Tuesday, November 12 2013 14:05
Insurance market of Armenia still operates at a loss
ArmInfo. Insurance Market of Armenia suffered 191 million drams net loss for Q3 2013. According to the Insurance Ranking of ArmInfo, insurers completed the Q2 of 2013 with 472 million drams net loss.
According to the Ranking, only 4 companies received net profits for the quarter under review. Nairi Insurance Company received the highest net profit - 152 million drams. Sil Insurance and Armenia Insurance go the second and the third with 58 million drams and 36 million drams net profits, respectively. These two companies were relatively passive in the sector of insurance premiums and indemnities. INGO Armenia received the lowest net profits - 7.6 mln drams.
The leading actors in the insurance market suffered loss in Q3 2013. Garant Insurance suffered 241,8 mln drams loss. Then goes Rosgosstrakh-Armenia Company, the leader in the insurance market of Armenia (117.5 mln drams loss). RESO Company is the third with 85.5 mln drams loss.
The leading companies in the market suffered losses as they made big insurance payments. For Q3 2013 the insurance companies collected 5.5 bln drams premiums (half as much as in Q2). Meanwhile, insurance payments were left unchanged since the previous quarter - 5 bln drams. For 9 months of 2013 insurance premiums totaled 27.8 bln drams iwt6h a 4% decline versus the indicator for the same period of 2012. Indemnities grew nearly by 50% to 14.7 bln drams as of Oct 1 2013.
According to ArmInfo's Insurance Ranking, for 9 months of 2013 net profits of insurance companies totaled 338 mln drams. The market completed the same period of 2012 with 1.1 bln drams profit. The companies are ranked in terms of net profits for 9 months nearly in the same order as in the ranking of the profit for Q3 2013. The only difference is that INGO Armenia suffered 73 mln drams net loss for 9 months of 2013.
As of 1 Oct 2013, there were 7 operating companies in the insurance market of Armenia. The companies offer 16 out of 18 insurance lines registered in Armenia. Garant Insurance Company will be closed down till the end of 2013. Relevant negotiations are currently underway with one of the operating insurance companies.