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).
