Armenian insurance companies increased net profit by 62.7% y-o-y to $8.2 mln in 9 months of 2016

ArmInfo. In Jan-Sep 2016, the net profit of Armenian insurance companies amounted to 3.9 bln AMD or $8.2 mln, with a 62.7% growth versus Jan-Sep 2015. In Q3 alone, the net profit of insurance companies totaled 1.3 bln AMD, or $2.7 mln, with a 3% decline versus Q2 due to 5-28% decrease in profits of three companies amid 1-45% increase in the remaining three companies.

According to the Ranking of Insurance Companies of Armenia by the Agency of Rating Marketing Information (ArmInfo), in Jan-Sep 2016, four out of the six insurance companies increased their net profit, with two of them (INGO Armenia and RESO) - 2- 5.4-fold as compared with Jan-Sep 2015. 

In terms of net profit, Rosgosstrakh Armenia retained leadership with 1.7 bln AMD (up 65.3% versus Jan- Sep 2015). The following companies ranked next: INGO Armenia - 848.1 mln AMD (2-fold year-over- year growth); Nairi Insurance - 652.6 mln AMD (up 36.8%); Armenia Insurance - 301.5 mln AMD (down 24.7%); RESO - 287.1 mln AMD (5.4-fold growth), SIL Insurance - 78.3 mln AMD (down 21.8% y-o-y).

In Jan-Sep 2016 versus Jan-Sep 2015, the aggregate amount of insurance premiums grew by 2.6% to 23.2 bln AMD ($48.8 mln), while the payouts rose by 2.4% to 9.8 bln AMD ($20.7 mln). In Q3 alone, the insurance premiums increased by 14.1% (to 7.3 bln AMD), while the payouts grew by 20% (to 3.6 bln AMD). In Jan-Sep 2016, the aggregate profit totaled 13.4 bln AMD (up 2.8% versus Jan-Sep 2015), and in Q3 alone - 3.8 bln AMD (up 11% versus Q2 2016). In terms of insurance profit, Rosgosstrakh Armenia retained leadership with 3.7 bln AMD (down 4.4% versus Jan-Sep 2015), including 860.3 mln AMD in Q3 2016. INGO Armenia and Nairi Insurance were the second and the third - 3.3 bln AMD and 2.7 bln AMD, respectively. Most significant growth of profits was registered by Nairi Insurance and RESO-35-40% y-o-y.

To note, there are 6 companies in the insurance market of Armenia, which operate in 17 classes (out of 19) of insurance. INGO Armenia (the only company insuring water transport) is licensed to provide services in 16 classes of insurance, and Rosgosstrakh Armenia (the only company providing credit risk insurance) provides services in 15 classes of insurance (as of 30 Sep 2016, the AMD/USD exchange rate was 474.46 AMD/$1).