ArmInfo. The premiums of Armenian insurance companies increased by 17.6% per annum in the first quarter of 2019, with a rise in refunds of 11.9%, while the year before the rates were higher - 47.9% and 26% respectively. In the first quarter of 2019 alone, premiums increased by 59.8%, with a drop in payments of 6.8%, against premium growth of 36.1% and a fall in refunds of 22.2% in the first quarter of 2018. By April 1, 2019, the cumulative amount of insurance premiums was 16.3 billion drams, and the amount of insurance claims was 6.1 billion drams (figures are from IC reports on IFRS standards).
According to the financial rating of insurance companies of Armenia, prepared by the ArmInfo IC, as a result, the insurance system summed up the first quarter of 2019 with a net profit of100.7 million drams with a quarterly growth of 2.6 times, with an annual growth of 39.9%. According to the reports of IC portfolios according to the standards of the Central Bank of Armenia, insurance premiums amounted to 16.5 billion drams (with a slowdown in annual growth from 47.6% to 17.4%), and reimbursements - 5.96 billion drams (with a slowdown in annual growth from 36.9% to 4.3%). An annualized increase in premiums was demonstrated by 5 insurance companies and payments - 4 SK, while in the first quarter alone, an increase in premiums for 5 companies was accompanied by a decline in refunds from so many insurance companies.IC "INGO Armenia" with a portfolio of 5.4 billion drams secured the first place in terms of collected premiums, Rosgosstrakh Armenia IC remained in second place - 4.7 billion drams. TOP- 3 now closes IC "Sil Insurance" - 2.2 billion drams, pushing IC "Nairi Insurance" into fourth place - 2.03 billion drams.
The fifth and sixth positions, as before, are occupied by IC "RESO" and IC "Armenia Insurance" with premiums respectively 1.2 billion drams and 978.2 million drams.In the structure of insurance fees in the first quarter of 2019, the largest share was accounted for by medical insurance - 40.71% or 6.7 billion drams (annual growth of 6.5%). Prior to this, the traditionally leading OSAGO shifted to the second position - 35.15% or 5.8 billion drams (annual growth of 7.7%). Insurance of property risks, in particular against fires and natural disasters, was in third place in terms of share in insurance premiums - 8.62% or 1.4 billion drams (an annual growth of 3.3 times). Accident insurance remained at the fourth position - 3.88% or 640 million drams (a 26.8% increase over the year).
CASCO came down to fifth position in insurance premiums - 3.67% or605.3 million drams (a 12.1% increase over the year). In addition, Armenian insurers collected 1.3 billion drams for 9 insurance classes. For the 3rd insurance classes (water transport insurance, insurance of liability for the use of water transport and insurance of guarantees provided), Armenian insurers did not conclude a single contract during the reporting period.As a comparison, we note that in the first quarter of 2018, in the total insurance premiums, the share of OSAGO was 38.3%, health insurance - 44.87%, property insurance against fire and natural disasters - 3.11%, CASCO - 3.84%, accident insurance - 3.59%. For the remaining 8 classes of insurance, fees amounted to 885.6 million drams, with a zero indicator for 4 types (water transport insurance, water transport liability insurance, insurance guarantees and credit risks insurance).
In the first quarter of 2018, premiums for medical insurance, accident insurance, and CASCO showed annual growth of 2.9 times, 94.9% and 21.9%, respectively, and for insurance and property insurance against fire decreased by 2.1% and 10.2% respectively.Recall that in the insurance market of Armenia there are 6 companies that, out of the existing 20 classes of insurance, work in accordance with 18, with the exception of railway transport insurance and insurance of legal and extrajudicial expenses. Moreover, since 2019, seismic risk insurance (against earthquakes) has been involved, for which all 6 insurance companies are licensed.
Leader in the number of classes involved IC "INGO Armenia" - 17, followed by IC "Rosgosstrakh Armenia" -16. Moreover, INGO Armenia is the only insurance company operating according to the classes of insurance of water transport and liability for its use, and Rosgosstrakh Armenia and Armenia Insurance are the only ones for insuring credit risks. (The estimated exchange rate of the dram to the dollar as of 03/31/19 was 484.66 dr./$ 1).