Monday, February 11 2019 18:42

ArmInfo. The total net profit  of insurance companies of Armenia for 2018 declined by 67.6% (against  a decline of 58% in 2017), making 226.3 million drams or $ 0.5  million the growth of insurance claims from 24.9% to 28.4%, with a  moderate rise in insurance premiums - by 17.4% against 6.2% a year  earlier. On an annualized basis (2018 by 2017), a decrease in profits  was observed in five insurance companies, two of which reduced the  positive indicator by 6.5-54%, and three were at a loss, and one of  them moved down from the positive level, and only Nairi Insurance has  managed to increase profits.

Quarterly, after leaving a loss on profit in the first quarter  (growth 2.5 times) and increasing the positive level in the second  quarter by 5 times, in the third quarter there was a decline of 2.2  times with a loss, with further deepening of the loss in the fourth  quarter of 2018, almost 3 times (against a decline of 2.3 times in  the fourth quarter of 2017 - from profit to loss). The quarterly  increase in loss was accompanied by a slowdown in the growth of  refunds from 26.7% in the third quarter to 2.4% in the fourth  quarter, while the upward trend of premiums accelerated from 5.8% to  23.1%.The first place in terms of net profit for 2018 was occupied by  INGO Armenia IC - 232.7 million drams (annual decline of 53.6%).

 On the second place Armenia Insurance Company advanced with a profit  of 203.3 million drams (annual decline of 6.5%). "Nairi Insurance" IC  remained on the third with a profit of 176 million drams (annual  growth of 41.5%). The fourth, fifth and sixth positions, with a minus  level, were occupied by SC "RESO", "Rosgosstrakh Armenia" and "Sil  Insurance", the total loss of which amounted to 385.7 million  drams.The total amount of insurance premiums for the year 2018,  according to the reporting of the IC according to the IFRS standards,  exceeded 40 billion drams ($ 82.9 million), and insurance claims -  23.2 billion drams ($ 48.1 million). In the fourth quarter alone,  insurance premiums amounted to 10.2 billion drams, while refunds  amounted to 6.5 billion drams. 

As a result, the total income from the insurance line increased in  2018 by 8.4% - to 16.8 billion drams ($ 34.8 million), showing a  quarterly growth of 91.5% to 3.7 billion drams, while the year before  the increasing dynamics was in recession - 13.8%, and quarterly in  modest, rather than now, plus - 5.3%. The highest profit in the  insurance line was recorded in 2018 with IC "INGO Armenia" - 4.8  billion drams (annual growth of 7.7%, with a quarterly increase of  2.4 times), the second position is occupied by Rosgosstrakh Armenia -  4.3 billion drams (annual growth by 17.3%, quarterly - by 89.7%),  Nairi Insurance held the third position - 3.8 billion drams (annual  growth by 20%, quarterly - 2.3 times). "RESO", "Sil Insurance" and  "Armenia Insurance" - 1.365 billion, 1.362 billion and 1.2 billion  drams, respectively, continue to occupy the fourth, fifth and sixth  positions, respectively, of which only Armenia Insurance managed to  ensure quarterly and annual growth ( by 91.7% and 6.2%,  respectively).It should be noted that in the insurance market of  Armenia there are 6 companies that, out of the 19 classes of  insurance available, operate on 17, with the exception of railway  transport insurance and legal and extrajudicial expenses insurance.  IC "INGO Armenia" (the only one working in the water transport  insurance class) is licensed in 16 classes, IC "Rosgosstrakh Armenia"  (the only one working in the credit risk insurance class) is licensed  in 15 classes. (the estimated exchange rate of the dram to the dollar  as of December 31, 18 was 483.75 dr./$ 1).