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).
