ArmInfo. Armenian insurance companies, having improved premium dynamics, were able to maintain high profit growth rates. In Q1 2026, the annual premium dynamics, which declined from a 7% decline to a 3% increase, enabled net profit growth to reach 77.4% (compared to 82.3% growth a year ago).
However, the slight slowdown in profit growth is attributed to a more pronounced improvement in insurance claims dynamics, from a 0.2% decline to 19.4% growth, as evidenced by the Financial Rating of Armenian Insurance Companies as of March 31, 2026, prepared by the ArmInfo Investment Company based on published financial reports and missing indicators requested from insurance companies.
As a result, insurance premiums for the reporting quarter reached 21.5 billion drams ($57 million), insurance indemnities exceeded 12.6 billion drams ($33.5 million), and net profit amounted to 1.4 billion drams ($3.8 million). It should be noted that this improvement in premium dynamics is the result of the long-term impact of a significant increase in compulsory motor third-party liability insurance (CMTPL) rates since February 2025, which enabled insurance companies to significantly improve their operational efficiency and achieve significant profits. Specifically, annual growth in MTPL premiums accelerated in Q1 2026 to 17.3% (from 13.8% a year ago), which was also reflected in claims in this class, where annual growth accelerated more significantly – from 3.6% to 20.5%.
This time, INGO Insurance Company led in net profit with 529.1 million drams ($1.4 million), managing to significantly increase it by 194 times over the year (the highest rate in the market), thanks to a significant 58.2%-97.5% growth in both premiums and claims, which had declined significantly from 25.8% to 45.3%. Moreover, this insurance company significantly improved both premium and claim growth for its compulsory motor third-party liability insurance (CMTPLI), accelerating annual premium growth from 12.2% to 71.2% and reversing claim growth from a 21.5% decline to a significant 2.5-fold increase. All seven insurance companies posted profits in the first quarter of 2026, including Sil Insurance, which managed to reverse last year's loss and return to profit.
CMTPLI maintains its leadership, delivering double-digit growth in both premiums and claims
As expected, compulsory motor third-party liability insurance (CMTPLI) retains its premium leadership, with its share increasing from 37.3% to 42.7% over the year. Health insurance, which held second place, conversely, saw its share decline from 29.6% to 24.4%. Of the remaining insurance classes, property insurance had a more or less significant share at 12.5% (versus 16.5% a year ago) and comprehensive insurance at 9.7% (compared to 7.5% a year ago). The share of accident insurance increased over the year from 3.1% to 3.8%, cargo insurance from 1.9% to 2.2%, travel insurance from 0.9% to 1.6%, and general liability insurance decreased slightly from 1.7% to 1.6%.
Other leading insurance classes in terms of compensation were compulsory motor third-party liability insurance (CMTPL) at 55.5% (compared to 54.7% a year ago) and medical insurance at 32.4% (compared to 35.6% a year ago). Next, with a significant gap, come CASCO, with an increase in share from 6.6% to 7.3%, accident insurance - from 0.4% to 1.7%, cargo insurance - from 0.9% to 1.5%, property insurance - from 1% to 1.2%, and travel insurance, the share of which, on the contrary, decreased from 0.6% to 0.4%.
Of the aforementioned dominant insurance classes, specifically MTPL, premium growth has accelerated, while health insurance premiums continued to decline at double-digit rates, despite significant acceleration in reimbursement growth for these two classes. For MTPL, premium growth accelerated from 13.8% to 17.3%, accompanied by a more significant acceleration in reimbursement growth, from 3.6% to 20.5%. For health insurance, the slowdown in the annual premium decline from 27.1% to 15.6% was accompanied by an acceleration in reimbursement growth from 4.3% to 12%.
