Saturday, August 20 2022 13:57
Karine Melikyan

FinRating ArmInfo: The corporate component dominates in the premium  portfolios of Armenian insurers, while the retail component dominates  in compensations

FinRating ArmInfo: The corporate component dominates in the premium  portfolios of Armenian insurers, while the retail component dominates  in compensations

ArmInfo. The share of the corporate component continues to prevail over the retail one in the premium portfolios of Armenian insurers in H1 2022, - 58.2% (19.7  billion drams) against 41.8% (14.1 billion drams), which is very  close to the data of a year ago - 57% against 43% respectively.  

According to the Financial Rating of Insurance Companies in Armenia,  prepared by ArmInfo, the capacity of the retail insurance market has  sharply accelerated growth to 23.5% from 7.6% a year earlier, which  was also observed in the dynamics of corporate insurance - from 10.9%  to 30.1%.

According to the results of H1 2022, corporate insurance prevails in  the premium portfolios of four companies, while the retail component  dominates in two insurance companies - RESO and Sil Insurance.  "INGO  Armenia" continues to have the largest gap between corporate and  retail insurance- 73% for corporate against 27% retail, and "Nairi  Insurance" the smallest gap - 51.9% retail against 48.1% for  corporate. And of the two insurance companies, in which the retail  component dominates, RESO has the highest gap of retail -65.2%,  against 34.8% for corporate and the lowest for Sil Insurance -53.5%  retail against 46.5% for corporate.

A year earlier, according to the results of H1  2021, INGO Armenia  (68.2%) also stood out as the largest dominant of the corporate  portfolio in terms of premiums, and two insurance companies with the  dominant retail component were RESO (63.9%) and Nairi Insurance (51.  5%).

The share of payments made to retail customers for insurance losses  in H1 2022 was 64.1% or 8.5 billion drams, the corporate ones - 35.9%  or 4.7 billion drams, against 63.7% and 36.3%, a year earlier,  respectively. At the same time, the dynamics of compensations of both  legal entities and individuals decreased by 3.9% and 2.4%,  respectively, compared to the growth of 37% and 12% in both cases  last year.  Only one insurance company dominated the indemnity  portfolio in the reporting period - INGO Armenia (61.4%), while the  remaining five insurance companies had a retail component  (Rosgosstrakh Armenia had the highest dominance in retail trade -  92.2%) , which repeated the data of a year ago with a single dominant  the corporate component of "INGO Armenia" (56.5%), and the maximum  retail dominant, as now, of Rosgosstrakh Armenia (86.3%).

The share of corporate insurance in H1  2022 in terms of premiums  transferred for reinsurance, amounted to 81.6% or 5.2 billion drams  (with an acceleration of y-o-y growth from 27% to 50.9%), and retail  insurance - 18.4% or 1.2 billion drams (with a slowdown in y-o-y  growth from 2-fold to 41.4%), against 80.6% and 19.4% a year earlier,  respectively. The largest dominance of the corporate component in the  premiums listed for reinsurance was recorded by "Armenia Insurance" -  96.9% against retail 3.1%, and the smallest gap was recorded by "Sil  Insurance" - 50.9% against retail 49.1% . A year earlier,  Rosgosstrakh Armenia IC had the largest gap between the corporate  component and the retail component - 94.5% against 5.5%, and "Sil  Insurance  had the smallest- 70.4% against 29.6%.

Armenian insurers concluded 388,523 contracts in Q2 2022, with an  acceleration of y-o-y growth from 9.7% to 12.2%. Thus, as of July 1,  2022, the number of active insurance contracts was 962,950 with a  change in y-o-y dynamics, from a 3.8% decrease to a 5.8% increase. 

CMPTL is the leader in the number of contracts signed in the classes,  280,109 thousand contracts in Q2, according to which the number of  valid contracts reached 569,271 thousand as of July 1. The most  common types of voluntary insurance is accident insurance, the number  of contracts of which is 38,601 thousand, and as of July 1, the  number of active contracts reached 188,670 thousand.

And in terms of demand, travel insurance ranks third in terms of the  number of contracts signed in the reporting quarter, 29,002 thousand,  but medical insurance completes the top three in terms of the number  of active contracts until July 1. 72,569 thousand

"Rosgosstrakh Armenia" IC is the leader in the number of  active  contracts by July 1 in the CMPTL segment: 166,494 thousand (of which  74,550 thousand were signed in Q2), which holds the lead in terms of  the number of contracts in the medical insurance segment as well-  38.3 thousand (of which only 2055 thousand were signed in Q2 alone).

INGO Armenia is the leader in the number of contracts in the accident  insurance sector, with 85,048 thousand active contracts as of July 1  (of which 12,547 thousand were signed in Q2).

In CASCO the championship was taken by IC "Nairi Insurance" (6.069  thousand contracts valid as of July 1, of which 2.027 thousand were  concluded in the II quarter).

"Nairi Insurance" holds leadership in CASCO  (6,069 thousand  contracts valid as of July 1, of which 2,027 thousand were signed in  Q2).

INGO Armenia IC stood out with the largest number of contracts in the  insurance of people going abroad (travel insurance), which had 5,892  thousand active contracts until July 1, but managed to sign 12,643  thousand contracts in Q2.

And in the terms of the insurance of agro-risks that started in 2020,  which since the launch has been carried out by only 3 insurance  companies (Rosgosstrakh Armenia, INGO Armenia and Sil Insurance), the  number of valid contracts by July 1, 2022 amounted to 3.610 thousand,  but a little more contracts were concluded in Q2 -3,868 thousand.

Moreover, "Sil Insurance" is the leader in terms of the number of  agricultural insurance active contracts as of July 1, 2022, (1.611  thousand), and "INGO Armenia" is in the lead in terms of the number  of contracts concluded for Q2 in this class, (1.473 thousand).

According to the number of contracts concluded in Q2, the first place  is occupied by "Rosgosstrakh Armenia" - 98.476 thousand, the second -  by "Nairi Insurance" - 85.780 thousand, the third - by  "INGO  Armenia" - 73.480 thousand, the fourth - by "RESO" - 50.335 thousand,  the fifth -  "Sil Insurance" - 49.355 thousand, the sixth - "Armenia  Insurance" - 31.097 thousand. CMPTL is dominant in the concluded  contracts in all the abovementioned six companies,  with a maximum of  Armenia Insurance (86.7%) and a minimum for INGO Armenia (48.9%).

The largest growth in contracts concluded in Q2 was recorded for  general liability insurance - 4.5-fold (against 20.4% growth a year  earlier) and travel insurance - 3-fold (against 4-fold growth a year  earlier), of these, travel insurance is also leading in terms of the  growth of contracts valid as of July 1 - 3.4-fold, with the change of  dynamics from last year's 59% decline.

During the quarter, there was a y-o-y decline in contracts signed for  five classes of insurance: accident, financial loss, CASCO and  medical insurance, with accident insurance (44.8%) showing a  significant downward trend.

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.  

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