Reimbursement grows faster in premiums in Armenian insurance market

ArmInfo. The premiums of Armenian insurance companies for the third quarter of 2018 improved the dynamics with a recovery of 5.8% from the 43.5% decline (against  1.8% growth in the third quarter of 2017), with a similar picture of  refunds - from a 7.3% decline by 26.7% growth (against 11.5% growth  in the third quarter of 2017).

For 9 months, the annual growth of  insurance premiums turned out to be more modest - 25%, rather than  payments- 36.5%, while the year before, premiums on growth were  inferior to compensations - 3.3% and 26.5%, respectively. By October  1, 2018, the cumulative amount of insurance premiums was 29.9 billion  drams, while the amount of insurance claims was 16.8 billion drams  (figures are from IC reports on IFRS standards). According to the  ranking of insurance companies of Armenia, prepared by ArmInfo IC, as  a result, the insurance system summed up 9 months of 2018 with a net  profit of 387.5 billion drams, and only in the third quarter it was  in the red, which significantly worsened quarterly and annual  dynamics: in the third quarter- growth 5 times was replaced by a  decline of 2.2 times, and over the year, the decline accelerated from  56.1% to 77.4%.

According to the reports of IC portfolios according to the standards  of the Central Bank of Armenia, insurancepremiums amounted to 30.5  billion drams (with a sharp acceleration of annual growth from 3.8%  to 24.3%), and reimbursement - 16.5 billion drams (with acceleration  of annual growth from 19.3% to 37.9%). The annual decline in premiums  was recorded only for one insurance company, and only a tiny one,  while all 6 insurance companies showed significant growth in  reimbursement.

The first three positions in terms of collected premiums are  traditionally occupied by IC Rosgosstrakh Armenia, IC INGO Armenia  and IC Nairi Insurance - 9 billion, 7.4 billion and 5.8 billion  drams, respectively. Next, as before, Sil Insurance Insurance, RESO  and IC Armenia Insurance - 3.7 billion, 2.6 billion and 2.05 billion  drams respectively.

In the structure of insurance premiums, the largest share was  traditionally accounted for OSAGO - 46.97% (against 56.08% a year  earlier) or 14.3 billion drams (annual growth slowed from 4.5% to  4.1%). In the segment of medical (including voluntary) insurance  companies collected premiums of 9.1 billion drams (annual growth  accelerated sharply from 8% to 88.5%), which in total insurance  premiums amounted to 29.86% (against 19, 69% a year earlier).  Property risks, in particular, against fires and natural disasters,  accounted for 5.43% (against 5.97% a year earlier) or 1.7 billion  drams (the annual dynamics changed from 10.6% decline to 13.1% - th  growth). In the CASCO (land transport) segment, insurance companies  collected premiums of 1.5 billion drams (the annual trend emerged  from a 2.9% decline of 5.6% growth) or 4.81% of the total (vs. 5.66%  a year earlier).  In addition, according to 9 insurance classes,  Armenian insurers collected over 3.9 billion drams, of which 1.1  billion drams are accidents insurance premiums. For the 4 insurance  classes (insurance of water transport, insurance of liability for the  use of water transport, insurance of guarantees provided 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 deals with insurance of  credit risks in Armenia, only 2 companies are engaged in the aviation  insurance insurance segment - Rosgosstrakh Armenia and INGO Armenia,  and the same two companies are licensed to insure the guarantees  provided, and insurance of water transport and liability for its use  is licensed only by INGO Armenia.

Recall that in the insurance market of Armenia there are 6 companies  that, out of the existing 19 classes, work on 17 classes of  insurance, with the exception of railway transport insurance and  legal and extrajudicial expenses insurance. In 16 classes, INGO  Armenia SC is licensed (the only one working by the water transport  insurance class), followed by Rosgosstrakh Armenia 15 (the only one  working on the credit risk insurance class) by the number of licensed  classes. (The estimated exchange rate of the dram to the dollar as of  September 30, 18 was 482.71 AMD / $ 1).