ArmInfo.According to the results of the first half of 2020, the corporate component dominates in the premium portfolios of Armenian insurers - 56.2% (13.7 billion drams), while the retail component accounts for 43.8% (10.6 billion drams), against 55.9% and 44, 1% respectively a year earlier.
According to the Financial Rating of Insurance Companies in Armenia, prepared by ArmInfo IC, the retail insurance market volume declined by 8.5% from 18.1% growth a year earlier, along with which the dynamics of corporate insurance worsened - from 21% growth to 7.4% decline.
At the end of the first half of 2020, corporate insurance prevails in the premium portfolios of three companies, in two, on the contrary, retail dominates, and only in one - Nairi Insurance - the share of corporate and retail clients in the premium portfolio had equal share (50% / 50%). The largest gap between corporate and retail insurance was recorded in INGO Armenia IC - 73.9% against retail 26.1%, and the smallest gap in Rosgosstrakh Armenia IC - 50.9% versus 49.1% in retail. And in terms of the dominance of the retail component, the largest gap was shown by IC RESO - 65.2% against corporate 34.8%. A year earlier, in the first half of 2019, INGO Armenia registered the largest dominant of the corporate portfolio in premiums (65.6%), and RESO (62.7%) was again the leader in terms of the retail component in premiums.
In the structure of insurance indemnities, payments to retail clients accounted for 68.2% or 7.7 billion drams, corporate - 31.8% or 3.6 billion drams, against 68.5% and 31.5%, respectively, a year earlier. At the same time, the deterioration of the annual dynamics was observed both for compensations to legal entities - from 2% growth to 3.9% decline, and for payments to individuals - from 14% growth to 5.1% decline. The only insurance company, in which the corporate component dominated in the portfolio of compensations in the first half of 2020, was INGO Armenia - 53.1% against retail 46.9%. And of the other five companies, IC Rosgosstrakh Armenia had the largest dominant of retail component - 93.9% against corporate 6.1%, and IC Sil Insurance had the smallest retail component- 55.1% against corporate 44.9%. A year earlier, in the same period, the retail component dominated in all six insurance companies in the portfolio of compensations, with the largest disproportion in Rosgosstrakh Armenia - 90.8% versus corporate 9.2%, and the smallest in INGO Armenia - 51.3% versus corporate 48.7%.
In the structure of premiums transferred for reinsurance, the share of corporate insurance in the first half of 2020 amounted to 86.8% or 2.7 billion drams (with a reversal of the y-o-y dynamics from 82% growth to 28.4% decline), and retail - 13.2% or 410.9 million drams (with an acceleration of y-o-y growth from 37% to 51%), against 93.2% and 6.8% respectively a year earlier. The largest dominant of the corporate component in the premiums listed for reinsurance was recorded in Armenia Insurance IC - 97.7% against retail 2.3%, and the smallest in RESO IC - 74.6% against retail 25.4%. A year earlier, the largest gap was also shown by the insurance company "Armenia Insurance" (97% / 3%), and the smallest one was at the insurance company "Sil Insurance" - 77.6% against retail 22.4%.
In the second quarter of 2020, Armenian insurers concluded 315 680 contracts, which is 24.4% less than the number of contracts a year ago (against 40.8% growth a year earlier). Thus, the number of insurance contracts in force as of July 1, 2020 amounted to 946,028 with a y-o-y decline of 4.4% (against 24.5% growth a year earlier). Among the classes, the leading position in terms of the number of concluded contracts is held by CTPML - in the second quarter, more than 212.4 thousand, the number of existing agreements under which exceeded 519.7 thousand as of July 1. Of the voluntary types of insurance, the most demanded is insurance against accidents, under which 69.4 thousand contracts were concluded in the Q2, and the number of those in force by July 1 exceeded 239.2 thousand. Then comes medical insurance, according to which the number of agreements in force by July 1 is 66.8 thousand, of which only 3, 5 thousand were concluded in the second quarter. In terms of the number of agreements valid by July 1 in the CTPML segment, Rosgosstrakh Armenia is the leader - 169.3 thousand (of which 69.6 thousand were concluded in the Q2), and the same company dominates in terms of the number of existing agreements in the medical insurance segment - 37.4 thousand (of which 1.4 thousand were concluded in Q2). INGO Armenia is the leader in insurance against accidents (90.6 thousand operating as of July 1, of which 46.5 thousand were concluded in Q2). The company also retained the leadership in property insurance of which 7.8 thousand were concluded in Q2. In terms of fully comprehensive insurance, the leadership is held by "Nairi Insurance" (over 5 thousand agreements in force on July 1). IC "Rosgosstrakh Armenia" is the leader in insurance of those traveling abroad, which by July 1 has more than 3.7 thousand contracts in force, of which 758 were concluded in Q2, and a little less contracts for this class had IC "INGO Armenia" (over 3.2 thousand operating by July 1, of which 733 were concluded in Q2). In terms of a new class - agricultural insurance - INGO Armenia is the leader in terms of the number of contracts in force as of July 1 (691) and those concluded in the Q2 (693).
In terms of the number of contracts concluded in the Q2, the first position is occupied by IC "Rosgosstrakh Armenia" - 89.5 thousand, the second - IC "INGO Armenia" - 86.2 thousand, the third - IC "Nairi Insurance" - 46.1 thousand, the fourth - IC "RESO" - 37.8 thousand, the fifth - IC "Sil Insurance" - 28.9 thousand, the sixth - Armenia Insurance - 27.2 thousand. In all the six companies CTPML agreements dominated among the contracts-with maximum by Armenia Insurance (91%) and the minimum INGO Armenia (33%).
The largest decline in the number of contracts concluded during the quarter was recorded for travel insurance (by 87.7%), and in terms of the number of contracts in force on July 1, the insurance of cargo transportation demonstrated the most significant decline (by 33.5%), followed by travel insurance (by 29%).
To recall, 6 companies operate in the insurance market of Armenia, operating 17out of the available 20 classes, with the exception of insurance of railway transport, liability from the use of railway transport, insurance of judicial and extrajudicial expenses. Moreover, since 2019, at the request of the Central Bank of Armenia, the line of insurance of seismic risks (against earthquakes) has been added to the financial reports on the portfolio of all 6 insurance companies, the data on which are not taken into account in the totals, since they are already included in the corresponding classes of insurance. And since the second quarter of 2020, a line has been added to the portfolio of financial reports - insurance of agricultural risks (agricultural insurance), data on which are also included in two other classes of insurance: property against fires and natural disasters; property from other damages. In terms of the largest number of classes, INGO Armenia IC is licensed - 16 (the only one operating in the water transport insurance class) and Rosgosstrakh Armenia IC - 15. (The estimated AMD / USD exchange rate as of June 30, 2020 is 482.36 AMD / $ 1).