Wednesday, August 8 2018 11:07

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).