Wednesday, August 5 2020 19:22
Karine Melikyan

FinRating ArmInfo: Agreements on tourism and cargo transportation  segments have significantly declined in the insurance market

FinRating ArmInfo: Agreements on tourism and cargo transportation  segments have significantly declined in the insurance market

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). 

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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

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000