In Armenia`s insurance market  premiums started to decrease and  compensations are losing their growth

ArmInfo.In the insurance market of Armenia in 2024, premiums began to decrease, and compensations started to lose growth, leading to a decline in profits. This is evidenced by data from the Financial Rating of Insurance Companies of Armenia as of 31.12.2024, prepared by ArmInfo IC based on  published financial reports and missing indicators requested from the insurance companies.

 Thus, in 2024, insurance premiums decreased by 2% - to 72.4 billion  drams ($182.5 million), while compensation increased by 15% - to 43.9  billion drams ($110.6 million).  This resulted in a 26% decrease of  net profit, down  to 1.98 billion drams (about $5 million). If the  new IC Efes had not significantly increased both indicators several  times, premiums on the market would have experienced a double-digit  decline, while compensation  would have seen only a modest growth.

As a comparison, we note that in 2023, the growth in premiums was  significantly lower than the growth in compensation - 17% compared to  30%, which  led to a 33% decline in the dynamics of net profit. Then  only three insurance companies managed to increase their profits,  while the remaining four saw  three  of them reducing profits, and  only the newly market player , IC, , was naturally in the red.  Now, all 7 operating ICs have completed 2024 with a profit, and  again, three of them have increased it, while four saw a decrease.  NGO experienced the highest decline ( 63%), and Efes had the highest  growth (at 2.3 times, moving out of the red). The current decline in  profits led to a double-digit decrease in premiums for the three  leading ICs (ranging from 10-57% with the maximum at INGO).  Compensation also decreased  for  one IC (by 27%, and this is again  INGO). If the IC "Efes" had not made significant efforts to increase  both premiums by 4 times and compensation by 19 times, the overall   profit in the insurance market would have dropped significantly more.