Armenian incsurance sector`s profit $5.1mln in 1st half of 2025

ArmInfo. The insurance sector of  Armenia increased its net profit in the first half of 2025 by 2 times  year-on-year (against a 65.3% decline a year ago), ensuring it at the  level of 1.95 billion drams ($5.1 million). This was the result of a  strong slowdown in the annual growth of compensation from 32.4% to  4.3% (21.4 billion drams or $55.8 million) and the exit of the  dynamics of premiums from a 6% decline to 7.2% growth (41.5 billion  drams or $107.9 million). This is evidenced by the data of the  Financial Rating of Insurance Companies of Armenia as of 30.06.2025,  prepared by ArmInfo IC based on published financial reports and  additional data requested from the insurance companies.

In terms of net profit for the first half of 2025, LIGA Insurance  took the lead - 524.4 million drams, REGO Insurance moved up to  second place - 364.9 million drams, pushing Armenia Insurance to  third place - 364.7 million drams, EFES rose to fourth place - 343.1  million drams. This pushed Nairi Insurance to fifth place - 185.4  million drams, Sil Insurance to sixth place - 90.97 million drams,  and INGO to seventh place - 78.2 million drams. Of the above  insurance companies, three were able to reduce their losses to zero  and become profitable (LIGA Insurance, Efes and INGO), one this time  managed to bring profit from decline to growth (REGO Insurance - by  92.4%), and the other three insurance companies (Armenia Insurance,  Nairi Insurance and Sil Insurance) reduced their profit (by 0.2-65% -  the maximum was for Nairi Insurance).  Moreover, the largest increase  in profit for Efes Insurance Company (5.8 times) is explained by the  exit from the loss, which was then recorded as a result of the first  year of operation, but now the impressive rate of growth of  compensation with stagnant premiums allows us to assume that this  insurance company will not be able to increase profits at such a  pronounced rate in the future.

It is noteworthy that this time the leader in terms of insurance  premiums was taken by Efes Insurance Company - 7.4 billion drams,  pushing LIGA Insurance Insurance Company, which previously held the  lead, to the third position - 6.5 billion drams, with Nairi Insurance  Insurance Company in second place - 7.2 billion drams. But in terms  of compensation volume, the first two positions are occupied by Nairi  Insurance Insurance Company and LIGA Insurance Company - 3.9 billion  and 3.8 billion drams, respectively, while Efes Insurance Company is  in third place - 3.5 billion drams. Such activity of SK Efes had a  negative impact on the positions of SK INGO, pushing it down to  fourth place in premiums and fifth in reimbursements, which is a  completely expected result of the client base splitting off from INGO  to Efes.  Of the seven SKs (including Efes), two companies reduced  premiums (by 9-23%, with the maximum at LIGA Insurance), while the  other five showed growth (by 1-94%, with the maximum at REGO  Insurance).  At the same time, four SKs reduced reimbursements  year-on-year (by 3-28%, with the maximum at INGO), while the other  three increased this indicator (by 45-116%, with the maximum almost  identical growth of 2.2-2.1 times recorded at Efes and REGO  Insurance). 

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

As ArmInfo analysts note, the transfer of financial statements of  insurance companies to a new format hides more and more important  indicators from the possibility of analyzing the state of the market.  It is worth noting that, unlike the previous reporting format, the  new version does not have a unified approach to publishing financial  statements, thereby allowing insurance companies to selectively  disclose certain balance sheet indicators. This is why ArmInfo IC  requests from insurance companies the important data missing in the  new format, since it has become difficult for them to analyze the  situation on the market.

Recall that 18 of the 20 existing insurance classes are used in the  insurance market of Armenia, with the exception of liability  insurance for the use of railway transport and insurance of legal and  extra-judicial costs. Only Armenia Insurance is licensed for railway  insurance. The insurance companies licensed for the largest number of  classes are INGO and Armenia Insurance - 16, and LIGA Insurance - 15.  (The calculated exchange rate of the dram to the dollar on 30.06.25  was 384.47 drams/$1).