Thursday, February 10 2022 14:55

ArmInfo.The profit of the insurance sector of Armenia decreased by 79.2% in 2021 - to 849.4 million drams ($1.8 million), while for  Q4 alone it decreased by  60.1%.  

According to the Financial Rating of Insurance Companies of  Armenia, prepared by ArmInfo IC, 3 insurance companies ended the  reporting year with a profit, while one of the remaining three  insurance companies lingered at a loss, and two moved from positive  to negative. As a result, the total profit of 3 insurance companies  amounted to 1.6 billion drams, and the total loss of the remaining 3  insurance companies was 0.8 billion drams.

The y-o-y profit decline is due to a modest increase in premiums (by  10%), with a notable increase in compensation (by 28.9%).  And  in Q4  alone,  the profit lost weight due to a small increase in premiums  (by 2.1%) with high growth rates of compensation (by 19.9%).

NAIRI Insurance took the first place with the net profit of 2021 -  706.2 million drams (with a y-o-y decline of 46.8% and quarterly  growth of 13.1%). INGO Armenia is in the second place with 616.5  million drams (with a y-o-y decline of 45.9% and a quarterly decline  of 29.4%). Armenia Insurance is in the third place with 322.8 million  drams (with a y-o-y decline of 71.5% and a quarterly decline of  60.5%). The fourth, fifth and sixth places were hold by SIL  Insurance, RESO IC and Rosgosstrakh Armenia IC, with a loss in the  range of 54-583 million drams, which, being less than the positive  level of the other 3 insurance companies, kept positive the final  indicator for the sector.

A significant increase in indemnities coupled with a modest increase  in premiums worsened the dynamics of profit in the line of insurance  - to a 12.8% decline in y-o-y terms and a 25% decline in Q4. The  absolute value of profit from the line of insurance at the end of  2021 amounted to 17.6 billion drams, with a volume of premiums of  47.5 billion and compensations of 29.9 billion.

In 2021, INGO Armenia's insurance profit was the leader - 5.1 billion  drams (with a y-o-y decline of 15.3% and quarterly - by 34%), Nairi  Insurance was in second place - 4.2 billion drams (with a y-o-y and a  quarterly decline of 1% and 12% respectively), Rosgosstrakh Armenia  moved down to the third place - 3.1 billion drams (with a y-o-y  decline of 38.2% and a quarterly drawdown of 59.4%). SIL Insurance is  in the fourth place- 1.9 billion drams (with a y-o-yl growth of 43.6%  with a quarterly decline of 40.1%). The fifth and sixth places in  this indicator are hold by RESO IC  and Armenia Insurance - 1.8  billion and 1.5 billion drams, respectively, and the first one  increased this indicator by 7.4% over the year, decreasing by 1.8%  over the quarter, and the second, on the contrary, decreased by 20.7%  over the year, with a sharp increase of 2.8-fold in the quarter.

It should be noted that 6 companies operate in the insurance market  of Armenia, which out of the available 20 classes of insurance  operate in 17, with the exception of insurance of railway transport  and liability from its use, insurance of judicial and extrajudicial  expenses. Since Q2 2020, the insurance class for agricultural risks  has been added to the IC reports, but it is not added to the final  indicator, since it is taken into account in two other types 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 and Rosgosstrakh Armenia IC - 15. (As of  December 31, 21, the settlement rate of the dram was 480.14 AMD/$1).