Substantial rise in OSAGO tariffs allow Armenian insurance market to  significantly increase profits

ArmInfo.  A substantial  increase in tariffs for compulsory motor third party liability insurance (OSAGO) since February of this year has enabled insurance companies  to greatly enhance the efficiency of their operations and achieve  significant profits, as evidenced by  data from the Financial Rating  of Insurance Companies in Armenia as of 30.06.2025, prepared by  ArmInfo IC based on published financial reports and requested  indicators that were previously unavailable from the insurance  companies.

Thus, the active (mandatory) sale of OSAGO policies and seasonal  passivity in compensation for this class helped to improve the  overall profitability of the insurance sector. The annual dynamics of  insurance premiums improved from a 6% decline to a 7.2% growth.  Additionally, there was a significant slowdown in the growth of  compensation from 32.4% to 4.3%, This resulted in compensation   values of 41.5 billion drams ($108 million) and 21.4 billion drams  ($56 million)  for the first half of the year, respectively. As a  result, the net profit increased from a 65.3% decline to  more  double, with a total profit of 1.95 billion drams (over $5 million)  for the first half of the year.

The leader in net profit was LIGA Insurance Company with 524.4  million drams ($1.4 million). They were able to turn a loss into a  significant positive level within a year by maintaining a significant  prevalence of premiums over compensation. All insurance companies in  Armenia ended the first half of 2025 with a profit. Three insurance  companies (LIGA Insurance, Efes and INGO) moved from a loss to a  positive level, while three others (Nairi Insurance, Armenia  Insurance and Sil Insurance) decreased their profit. REGO Insurance  saw a significant  increase in profit.