ArmInfo. The total net profit of Armenian insurance companies in the first half of 2018 fell by 65.1% per annum (against the decline of 51.6% a year earlier), amounting to 443.2 million drams or $ 919 thousand. According to the Ranking of Armenian insurance companies prepared by ArmInfo News Agency, the deterioration of the annual dynamics is due to higher growth rates of insurance claims, rather than premiums.
In the second quarter alone, the net profit of insurers increased 5-fold, against the backdrop of a significant decline in premiums with a meager subsidence of reimbursements.
Quarterly, one company managed to get out of the loss for a serious profit (almost 6-fold growth), three companies increased profits (by 5-50%), two companies were able to reduce the loss (by 50-35%). In the annual cut (I half-year of 2018 to the first half of the year 2017), profit loss was observed for all six insurance companies.
The first place in terms of net profit is held by Rosgosstrakh Armenia Insurance Company - 179 million drams (annual decline of 65.5%). In second place is SC "Armenia Insurance" with a profit of 146 million drams, (annual decline of 36.7%). TOP-3 closes IC "INGO Armenia" - 136.6 million drams (annual decline of 45.2%). Then, SC "Nairi Insurance" with a profit of 126.8 million drams (annual decline of 58.7%). The list is closed with negative indicators of RESO SC - 26.8 mln drams (annual decline by 32.4%) and Insurance Company Sil Insurance - 118.3 mln drams (annual decline 35 times), the latter having lost profit.
The total volume of insurance premiums for the first half of 2018, according to the reports of the Central Bank on standards of the Central Bank, exceeded 22 billion drams ($ 45.6 million), and insurance indemnities - 10.8 billion drams ($ 22.4 million). On an annual basis, insurance premiums increased by 29.6%, while the increase in compensation was only 34.9%. As a result, the total profit on the insurance line increased 31% year-on-year (against the decline of 12.1% a year earlier), amounting to 11.2 billion drams ($ 23.3 million). The first three positions on insurance profit in the first half of 2018 retained Rosgosstrakh Armenia - 3.4 billion drams (an annual growth of 51.8%), INGO Armenia - 2.8 billion drams (an annual growth of 14.9%) and "Nairi Insurance" - 2.3 billion drams (annual growth of 43.6%). The largest annual growth in insurance profit was provided by Insurance Armenia Insurance - 60.1%, which registered an equally high growth in premiums and reimbursements, while the only decline for RESO was 2.9% due to a significant increase in compensation scanty climbing premiums.
To note, there are 6 companies operating in the Armenian insurance market, out of which there are 17 insurance classes, except for railway transport insurance and insurance of judicial and extrajudicial expenses. For 16 classes, INGO Armenia Insurance Company (the only one operating in the water transport insurance category) was licensed, Rosgosstrakh Armenia Insurance Company was licensed for 15 classes (the only one operating in the credit risk insurance class) (the calculated exchange rate of the dram to the dollar as of 30.06.18 was 482.24 dr / $ 1).
