ArmInfo. Premiums of Armenian insurance companies increased over the 9 months of 2019 by 18.6% per annum, with an increase in indemnities of 25.5%, against an increase of 25% and 36.5%, respectively, a year earlier.
For the III quarter of 2019 alone, premiums outperformed the 42.1% decline by 4% growth, with a sharp acceleration in the growth of payments from 0.3% to 46.4%, while a year earlier in the III quarter both premiums and refunds showed a way out of recession by 5.8% and 26.7% growth, respectively. By October 1, 2019, the total amount of insurance premiums amounted to 35.5 billion drams, and the amount of insurance claims - 21.03 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 Investment Company, as a result, the insurance system totaled 9 months of 2019 with a net profit of over 1.1 billion drams, ensuring an annual growth of 3 times with a quarterly decline of 34%.
According to the reports of UK portfolios according to the standards of the Central Bank of the Republic of Armenia, insurance premiums amounted to 36.5 billion drams (with a slowdown in annual growth from 24.3% to 19.7%), and reimbursements - 18.2 billion drams (with a sharp slowdown in annual growth from 37.9% up to 9.9%). In annual terms, an increase in premiums and indemnities was shown by 5 insurance companies, and only in the 3rd quarter, an increase in premiums in 4 insurance companies was accompanied by an increase in indemnities in all 6 insurance companies.
The leader in terms of collected premiums is INGO Armenia IC with a portfolio of 11.04 billion drams, the second position continues to be occupied by IC Rosgosstrakh Armenia - 10.2 billion drams. Nairi Insurance IC secured the third position - 5.2 billion drams, the Sil Insurance IC fourth position - 4.2 billion drams. The fifth and sixth positions, as before, are occupied by RESO IC and Armenia Insurance IC with premiums of 3.3 billion and 2.6 billion drams, respectively.
In January-September 2019, the largest share in the structure of insurance fees fell to compulsory motor liability insurance - 47.3% or 17.3 billion drams (annual growth of 20.5%). In second place is health insurance - 27.4% or 9.99 billion drams (annual growth of 9.7%). Third place was insurance of property risks (from fires and natural disasters and other damages) - 8.3% or 3.05 billion drams (annual growth of 47.6%). The fourth position was assigned to CASCO - 4.9% or 1.8 billion drams (an increase of 22.1% over the year), the fifth is insurance against accidents - 3.8% or 1.4 billion drams (an increase of 32, 8%). In addition, for 8 insurance classes, Armenian insurers collected over 3 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 January-September 2018, the share of total insurance premiums in the total insurance premium amounted to 46.97%, medical insurance - 29.9%, property risk insurance (from fires and natural disasters and other damages) - 6.8%, hull insurance - 4.8%, accident insurance - 3.5%. For the remaining 8 insurance classes, the fees amounted to AMD 2.8 billion, with a zero indicator for 4 types (water transport insurance, liability insurance for using water transport, insurance of guarantees provided and credit risk insurance). In January-September 2018, premiums for health and accident insurance showed a significant annual increase - by 88.5% and 81.4%, respectively, with a significantly modest increase in premiums for hull insurance (by 5.6%) and compulsory motor third-party liability insurance (by 4 ,one%). 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. (Estimated AMD / USD exchange rate for 09/30/19 is 475.97 dr./$ 1).