Thursday, August 1 2019 17:23
Karine Melikyan

FinRating ArmInfo: insurance premiums and indemnities in Armenia  slowed growth by July 1, 2019

FinRating ArmInfo: insurance premiums and indemnities in Armenia  slowed growth by July 1, 2019

ArmInfo.  Premiums of Armenian  insurance companies increased in the first half of 2019 by 18.7% per  annum, with an increase in indemnities of 16.5%, while a year earlier  the rates were higher - 30.6% and 30.1%, respectively.

Only in the II  quarter of 2019, premiums decreased by 42.1%, with a meager increase  in payments by 0.3%, against a decline in premiums and refunds by  43.5% and 7.3%, respectively, for the II quarter of 2018. By July 1,  2019, the total amount of insurance premiums amounted to 25.7 billion  drams, and the amount of insurance claims - 12.1 billion drams (the  figures are given from the reports of the IC according to IFRS  standards). According to the Financial Rating of Armenian Insurance  Companies prepared by ArmInfo IC, as a result, the insurance system  summed up the first half of 2019 with a net profit of 757.8 million  drams, ensuring an annual growth of 71% with a quarterly growth of  almost 4 times.

According to the reports of UK portfolios according to the standards  of the Central Bank of the Republic of Armenia, insurance premiums  amounted to 26.4 billion drams (with a slowdown in annual growth from  22.6% to 19.7%), and reimbursements - 11.9 billion drams (with a  slowdown in annual growth from 34.9% to 9.8%). On an annualized  basis, an increase in premiums and indemnities was demonstrated by 5  insurance companies, and only in the II quarter the decline in  premiums of all 6 insurance companies was accompanied by a decrease  in indemnities in 3 insurance companies.

IC "INGO Armenia" with the portfolio of 8.3 billion drams secured the  first place in the volume of collected premiums; IC "Rosgosstrakh  Armenia" held the second position - 7.4 billion drams. Nairi  Insurance IC returned to the third position - 3.6 billion drams,  displacing the Sil Insurance ICs in fourth place - 3.2 billion drams.  The fifth and sixth positions, as before, are occupied by RESO IC and  Armenia Insurance IC with premiums of 2.1 billion and 1.8 billion  drams, respectively.

In the structure of insurance fees in the first half of 2019, the  largest share fell on compulsory motor liability insurance - 40.6% or  11.3 billion drams (annual growth of 17.5%). In the second position,  medical insurance - 31.2% or 8.6 billion drams (annual growth of  11.7%). Third place was insurance of property risks (from fires and  natural disasters and other damages) - 8.4% or 2.3 billion drams  (annual growth of 64.3%). CASCO was restored to the fourth position -  4.2% or 1.2 billion drams (16.8% growth for the year), displacing  3.7% or 1.01 billion drams for the fifth accident insurance (27%  growth for the year) ) In addition, for 8 insurance classes, Armenian  insurers collected almost 2 billion drams. For the 3rd insurance  classes (water transport insurance, liability insurance 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 I half of 2018 in the  total insurance premiums the share of OSAGO was 43.5%, health  insurance - 35.2%, property risk insurance (from fires and natural  disasters and other damages) - 6.1%, CASCO - 4.5%, accident insurance  - 3.6%. In the remaining 8 classes of insurance, the fees amounted to  1.6 billion drams, with a zero indicator for 4 types (water transport  insurance, liability insurance for the use of water transport,  insurance of guarantees provided and credit risk insurance). Health  insurance and accident insurance premiums showed significant annual  growth in the first half of 2018 - respectively, 2.1 times and by  98.8%, with a significantly modest increase in property insurance  premiums (by 7.7%), by hull insurance (by 6.3%) and compulsory motor  third-party liability insurance (by 0.3%).

Recall that in the insurance market of Armenia there are 6 companies  working out of the existing 20 insurance classes of 17 each, with the  exception of railway transport insurance, liability from the use of  railway transport, insurance of legal and extrajudicial expenses.  Moreover, since 2019, in the financial reports on the portfolio of  all 6 insurance companies, at the request of the Central Bank of the  Republic of Armenia, a line of insurance of seismic risks (from  earthquakes) was added, the data for which, although separately  indicated, is not included in the results, since they are already  included in the corresponding insurance classes. In the largest  number of classes, INGO Armenia IC was licensed - 16 (the only one  operating in the water transport insurance class) and Rosgosstrakh  Armenia IC - 15, followed by Nairi Insurance IC and Armenia Insurance  IC - 12 classes each, IC "RESO" and SK "Force Insurance" - 11 classes  each. (Settlement rate dram to dollar on  06/30/19 is 477.11 others /  $ 1).

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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

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  USD

Средневзв. Цена

-

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USD

Цена откр.

482,00

Цена закр.

482,00

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482,00

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482,00

Ср/взв. Цена

482,00

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200 000

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