For property insurance, premiums declined further, from 11.5% to 23%, while reimbursement dynamics reversed from an 86.2% decline to a 36% increase. Here, we consider it appropriate to note that this class is represented by two types: property insurance against fires/natural disasters and property insurance against other damages. The volume of premiums and indemnities for the former significantly exceeds the latter. Premiums for the former decreased by 27.5%, while premiums for the latter jumped 3.2 times. Indemnities for both classes also showed opposite dynamics, with the former growing by 49.8% and the latter declining by 73.7%. It should be noted that these classes are used in the issuance of mortgages and agricultural loans. Moreover, it is precisely within these property insurance classes that a relatively new type of insurance is taken into account: agricultural risk insurance. However, although it is listed as a separate line item in the requested financial reports of insurance companies, it is missing from the published reports. For CASCO, premium growth accelerated from 24.8% to 31.7%, accompanied by a slowdown in claims growth from 99.6% to 42.1%. In Armenia, this insurance class, being voluntary, is used alongside mandatory compulsory motor third-party liability insurance (CMTPLI) for car loans and new vehicle purchases, and less frequently—only at the owner's discretion.
For accident insurance, premium growth accelerated from 10.1% to 26.6%, with a sharp reversal in claims growth from a 44% decline to a significant 2.4-fold increase. For cargo insurance, premium growth reversed from a 33.2% decline to a 13.3% increase, accompanied by a reversal in claims growth from a 43% decline to a modest 0.9% increase. General liability insurance saw an acceleration in the decline in premiums, from 29.7% to 42.3%, while claims growth reversed from a 15.4% decline to a significant 2.4- fold increase. Travel insurance premiums recovered from a 10.5% decline to 77.3% growth, while claims growth reversed from a significant 3-fold increase to a 31.1% decline. For aviation insurance (including liability for the use of air transport, including cargo), premiums, which had jumped several-fold a year ago, have now stalled in their growth to 20%, while claims, although finally recovering from zero, remain stuck at a meager level.
It's worth noting that, after two years of inactivity, agricultural insurance has revived. According to the National Agricultural Insurers Agency (AINA), total insurance premiums for this class in Q1 2026 amounted to 705.5 million drams ($1.9 million), of which 55% (387.7 million drams) was the share of insurance companies, and 45% (317.9 million drams) was subsidized. TOP 3 in the insurance market
The top three in terms of insurance premiums are Efes, Nairi Insurance, and LIGA Insurance, with a combined market coverage of 53%, and in terms of claims, Nairi Insurance, INGO, and LIGA Insurance, with a combined market coverage of 52%. The top three companies by net profit for Q1 2026 were INGO, Nairi Insurance, and Armenia Insurance, collectively accounting for 86%.
According to ArmInfo analysts, the transition of insurance companies' financial reporting to a new format is increasingly obscuring more and more important indicators from a detailed market analysis. It's worth noting that, unlike the previous reporting format, the new format lacks a unified approach to financial reporting, allowing insurance companies to selectively disclose certain balance sheet indicators. Therefore, ArmInfo IC is requesting insurance companies to provide important data missing from the new format, as it has become difficult for them to independently analyze the market situation.
It's worth noting that, with the entry of Efes Insurance Company in July 2023, seven companies are already operating in the Armenian insurance market. Among the currently operating insurance companies, the parent companies of several were placed on Western sanctions lists in 2022, triggering a market reorganization process. Specifically, the former RESO and Rosgosstrakh Armenia rebranded and changed their shareholder structure, re-registering as REGO Insurance and LIGA Insurance. The Armenian subsidiary of the Russian company Ingosstrakh, INGO Insurance (formerly INGO Armenia), which spun off Efes Insurance Company, underwent a slightly different reorganization process, with the spinoff of its client base. LIGA Insurance has been acquired by European companies: the Austrian financial group GRAWE Group and C-Quadrat Investment Group. The transaction was approved by the Central Bank of Armenia on January 30, 2026. LIGA Insurance will continue to operate in the Armenian market without changing its name, but will indicate that it is a member of GRAWE Group. The shareholders of this insurance company are GRAWE Reinsurance Limited LLC holding with a 75% stake and C-Q Investment Group LLC holding with 25%.
Recall, 18 insurance classes out of the 20 existing ones, are currently used in Armenia, excluding liability insurance for the use of railway transport and insurance of legal and extra-judicial expenses. Only Armenia Insurance is licensed for railway insurance. INGO and Armenia Insurance are licensed for the largest number of classes (16) and LIGA Insurance (15). (The estimated AMD-USD exchange rate as of March 31, 2026, was AMD 377.16/1$.)
