Armenia`s insurance sector`s tax payments show 7% y/y fall in 1st  quarter of 2025 

ArmInfo. Of the 7 operating insurance companies, 3 were included in the list of the 1000 largest taxpayers of Armenia in the first quarter of 2025 (as a year ago): LIGA Insurance, INGO and Sil Insurance. This is evidenced by the data of the State Revenue Committee of the Republic of Armenia.

During the reporting period, the insurance sector of Armenia reduced tax payments to the state treasury by 7% per annum, transferring 410.7 million drams to the budget, of which 326.2 million drams were direct taxes (with an annual decline of 9.3%).

Among insurance companies, the leader in tax payments is LIGA Insurance Insurance Company, which is in 438th place (versus 379th a year ago), having transferred 177.3 million drams to the state budget, of which 143.8 million drams are direct taxes.

Next comes INGO Insurance Company (previously known as INGO Armenia), which is in 515th place (versus 882nd a year ago), having transferred 151.6 million drams to the state budget, of which 121.2 million drams are direct taxes.

This year, SIL Insurance Insurance Company, which was not included in the list a year ago, was included in the list. The company is ranked  962nd, having paid 81.7 million drams to the state budget, of which 61.1 million drams were direct taxes.

This list does not include Armenia Insurance, Nairi Insurance, REGO Insurance (formerly RESO) and EFES.

In the first quarter of 2024, the insurance sector of Armenia  increased tax payments to the state treasury by 9.3% per annum, transferring 441.4 million drams, including 359.7 million drams in direct taxes (with an annual growth of 13.2%). At that time, LIGA Insurance IC was also in the lead, followed by Nairi Insurance IC and INGO Armenia IC (later renamed INGO IC in April 2024).

Meanwhile, according to the Financial Rating of Insurance Companies of Armenia as of 31.03.2025, prepared by ArmInfo IC, out of seven insurance companies operating in the country, six managed to complete the first quarter with a profit, and two of them (LIGA Insurance and EFES) managed to bring the indicator from a negative to a positive level. Thus, the total balance sheet profit (pre-tax) increased by 85.7% year-on-year (against a 74.7% decline a year earlier), amounting to 922.6 million drams ($2.4 million) by the end of the first quarter. After paying taxes on it, a net profit of 807.2 million drams ($2.1 million) was formed, with an improvement in the  annual dynamics from a 73% decline to 82.3% growth.  The leader in net profit was LIGA Insurance IC, second place was taken by REGO Insurance IC, third place by EFES IC, fourth place by Armenia Insurance IC, fifth and sixth places were taken by Nairi Insurance and INGO IC. Only Sil Insurance IC ended the first quarter of 2025 with a loss (while a year ago it managed to ensure a profit). It should be noted that EFES IC was registered by the Central Bank of the Republic of Armenia at the end of July 2023 (The calculated exchange rate of the dram against the dollar on March 31, 2025 was 391.57 drams/$1).

With the emergence of EFES Insurance Company at the end of July 2023, 7 companies are already operating in the Armenian insurance market. Among the currently operating insurance companies, the parent structures of some of them were included in Western sanctions lists in 2022, as a result of which a reorganization process began in the market. In particular, the former RESO and Rosgosstrakh Armenia companies rebranded and changed their shareholder capital structure, re-registering as REGO Insurance and LIGA Insurance, respectively.

The Armenian subsidiary of the Russian company Ingosstrakh, EFES Insurance Company (previously known as INGO Armenia), from which EFES Insurance Company "grew", went through a slightly different path of reorganization with a spin-off of the client base.