ArmInfo.According to the results of 9 months of 2020, the corporate component dominates in the premium portfolios of Armenian insurers - 50.9% (AMD 17.2 billion), while the retail component accounts for 49.1% (AMD 16.6 billion), against 49.7% and 50, 3% respectively a year earlier.
According to the Financial Rating of Insurance Companies of Armenia, prepared by ArmInfo IC, the retail insurance market capacity dropped by 9.7% from 21.2% growth a year earlier, along with which the dynamics of corporate insurance worsened - from 18.1% growth to 5% decline.
As of 9 months of 2020, corporate insurance prevails in the premium portfolios of two companies - Ingo Armenia and Sil Insurance, while the remaining four, on the contrary, are dominated by retail. The largest gap between corporate and retail insurance was recorded by INGO Armenia IC - 69% against retail 31%, and the smallest gap was recorded by Sil Insurance IC - 57.5% versus 42.5% of retail. In terms of the dominance of the retail component, the largest gap was observed by IC RESO - 67.6% versus corporate 32.4%, and the smallest gap, and almost the same, was recorded by IC Nairi Insurance (54.3% / 45.7% ) and Rosgosstrakh Armenia (54.4% / 45.6%). A year earlier, for 9 months of 2019, INGO Armenia (60.8%) also distinguished itself as the largest dominant of the corporate portfolio in premiums, while Armenia Insurance was the leader in terms of the retail component in premiums (64.7%).
In the structure of insurance claims, payments to retail clients accounted for 67.8% or 11.6 billion drams, corporate - 32.2% or 5.5 billion drams, against almost similar 67.9% and 32.1% respectively a year earlier. At the same time, the deterioration of the y-o-y dynamics was observed both for compensations to legal entities - from 7% growth to 5.3% decline, and for payments to individuals - from 11% growth to 5.9% decline. The only insurance company, which, according to the results of 9 months of 2020, had the corporate component dominated in the portfolio of compensations, was INGO Armenia - 54.3% against retail 45.7%. Of the other five companies, Rosgosstrakh Armenia IC had the largest dominant retail component - 92.2% against corporate 7.8%, and the smallest Sil Insurance IC - 53.4% against corporate 46.6%. A year earlier, in the same period, all six insurance companies in the portfolio of compensations had the retail component as dominated, with the largest disparity recorded by Rosgosstrakh Armenia - 91.6% versus 8.4% corporate, and the smallest by INGO Armenia - 50.8% versus corporate 49.2%.
In the structure of premiums transferred for reinsurance, the share of corporate insurance at the end of 9 months of 2020 amounted to 86.6% or 3.8 billion drams (with a reversal of the annual dynamics from 64% growth to 24.9% decline), and retail - 13.4% or 590.9 million drams (with an acceleration of y-o-y growth from 27% to 36.4%), against 92.2% and 7.8% respectively a year earlier. The largest dominant of the corporate component in premiums listed for reinsurance was recorded by Armenia Insurance IC - 97% versus retail 3%, and the smallest by Sil Insurance IC - 81.4% versus retail 18.6%. A year earlier, the largest gap was also shown by the insurance company "Armenia Insurance" (96.2% / 3.8%), and the smallest also had the insurance company "Sil Insurance" - 80.2% against retail 19.8%. Armenian insurers signed 364,429 contracts in the third quarter of 2020, which is 24.9% less than the number of contracts a year ago (against 35.8% growth a year earlier). Thus, the number of insurance contracts in force on October 1, 2020 amounted to 947 463 with a y-o-y decline of 7% (against 21.6% growth a year earlier). Among the classes, the leading position in terms of the number of concluded agreements is held by CTPML - than 240.7 thousand in Q3, the number of valid agreements under which, as of October 1, exceeded 532.2 thousand. Of the voluntary types of insurance, the most popular is accident insurance, under which in the third quarter, 84.8 thousand contracts were concluded, and the number of contracts in force by October 1 exceeded 234.3 thousand. Then comes medical insurance, according to which the number of contracts in force by October 1 is 65.6 thousand, of which only 2,1 thousand were concluded in the third quarter. In terms of the number of agreements valid by October 1 in the CTPML segment, Rosgosstrakh Armenia is the leader - 175.8 thousand (of which 79.1 thousand were concluded in the third quarter), and the same company dominates in terms of the number of agreements in force in the medical insurance segment - 37.1 thousand (of which 1.1 thousand were concluded in the third quarter). INGO Armenia is in the lead in insurance against accidents (88.3 thousand operating as of October 1, of which 50.1 thousand were concluded in the third quarter), holding the lead in property insurance (29.9 thousand in force as of October 1, of which 7.3 thousand were concluded in Q3). In terms of full comprehensive insurance, the championship is held by "Nairi Insurance" (almost 5 thousand agreements in force on October 1, of which 1.4 thousand were concluded in the third quarter). IC "Rosgosstrakh Armenia" is the leader in insurance of those traveling abroad, which by October 1 has more than 2.4 thousand valid contracts, of which 428 were concluded in the III quarter, and a little less contracts for this class with IC "INGO Armenia" (over 2 thousand operating by October 1, of which 770 were concluded in the III quarter). In terms of the new class - agricultural insurance - the leadership was kept by INGO Armenia IC in terms of the number of contracts in force- 378 as of October 1, and in the third quarter no contracts for this type were concluded.
In terms of the number of contracts concluded in the third quarter, Rosgosstrakh Armenia IC holds the first position - 106.2 thousand, the second - INGO Armenia IC - 95.8 thousand, the third - Nairi Insurance IC - 56.1 thousand, the fourth - IC "RESO" - 46.7 thousand, the fifth - IC "Armenia Insurance" - 31.4 thousand, the sixth IC "Sil Insurance" - 28.2 thousand. For all six companies, the dominant in the concluded contracts falls on CTPML with a maximum by Armenia Insurance (89.2%) and a minimum by INGO Armenia (35.9%). The largest decline in the number of contracts concluded for the quarter was recorded for travel insurance (by 94%), and the most significant reduction in the number of contracts in force on October 1 (by 59.9%) appears in this class. The decline in both the contracts concluded during the quarter and the contracts valid as of the reporting date was also recorded in the insurance of cargo transportation - by 23.7% and 27.1%, respectively. A noticeable decline in contracts concluded for the quarter is also seen in aviation insurance (by 60%) and general liability insurance (by 52.5%). The same decline (by 25.1%) was recorded for medical insurance and CTPML contracts concluded for the quarter.
To recall, insurance on 17 classes out of 20 is applied in Armenia, with the exception of insurance of railway transport, liability from the use of railway transport, insurance of judicial and extrajudicial expenses. Since 2019, in the financial reports on the portfolio, at the request of the Central Bank of Armenia, a line has been added to insurance of seismic risks (against earthquakes), and since the second quarter of 2020, a line has been added to insurance of agricultural risks (agricultural insurance), data on which are not taken into account in the totals, since they are already included in the corresponding classes of insurance. In terms of the largest number of classes, IC "INGO Armenia" is licensed - 16 (the only one operating in the class of water transport insurance) and IC "Rosgosstrakh Armenia" - 15. (Estimated exchange rate of AMD to USD as of September 30, 2020 is 488.41 AMD / $ 1).
