In 2016 Armenian insurers speeded up billing and slowed down payoffs decrease

ArmInfo. Armenian insurance companies premiums in 2016 grew up for 6,8%, within the indemnities drop down for 13,7%. By January 1, 2017 the  aggregate volume of insurance premiums formed AMD 32.2. bln, and the amount of insurance indemnities stands at AMD 14.1 point ( the figures are picked from the Insurance Companies reports due to IFRS standards).

According to the ranking of Armenian   insurer companies prepared by ArmInfo, in the result of flows mentioned  Armenian insurance system summarized the year with a net profit equal to AMD 3,6 bln  within the growth promotion for 3,4%.  In respect to the year reported, the billing slowdown has been observed at 1 company from 6  of those actually performing at Armenian market, while the reimbursement drop down has been fixed at two  insurance  entities. According to IC portfolio reports under the standards of Armenian Central Bank  the insurance premiums formed AMD 32,9 bln ( within the annual growth for 5%), and that of  indemnities  made AMD 14,2 bln ( 4,9 % annual growth).

In respect to the total of premiums billed the first position is traditionally occupied by Rosgosstrakh Armenia showing the result of AMD 9,3 bln. The second row  is conquered by INGO Armenia with its portfolio keeping AMD 8,6 bln. TOP-3 is lined by  Nairi Insurance IC with the insurance premium forming a  value of AMD 3.7 bln. Fifth position is taken by Reso  IC with the result forming   AMD 3.1 bln.  Last position is occupied by   Armenia Insurance IC with  insurance premiums  portfolio at  AMD 1.7 bln.

In the structure of insurance billing the vast majority share is conventionally gone to OSAGO - 55,3 %, or AMD 18,2 bln  ( 3,5 % annual growth). In the sector of  optional/voluntary insurance IC-s billing formed AMD 5,5, bln, or 16,8% share of total volume of insurance premiums.  The share of property risks related insurance, particularly in respect to fires and disasters, formed 10,02 % of all the volume of premiums, or AMD 3,3, bln ( annual growth at 9,5%). The CASCO section (dryland transportation means) insurance companies collected  a total of premiums equal to  AMD 1,9 bln or 5,9% of the total volume of premiums ( annual dropdown for 10,2%).

In addition, due to 9 insurance categories Armenian insurers billed AMD 3,9 bln, but  due to 4 insurance categories (water-borne traffic, water-borne traffic operation related liabilities insurance, proposed security insurance and loan risks insurance) Armenian  insurers transactions during for the period reported is none.  It is necessary to mention that it is only Rosgosstrakh Armenia that deals with loans risks insurance, and the sector of air carriage insurance is occupied only by two Companies - Rosgosstrakh Armenia and INGO Armenia.

For comparison, in 2015 the insurance billing of six insurer companies of Armenia grew for 2,8%, within the indemnities dropdown for 37,1%, and the net profit increase fot 71%. And due to these three indicators the leadership is taken by RosGosstrakh Armenia IC.  In the total volume of six IC-s the OSAGO share formed 56,1%, the deal of medical insurance made 16,3%,  fire and disasters related property insurance made 9,6% and the CASCO stood at 6,9%. Due remaining 9 categories billing formed AMD 3,5 bln, with zero indicator in trespect to 4 classes (water-borne traffic, water-borne traffic operation related liabilities insurance, proposed security insurance and loan risks insurance).

To remind, the insurance market comprises 6 companies, which act in respect to 17 categories of those 19 existing, except railway transport insurance and   legal/extrajudicial expenses.  INGO Armenia is certified and licensed under 17 insurance classes (and it's the sole company working in  the aspect of water-borne traffic), which is followed due to  licenses per classes by Rosgosstrakh Armenia, possessing 15 insurance categories ( and the only company dealing with loan risks insurance). As of 31.12.2016, the forex rate of Armenian Dram to US Dollar  formed  AMD 483,94/USD 1.