Armenian insurance market in first half of 2017, meager annual increase in premiums was accompanied by an impressive increase in payments

ArmInfo.  The premiums of Armenian  insurance companies declined by 22.8% in Q2 of 2017, with declines of  10.2%. In the first half of the year, the annual growth of insurance  premiums was much more modest - 4.7%, rather than payments - 30.5%.  By July 1, 2017, the total volume of insurance premiums was 16.6  billion drams, and the amount of insurance indemnities - 8.1 billion  drams (figures are from the reports of IC on IFRS standards).  According to the Ranking of insurance companies of Armenia prepared  by ArmInfo News Agency, as a result of this the insurance system  summed up the first half of 2017 with a net profit of 1.3 billion  drams with a quarterly growth of 44.6%, with an annual decline of  51.6%. According to reports of SC portfolios on CBA standards,  insurance premiums totaled 16.98 billion drams (an annual growth of  5.3%), and compensation - 8.02 billion drams (annual growth of  17.7%). The decline in fees during the reporting period was recorded  in 2 out of 6 companies operating in the insurance market of Armenia,  while the decline in compensation was observed in the 1 st.

The first place in the volume of collected premiums is traditionally  held by Rosgosstrakh Armenia Insurance Company with an indicator of  4.9 billion AMD. In second place is the INGO Armenia insurance  company with a portfolio of 4.5 billion AMD. TOP- 3 is closed by SC  "Nairi Insurance" - 2.9 billion AMD.  Next to them, in terms of the  size of the insurance portfolio, SC "Sil Insurance" - 2.1 billion  AMD, "RESO" Insurance Company - 1.7 billion drams and "Armenia  Insurance" Insurance Company -899.9 million AMD.

In the structure of insurance premiums, the largest share  traditionally fell on MTPL - 56.18% or 9.5 billion AMD (annual growth  of 1.4%). In the medical (including voluntary) insurance segment,  companies collected premiums of 3.6 billion AMD or 21.48% of the  total insurance premiums (annual growth of 18.2%). Insurance of  property risks, in particular from fires and natural disasters,  accounted for 6.34% of the total premiums or 1.1 billion AMD (a 6.7%  decline for the year). In the segment of CASCO (land transport),  insurance companies collected premiums for 925.6 million AMD or 5.45%  of the total premiums (a decline for the year by 0.01%).

In addition, according to 9 insurance classes, Armenian insurers  collected 1.8 billion AMD. On the 4th insurance classes (insurance of  water transport, insurance of liability from using water transport,  insurance of provided guarantees and insurance of credit risks),  Armenian insurers did not conclude a single contract during the  reporting period. It should be noted that only Rosgosstrakh Armenia  insurance company is engaged in insurance of credit risks in Armenia,  only two companies are engaged in the aviation insurance segment -  Rosgosstrakh Armenia and INGO Armenia, and the same two companies are  licensed for insurance of provided guarantees, and Insurance of water  transport and liability from its use is licensed only by "INGO  Armenia".

To compare, in the first half of 2016 insurance premiums of the 6th  SC of Armenia grew by 4.2% per annum, with the increase of  compensation by only 0.7%, which allowed the financial result to  increase by 74% with an increase in the plus level of net profit . In  the quarterly analysis (for the second quarter of 2016), premiums and  reimbursements showed a decline - by 32.6% and 7.1%, respectively,  which increased net profit insignificantly - only by 0.5%. And  Rosgosstrakh Armenia continues to lead these three indicators. In the  insurance premiums of the 6th IC, the share of MTPL was 58.31%,  medical insurance - 19.14%, property insurance against fires and  natural disasters - 7.16%, CASCO- 5.74%. For the remaining 9 classes  of insurance, the charges amounted to 1.6 bln AMD, with a zero  indicator for 4m types (water transport insurance, liability  insurance from water transport, insurance of guarantees provided and  insurance of credit risks).