Tuesday, February 12 2019 12:44
Karine Melikyan

Growth of premiums for 2018 has accelerated in insurance market of  Armenia, but still yields to  increase in payments

Growth of premiums for 2018 has accelerated in insurance market of  Armenia, but still yields to  increase in payments

ArmInfo. In the insurance market of Armenia, the growth of premiums for 2018 has accelerated, but so far it is inferior to the growth of payments - 17.6% against  25.3%, the same trend was observed in 2017 with more significant gap  - 5.7% against 30.4%.

By January 1, 2019, the total amount of insurance premiums was 40.1 billion drams, while the amount of insurance indemnities was 23.2 billion drams (figures are from  insurance companies reports on IFRS standards).  According to the  Financial Rating of insurance companies of Armenia, prepared by  ArmInfo, as a result, the net profit of the insurance system in 2018  accelerated the decline to 67.6% from 58% in 2017, reaching 226.3  million drams. According to the reports of IC portfolios according to  the standards of the Central Bank of Armenia, insurance premiums  amounted to 41.02 billion drams (with an acceleration of y-o-y growth  from 6.2% to 17.4%), and reimbursements - 22.8 billion drams (with an  acceleration of y-o-y growth from 24.9% to 28.4%). The decline in  fees in the reporting period was recorded only in one company (RESO),  which also had the only decrease in reimbursements.

Rosgosstrakh Armenia IC took the lead in terms of premiums collected-  11.6 billion drams. IC "INGO Armenia" with a portfolio of 10.5  billion drams was on the second place. "Nairi Insurance" closes TOP-3  - 8.3 billion drams. By the amount of the insurance portfolio next  goes Sil Insurance - 4.6 billion drams, RESO Insurance - 3.3 billion  drams and Armenia Insurance - 2.7 billion drams.

In the structure of insurance premiums, the largest share was  traditionally accounted for CMTPL - 48.8% (against 54.4% a year  earlier) or 20.02 billion drams (y-o-y growth accelerated from 4.4%  to 5.3%). In the health insurance segment (including the obligatory  component), companies collected premiums of 10.7 billion drams (y-o-y  growth jumped from 28.1% to 50.4%), which in the total volume of  insurance premiums was 26% (against 20.3% a year earlier). The share  of property risk insurance, in particular against fires and natural  disasters, was 7.3% (against 7.6% a year earlier) or 2.9 billion  drams (the y-o-y dynamics changed from a 19.8% decline to 13.3% - th  growth). In the full comprehensive insurance (land transport)  segment, insurance companies collected premiums of 2.01 billion drams  (y-o-y growth accelerated from 0.5% to 3.2%) or 4.9% in total (versus  5.6% a year earlier).

In addition, by 10 insurance classes, Armenian insurers collected 5.3  billion drams. For the 3 insurance classes (insurance of water  transport, insurance of liability for the use of water transport,  insurance of guarantees provided), Armenian insurers did not conclude  a single contract during the reporting period. It should be noted  that in 2018 Armenia Insurance also became involved in credit risks  insurance in Armenia, which had previously been practiced only by  Rosgosstrakh Armenia Insurance Company. Only 2 companies -  Rosgosstrakh Armenia and INGO Armenia - were engaged in the insurance  segment of aviation transport, and these same two companies are  licensed to insure the guarantees provided, and only INGO Armenia is  licensed to insure water transport and liability for its use.

To note, since October 1, 2017, a phased introduction of the  compulsory health insurance started in Armenia, starting from the  social package for civil servants - over 100 thousand beneficiaries,  funded by state funds. So far, the compulsory health insurance will  be limited to civil servants, and the underprivileged segments of the  population - about 612,000 people - will benefit from the compulsory  health insurance only in 2021, after the establishment of the  Universal Health Insurance Fund.  To recall, 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. By the largest number of classes, INGO Armenia - 16 (the  only one working in the water transport insurance class) and  Rosgosstrakh Armenia IC - 15 are licensed, followed by Nairi  Insurance IC and Armenia Insurance IC- on 12 classes, "RESO" and   "Sil Insurance" - on 11 classes. (The estimated exchange rate of the  dram to the dollar as of December 31, 2018  was 483.75 AMD/$ 1). 


News


Exchange rates
27.11.2020
RUB6.70-0.02
USD508.210.09
EUR605.941.12
GBP678.82-0.08
CAD391.020.46
JPY48.860.12
CNY77.290.04
CHF560.511.40



Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000