Armenian insurance companies increased net profit by 34% to $7.3 mln in 2016

ArmInfo. In 216, the net profit of Armenian insurance companies grew by 34% (versus 71% rise a year before) to 3.6 bln AMD or $7.3 mln.

ArmInfo's analysts think that upward dynamics was retained due to improvement of the trend of insurance premiums from 10.8% decline to 6.8% growth and considerable slowdown in insurance indemnities decline from 37.1% to 13.7%. In Q4 alone, the net profit of the insurance companies sharply accelerated decline from 3% to 87.3%, totaling 162.5 mln AMD or $0.3 mln. The profit of one insurance company dropped by 72%, and two companies demonstrated a slight growth - only 2-18%.

According to ArmInfo's Ranking of Insurance Companies of Armenia, 4 out of the 6 insurance companies in Armenia increased their net profit, with two of them - RESO and SIL Insurance - demonstrating tangible growth (3-14-fold).

Rosgosstrakh Armenia retained leadership in terms of net profit - 1.1 bln AMD (down 0.1% versus 2015).  INGO Armenia ranked next with 939.5 mln AMD (up 93.7%). Nairi Insurance was the third with 882.9 mln AMD (up 33.9%). Armenia Insurance was the fourth with 384.4 mln AMD (down 4.3%), RESO was the fifth with 205.3 mln AMD (up 14-fold), and SIL Insurance was the sixth with 9.01 mln AMD (up almost 3-fold).

In 2016, the aggregate amount of insurance premiums was 32.2 bln AMD ($66.6 mln), and the aggregate amount of insurance indemnities was 14.1 bln AMD ($29.1 mln). In Q4 alone, the insurance premiums rose by 23.6% to 9.1 bln AMD, while the indemnities grew by 18.5% to 4.3 bln AMD. As a result, the aggregate profit increased by 31% to 18.2 bln AMD (versus 2.1-fold growth in 2015), and in Q4 alone it increased by 28.5% to 4.8 bln AMD (versus 15.4% decline in Q4 2015). In 2016, INGO Armenia demonstrated the highest profit - 5.2 bln AMD (up 14.1%).  Rosgosstrakh Armenia ranked next with 4.8 bln AMD (down 2.1%), Nairi Insurance retained the third position with 3.7 bln AMD (10-fold growth). SIL Insurance, RESO and Armenia Insurance were the fourth, the fifth and the sixth with 1.8 bln AMD, 1.79 bln AMD and 987.7 mln AMD, respectively. 

To note, there are 6 companies in the insurance market of Armenia, which provided services 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 (on 31 Dec 2016, the AMD/USD exchange rate was 483.94 AMD/$1).