Wednesday, August 8 2018 19:01

ArmInfo.In the first half of 2018 as compared with the same period of 2017 Armenia's insurance companies registered a 30,6% growth in premiums amid 30,1% growth in  compensation. A year earlier premiums demonstrated only 4,7% growth  amid 30,5% growth of compensaitons. In Q2 alone, the dynamics of  premiums deteriorated to 43,5% decline versus 36,1% growth in Q1 amid  sharp slackening of compensations decline to 7,3% from 22,2% in Q1,  amid 22,8% decline and 10,2% decline in Q2 2017 respectively.  

As a result, by July 1 2018 the total amount of insurance premiums  made 21,6 bln AMD and insurance compensations-10,4 bln AMD (the  figures are presented from the reports of the insurance companies by  IFRS standards) According to ArmInfo's Ranking of Insurance Companies  of Armenia, prepared by ArmInfo as a result insurance companies  recorded a 443,2 mln AMD net profit in H1 2018 ensuring 5-fold  quarterly growth amid y-o-y decline by 65,1%.  According to reports  of insurance companies portfolios on CBA standards, insurance  premiums totaled 22 billion drams (y-o-y growth by 22.6%), and  compensation - 10.8 billion drams (y-o-y growth by 34.9%). In  year-over-year terms, all insurance companies demonstrated growth in  premiums and compensations, and in Q2 alone all the six insurance  companies recorded a decline in premiums, as well as in  reimbursements, with the exception of one company with an  insignificant growth.  Rosgosstrakh Armenia Insurance Company held  the first place in the volume of collected premiums with a portfolio  of 6.3 billion drams, INGO Armenia fell to the second place- 5.4  billion drams. "Nairi Insurance" maintained the third position in the  TOP-3- 4.3 billion drams. "Sil Insurance" - 2.8 billion drams, RESO  Insurance Company - 1.8 billion drams and "Armenia Insurance"- 1.5  billion drams rank next. 

In the structure of insurance premiums, MTPL holds the major share-  43.5% or 9.6 billion drams (year- over-year growth by 0.3%). Medical  insurance holds the second place - 35.2% or 7.7 billion drams (y-o-y  growth 2.1-fold). The property insurance holds the third position by  its share in insurance premiums - 6.1% or 1.4 billion drams (y-o-y  growth by 16.7%). CASCO holds the fourth position - - 4.5% or 984.3  million drams (growth over year by 6.3%). Accident insurance is in  the fifth position - -3.6% or 795.8 million drams (an increase of  98.8% over the year). In addition,  Armenian insurers collected 1.6  billion drams in 7 insurance classes. In four insurance classes  (insurance of water transport, liability insurance from use of water  transport, insurance of provided guarantees and insurance of credit  risks), Armenian insurers did not conclude a single contract during  the reported period.

To note for comparison that in the first half of 2017, in the total  insurance premiums, the share of MTPL was 56.2%, medical insurance -  21.5%, property insurance - 7.4%, CASCO - 5.5%, accident insurance -  2.4%. For the remaining 7 classes of insurance, the charges amounted  to 1.2 bln drams, with zero profit for 4 types of insurance (water  transport insurance, liability insurance from using water transport,  insurance of provided guarantees and insurance of credit risks).  The  premiums for MTPL insurance, health insurance and accident insurance  showed a year-over-year growth in the first half of 2017 - by 1.4%,  18.2% and 54.6% respectively, and property insurance and CASCO  insurance premiums decreased by 7.7% and 0.01% respectively.

To note, as of today 17 from the available 19 insurance classes are  provided in Armenia, except for railway transport, judicial and  extrajudicial expenses insurance. INGO Armenia (16) and Rosgosstrakh  Armenia (15) are the leaders by insurance classes. Moreover,  "Rosgosstrakh Armenia" is the only one on the insurance market  licensed for insurance of credit risks, and "INGO Armenia" Insurance  Company is the only one for insurance of water transport and  liability from its use. (The calculated exchange rate of AMD as of  June 30 2018 was 482.24 dr / $).