ArmInfo.The total net profit of insurance companies (ICs) in Armenia for H1 2022 reached 2.3 billion drams ($5.6 million), with a y-o-y 19-multifold increase, with a quarterly decline of 13.1%, against a y-o-y decline of 2-fold and a quarterly increase of 2.5-fold in comparable periods in 2021.
Moreover, the quarterly dynamics fixes a decrease in the positive level, and the y-o-y dynamics fix an improvement from a negative trend to a positive one. In H1 2022, compared to H1 2021, three ICs significantly increased profits, while the remaining three provided significant growth due to the change from loss to profit. And on quarterly terms, an increase in profits was recorded for three ICs, and less significant than a decrease in profits for the other three ICs.
According to the Financial Rating of Insurance Companies in Armenia, prepared by ArmInfo, the y-o-y increase in profits was observed against the backdrop of an increase in premiums by 22%, with a decrease in indemnities by 5.4%, while a year earlier both indicators were on the rise, and indemnities were more significant than premiums - 40.7% versus 8.9%. At the same time, on quarterly terms, both premiums and compensation turned the dynamics towards a 17.6-25.1% decline from 82-9.1% growth in Q1.
Leadership in terms of net profit for H1 2022 was secured by "Nairi Insurance" - 632.4 million drams (with a y-o-y 6.3-multifold increase, with a quarterly decline of 51.6%). "Rosgosstrakh Armenia" IC held the second place - 517.02 million drams (with a y-o-y 3-fold increase, improving from the loss, and a quarterly decline of 21.4%). The third place is occupied by "INGO Armenia" IC - 492.7 million drams (with a y-o-y growth of 98.8% and quarterly growth of 55.3%). The fourth place continues to be occupied by "RESO" IC - 280.6 million drams (with a 4.8-fold y-o-y growth, improving from the loss, and a quarterly growth of 5.9%). "Armenia Insurance" occupied the fifth place - 245.6 million drams (with a y-o-y growth of 17.9% and quarterly growth of 7.4%). And the sixth place was taken by "Sil Insurance" - 105.1 million drams, with a 3-fold y-o-y growth (improving from the loss), with a quarterly subsidence of profit by 3.2%. The y-o-y decline in indemnities with a double-digit increase in premiums reversed the dynamics of profit in the line of insurance from a 19.3% decline to a 70.6% increase - up to 15.1 billion drams. But on quarterly terms, the dynamics of this indicator turned in the opposite direction from a 3.6-fold towards a 9.5% decline, as a result of a reversal of the premium and compensation trend from growth to decline.
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. The agricultural risk insurance class has been added to the IC reports since the Q2 2020, but it is not added 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) lead in licensing the largest number of classes.
