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).
