ArmInfo. The total profit of insurance companies (ICs) of Armenia for Q1 2022 exceeded 1.2 billion drams (over $2.5 million), with a 4-4.4-fold climb in terms of y-o-y and quarterly (against a 2.2-2.5-fold decline in the comparable periods of 2021).
Moreover, the quarterly dynamics fixes an increase in the positive level, and the y-o-y dynamic changed from negative dynamics to positive one. In Q1 2022, compared to Q1 2021, all ICs significantly increased their profits, with three of them providing significant growth trough the change of dynamics from loss to profit.
According to the Financial Rating of Insurance Companies of Armenia, prepared by ArmInfo IC, this was observed against the backdrop of a more significant y-o-y decline in indemnities (by 46.7%) than premiums (by 18.7%), while a year earlier both indicators were growing by 25.6% and 3.1% respectively. At the same time, on a quarterly terms, both premiums and indemnities kept growing, in particular, premiums with an acceleration of rates to 82% and indemnities with a slowdown to 9.1% (against 2.1-20% growth indemnities 2021).
The first place in terms of net profit for Q1 2022 was taken by "Nairi Insurance" - 426.04 million drams (with a 16-fold y-o-y climb with a quarterly growth of 32.5%). The second place was taken by "Rosgosstrakh Armenia" IC - 289.5 million drams (with a 2.5-fold y-o-y growth and a 3.3-fold quarterly growth, with an exit from the loss). The third place is occupied by "INGO Armenia" IC - 193.03 million drams (with a 2.9-fold y-o-y growth and quarterly growth of 26.5%). The fourth place continues to be occupied by "RESO" IC - 136.3 million drams (with a 3-fold y-o-y growth and a 4.3-fold quarterly growth, with an exit from the loss). "Armenia Insurance" occupied the fifth place - 118.4 million drams (with a 2.3- fold y-o-y growth and a 3.7-fold quarterly growth). And "Sil Insurance" occupied the sixth place- 53.4 million drams, with a 2.5-fold y-o-y growth, with a quarterly decline in profit of only 3.1%. (with an exit from a loss). A more significant y-o-y decline in indemnities than in premiums reversed the dynamics of profit in the line of insurance from a 12.7% decline to a 32.8% increase - up to 11.5 billion drams. The same reversal in the dynamics of this indicator was recorded in quarterly terms, but with an exit from the 25% decline to a more significant 3.6-fold increase, due to a noticeable acceleration in the growth of premiums while a sharp slowdown in the growth of indemnities.
It should be noted that there are 6 companies operating in the insurance market of Armenia, which work on 17 out of the available 20 classes of insurance, with the exception of insurance of railway transport and liability from its use, insurance of legal and extrajudicial expenses. Since Q2 2020, a class of agricultural risk insurance has been added to the IC reports, but it is not summed up to the final indicator, since it is taken into account in two other types of insurance: property from fires and natural disasters; property from other damages. "INGO Armenia" IC - 16 and "Rosgosstrakh Armenia" IC - 15 are licensed with the largest number of classes.
