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.
