armenia. Meanwhile, only two companies - Rosgosstrakh Armenia and INGO Armenia - are engaged in air transport insurance.

To note, there are 96 companies in the Armenian insurance market, which provide services in 17 out of 19 classes of insurance (except for railway transport insurance, as well as judicial and extrajudicial costs insurance). INGO Armenia is licensed to provide services in 16 classes of insurance and Rosgosstrakh Armenia - in 15 classes of insurance. (As of 31 March 2016, the AMD/USD exchange rate was 480.79 AMD/$1).