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.
