ArmInfo. Retail insurance accounted for 54% (5.2bln drams) of total premiums of the Armenian insurance companies for Q1 2016. Corporate insurance accounted for 46% (4.4bln drams) of total. Retail insurance market capacity fell from 19.7% to 25%, as corporate insurance increased from 12.9% to 27.8%. Before introduction of MTPL insurance and compulsory medial insurance of the staffs of the state-run enterprises in Armenia, the share of corporate insurance was prevailing over the retail one significantly.
Retial insurance prevails in the portfolios of most of the insurance companies, except INGO Armenia and Sil Insurance where corporate insurance prevails over the retail one. The highest disproportion of the retail and corporate insurance was at RESO Insurance Company - 81.3% and 18.7%. Retain insurance of Armenia Insurance Company is 68.1% of total. This indicator of Nairi Insurance Company is 54.3%, Rosgosstrakh Armwnia Insurance Company - 53.1%, INGO Armenia Insurance Company - 47.9%, and Sil Insurance Company - 44.7%.
Indemnities paid to the retail and corporate customers accounted for 65.9% or 2.4bln drams and 44.1% or 1.3bln drams of total indemnities, respectively. Decline of indemnities of legal entities made up 35% versus 61% year-on-year decline a year ago. Indemnities to privates fell 32% y-o-y versus 30% y-o-y decline a year ago. The reinsurance premiums for corporate sector totaled 92.9% or 689.3mln drams (19% y-o-y growth), those for the retail sector made up 7.1% or 52.9mln drams (29% decline y-o-y). (The exchange rate for March 31 2016 totaled 480.79AMD/1USD).
The Armenian Insurance Companies made 285,422 contracts in Q1 2016, which was by 9.4% more than a year ago. The active contracts totaled 636,398 as of April 1 2016 (a 7.8% y-o-y growth). MTPL contracts numbered 217,400 for Q1 2016, with the active contracts totaling 419,600 on April 1. As for the voluntary insurance lines, the biggest number of contacts was made for accident insurance - 28,600 (108.8 active contracts on April 1). Rosgosstrakh-Armenia Insurance Company was the leader by the number of MTPL contracts (128,600 as of April 1, of which 67,000 were made in Q1). RESO was the leader by the number of acident insurance contracts (75,040 active contracts as of April 1, of which 20,200 were made in Q1).
To note, Armenian insurance companies provide 17 out of 19 insurance lines registered in Armenia. INGO Armenia is the only company to provide 16 insurance lines (the only company that provides water transport insurance). Rosgosstrakh Armenia provides 15 insurance lines (the only company that provides insurance against credit risks). Another 3 companies provide by 11 insurance lines - Sil Insurance, Armenia Insurance and RESO. Nairi Insurance provides 10 insurance lines.