Armenian insurers 6.3-fold increase their profit level

ArmInfo. Insurance companies in Armenia receive profits through insurance mainly from CMPTL and medical insurance - 8.1-7.6 billion drams, to a slightly lesser  extent from property insurance, CASCO, accident insurance - 3.6-1.3  billion drams.

This is evidenced by the data of the IC portfolio  reports according to the standards of the Central Bank of the  Republic of Armenia, provided by ArmInfo for the preparation of the  "Financial Rating of Insurance Companies of Armenia as of  September30, 2022" which provides a comprehensive overview of each of  the insurance classes involved.

Insurance companies receive slightly less profit from general  liability insurance, cargo transportation and travel insurance -  978.7-728.4 million drams. Much lower - in the line of liability  insurance from the use of vehicles - 103.7 million drams.

According to FinRating, for other classes of insurance, due to the  absence of indemnifications during the reporting period, the profit  from the line of insurance was formed purely at the expense of  collected premiums. Thus, 494 million drams of premiums were  collected for aviation insurance, 788.3 million for financial damage  insurance, and 65.5 million drams for credit risk.

The largest y-o-y growth in profits in the line of these classes was  recorded for property insurance (2.1- fold) , general liability (  67.2%), travel insurance (61%), and slightly less in CMPTL (53%).  Then, in terms of the growth rate of this indicator, they are  followed by CASCO - by 36.4%, medical insurance - by 33.3%, cargo  transportation insurance - by 29.3%, liability from the use of motor  vehicles - by 17.6%, and a very meager increase in profits is  recorded for accident insurance - 1%.

As for other classes, profits of which were formed purely due to  premiums, the largest y-o-y growth was recorded in aviation insurance  - 2.6-fold, while in financial damage insurance this indicator  increased by a modest 10.3%. Credit risk insurance premiums decreased  by 21.4%.

Among the classes there are relatively later introduced subspecies -  insurance of seismic risks (against earthquakes) and insurance of  agricultural risks (agricultural insurance), the data on which in  addition to a separate note in the financial reports of ICs, are also  included in the relevant classes of insurance (property from fires,  natural disasters, other damages) . Of these subspecies, the profit  from seismic risk insurance is formed, due to the lack of  compensation, purely at the expense of premiums, which increased by  20.3% year-on-year, and for agricultural insurance, this time the  prevalence of compensation over premiums led to a 3-fold drop in  profit - to a loss of 326 million drams.

The leader in CMPTL and cargo insurance premiums is RosGosstrakh  Armenia IC. INGO Armenia is a leader for medical insurance, property  insurance against fires and natural disasters, against accidents,  travel insurance, CASCO, Nairi Insurance -for insurance of general  liability, property from other damages, and leadership in the field  of aviation insurance was shared between "INGO Armenia" IC (air  transport) and "Sil Insurance" IC (responsibility from the use of air  transport).