Growth of premiums for 2019 accelerated in Armenia`s insurance  market, being ahead of the growth in payments

ArmInfo.In the insurance market of Armenia, the growth of premiums for 2019 accelerated, being ahead of the growth of payments - 19.1% versus 17%, while in 2018 the growth of premiums was inferior to the growth of payments - 17.6%  versus 25.3%.

In Q4, 2019 alone, premiums accelerated growth from 4%  to 25.2%, with change in the dynamics of reimbursements from 46.4%  growth by a 30.6% decline, while in Q4, 2018 both indicators  registered growth - premiums with a sharp acceleration of rates to  23.1%, and reimbursements with a significant slowdown to 2.4%. By  January 1, 2020, the total amount of insurance premiums amounted to  47.7 billion drams, and the amount of insurance claims - 27.2 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 2019 with a net profit of 1.4 billion  drams, ensuring annual growth of 7.3 times (with loss) in a quarterly  decline of 26.5 %.

According to the reports of the Insurance Companies portfolios  according to the standards of the Central Bank of the Republic of  Armenia, insurance premiums exceeded 49.1 billion drams (with  accelerated y-o-y growth from 17.4% to 19.8%), and reimbursements -  25.01 billion drams (with a slowdown in y-o-y growth from 28.4% to  9.7%). The decline in fees during the reporting period was recorded  only in one company (Nairi Insurance), which also registered the only  decline in refunds.

INGO Armenia IC took the lead in the volume of collected premiums -  14 billion drams, Rosgosstrakh Armenia IC took the second position -  13.6 billion drams. The third position is held by Nairi Insurance IC  - 7.7 billion drams, followed by the Sil Insurance - 5.4 billion  drams, RESO IC - 4.7 billion drams and Armenia Insurance - 3.7  billion drams.

In the structure of insurance premiums, the share of  Compulsory  Motor Third Party Liability  (CMTPL) continues to dominate - 49.5%  (against 48.8% in 2018) or 24.3 billion drams (with y-o-y growth  accelerating to 21.4%). Medical insurance is in the second position  (including the mandatory component) - 24.2% (against 26% in 2018) or  11.9 billion drams (with a slowdown in y-o-y growth to 11.6%).  Property insurance (from fires, natural disasters, other damages) was  in third position - 9.4% (against 8.5% in 2018) or 4.6 billion drams  (with y-o-y growth accelerating to 31.4%). MOD insurance is on the  4th place-5.2% (against 4.9% in 2018) or 2.6 billion drams (with  y-o-y growth accelerating to 27.4%). In addition, for 9 insurance  classes, Armenian insurers collected 5.8 billion drams. In three  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.

To recall, 6 companies operate in the insurance market of Armenia,  working on 17 out of existing 20 insurance classes, 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. INGO Armenia IC is  licensed for the largest number of classes- 16 (the only one  operating in the class of water transport insurance) and Rosgosstrakh  Armenia IC - 15, followed by Nairi Insurance IC and Armenia Insurance  IC - 12 classes each, IC "RESO" and  "Sil Insurance" - 11 classes  each. (Estimated AMD / USD exchange rate as of Dec 31, 2019 was  479.70 AMD/$ 1).