Monday, August 16 2021 17:18

ArmInfo.In the premium portfolios of Armenian insurers in the first half of 2021, the  corporate component continues to prevail over the retail one - 57%  (15.1 billion drams) and 43% (11.4 billion drams), almost repeating  the indicators of a year ago - 56.2% and 43.8% respectively.  According to the Financial Rating of Insurance Companies of Armenia,  prepared by ArmInfo IC, the annual dynamics of the absolute values of  both indicators changed from the 7.4-8.5% decline by 10.9-7.6%  growth.

At the end of the first half of 2021, corporate insurance prevails in  the premium portfolios of four companies, while the remaining two  (retail dominates in IC RESO and Nairi Insurance). The largest gap  between corporate and retail insurance remains in INGO Armenia IC -  68.2% against retail 31.8%, while Rosgosstrakh Armenia has the  smallest gap - 55.1% versus 44.9% for retail. And of the two  insurance companies, which have a dominant retail component, IC RESO  differs by a large gap - 63.9% versus corporate 36.1%, and IC Nairi  Insurance is smaller - 51.5% versus corporate 48.5%. A year earlier,  in the first half of 2020, INGO Armenia also distinguished itself as  the largest dominant of the corporate portfolio in premiums (73.9%),  and the only one with a dominant retail component was again IC RESO  (65.2%).  In the structure of insurance claims in the first half of  2021, payments to retail customers accounted for 63.7% or 8.7 billion  drams, corporate - 36.3% or 4.9 billion drams, against 68.2% and  31.8%, respectively, a year earlier. The annual trend of refunds, as  in the case of premiums, turned from recession to growth, with the  corporate component reaching a significant 37%, while the retail  component showed a moderate 12%. During the reporting period, in the  portfolio of compensations, only INGO Armenia was distinguished by  the dominant on the corporate component - 56.5%, and of the remaining  five, with the dominant on the retail one, IC Rosgosstrakh Armenia  kept the maximum level - 86.3%, which repeated last year's situation  - only "INGO Armenia" recorded the corporate dominant (53.1%) and the  maximum retail dominant was again in Rosgosstrakh Armenia (93.9%).

In the structure of premiums listed for reinsurance, the share of  corporate insurance in the first half of 2021 amounted to 80.6% or  3.4 billion drams (with a reversal of the annual dynamics from 28.4%  decline to 27% growth), and retail - 19.4% or 823.7 million drams  (with an acceleration of annual growth from 50.9% to 2-fold), against  86.8% and 13.2%, respectively, a year earlier. The largest dominant  of the corporate component in premiums listed for reinsurance was  recorded in Rosgosstrakh Armenia IC - 94.5% against retail 5.5%, and  the smallest in Sil Insurance - 70.4% versus retail 29.6%. A year  earlier, the largest gap between the corporate component and the  retail one was marked by "Armenia Insurance" IC - 97.7% versus 2.3%,  and the smallest - IC "RESO" - 74.6% versus 25.4%.  In the second  quarter of 2021, Armenian insurers concluded 346 392 contracts, which  is 9.7% more than the number of contracts a year ago (against a 24.4%  decline a year earlier). Thus, the number of insurance contracts in  force on July 1, 2021 amounted to 910,177 with a slowdown in the  annual decline to 3.8% (from 4.4% a year earlier). Among the classes,  the leading position in terms of the number of concluded agreements  is held by CTPML - in the second quarter, more than 226.2 thousand,  the number of existing agreements under which exceeded 507.3 thousand  by July 1. Of the voluntary types of insurance, the most demanded is  accident insurance, according to which 69.9 thousand contracts were  concluded in the second quarter, and the number of agreements in  force by July 1 exceeded 218.5 thousand. And the next position in  terms of demand, judging by the number of contracts in force on July  1, is held by medical insurance - 66.6 thousand, but by the number of  contracts concluded in the second quarter of contracts, property  insurance now occupies the third position (against fires, natural  disasters and other damage) - 17,3 thousand, the number of agreements  in force on July 1, under which exceeded 59.5 thousand.

In terms of the number of agreements in force by July 1 in the CMTPL  segment, Rosgosstrakh Armenia is the leader - 153.3 thousand (of  which 65.7 thousand were concluded in the second quarter). The leader  in terms of the number of contracts in the segments of accident  insurance and property insurance is INGO Armenia - respectively,  there are 92 thousand and 29.8 thousand in force by July 1 (of which  39.1 thousand and 9.3 thousand were concluded in II quarter). INGO  Armenia also took the lead in the number of CASCO agreements (5.8  thousand agreements in force on July 1, of which 2.4 thousand were  concluded in the second quarter). In terms of insurance for those  traveling abroad, the largest number of contracts continues to be  distinguished by INGO Armenia IC, which had 1.8 thousand valid  contracts as of July 1, but the number of those concluded in the  second quarter turned out to be higher - 4.6 thousand.  In terms of  the number of contracts concluded in the second quarter, the first  position was taken by INGO Armenia IC - 95.1 thousand, displacing  Rosgosstrakh Armenia IC - 93.5 thousand to the second position, and  retained in the next four positions: IC " Nairi Insurance "- 60.2  thousand, on the fourth - IC" RESO "- 42.7 thousand, on the fifth -  IC" Sil Insurance "- 29.2 thousand, and on the sixth - IC" Armenia  Insurance "- 25,6 thousand. For all six companies, the dominant  factor in the concluded contracts is CMTPL with the maximum for  Armenia Insurance (88%) and the minimum for INGO Armenia (39%).  With  the opening of international routes and the resumption of tourism,  the dynamics of travel insurance contracts concluded in the reporting  quarter reached a significant growth of 4 -fold (from a tangible  87.7% decline a year earlier), but for the same class, the largest  decline in the number of operating on July 1 contracts (accelerating  from 29% to 58.9%). The turn towards growth of contracts concluded  for the quarter was also recorded for insurance of cargo  transportation - by 24.4% (from a 35.3% decline a year earlier), with  the same change in the dynamics of contracts in force at the  reporting date - by 18.5% growth (from a 33.5% decline a year  earlier). The CMTPL and CASCO agreements concluded during the quarter  also increased (by 6.5-75.9% from a 23.6-25% decline a year earlier),  but the number of agreements in force on the reporting date showed  positive dynamics (30,9%), and the current CMTPL contracts remained  in decline (by 2.4%).

To recall, there are 6 companies operating in the insurance market of  Armenia, operating out of the available 20 classes of 17, 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, the line of insurance of  seismic risks (against earthquakes) has been added, and since the 2nd  quarter of 2020, the line of insurance of agricultural risks  (agricultural insurance) has been added, the data on which are not  taken into account in the totals, since they are already included in  the corresponding classes 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 as of June 30,  2021 was 495.86 AMD / $ 1).