ArmInfo. The total net profit of Armenian insurance companies for 9 months of 2017 fell by 56.1% per annum (against growth of 62.7% a year earlier), amounting to 1.7 billion AMD or $ 3.6 million. According to the Ranking of insurance companies of Armenia prepared by NA ArmInfo, the deterioration of the annual dynamics was caused by a sharp acceleration of the upward trend of insurance compensation from 4.8% to 19.3% with a low growth rate of insurance premiums - 3.8% against 0.3% a year earlier. In the annual context (9 months of 2017 to the same period in 2016), profit loss was observed in five insurance companies, three of which reduced the positive indicator by 40-64%, and two moved from profit to loss (Seal Ishurans and RESO), and only one the company (Armenia-Insurance) managed to increase profits by 15.3%.
Only for the III quarter net profit of insurers fell by 41.1% (against 3% decline a year earlier), which is due to the emergence of the dynamics of the volume of compensation from the 10.2% decline to 11.5% growth, with a more modest improvement of the trend of premiums - from 22.8% decline to 1.8% growth. And, quarterly, the three companies significantly reduced profit (by 26-61%), two in general lost their money, and only one managed to increase this figure by 39.1% (IC "Armenia Insurance").
Rosgosstrakh Armenia Insurance Company is the first in terms of net profit for 9 months - 753.6 million AMD (annual decline by 56.4%). In second place is SC Nairi Insurance with a profit of 386.5 million (annual decline of 40.8%). The third is Armenia Insurance with a profit of 347.6 million (annual growth of 15.3%), the fourth - INGO Armenia - 308.7 million (annual decline of 63.6%). The list is closed with a minus indicator of "Sil Insurance" and "RESO" - 32.7 million and 52 million AMD, respectively, both having moved from profit to loss (the annual decline in 2,2-2,4 times).
The total volume of insurance premiums for the first 9 months of 2017, according to the reports of the IC under the IFRS standards, amounted to 23.9 billion AMD ($ 50 million), and insurance indemnities - 12.4 billion ($ 26 million). Only for the III quarter insurance premiums amounted to 7.4 billion, and reimbursements - 4.3 billion. As a result, the total profit on the insurance line fell by 13.9% to 11.5 billion AMD ($ 24 million), showing a quarterly decline of 9.3% to 3.1 bln, while the previous year the growing dynamics was in positive territory - 2.8%, and the quarterly in the more significant plus - 11%. The highest profit on the insurance line was registered for 9 months of 2017 at INGO Armenia - 3.2 billion (annual decline of 2.8%, quarterly decline of 22.2%), Rosgosstrakh Armenia occupies the second position - 3.1 billion (annual decline of 16.4%, quarterly growth of 31.3%), the third position is held by Nairi Insurance - 2bln AMD (annual decline of 25.7%, quarterly decline of 51.5%). The fourth, fifth and sixth positions continue to be occupied by "RESO", "Sil Insurance" and "Armenia Insurance" - 1.24 billion, 1.2 billion and 747.5 million, respectively, and these three companies quartered this growth (3.5- 45.8%), but the annual growth in the growing volume was achieved only by RESO (by 0.8%).
There are 6 companies operating in the Armenian insurance market, 17 out of 19 insurance classes are present, except for railway transport insurance and insurance of judicial and extrajudicial expenses.