ArmInfo. With the continued development of state-funded universal health insurance, voluntary health insurance in Armenia is significantly losing ground, and insurance agencies are losing revenue. This is evidenced by the Financial Rating of Armenian Insurance Companies as of September 30, 2026, prepared by ArmInfo Investment Company based on published financial reports and missing indicators requested from insurance companies.
All seven insurance companies operating in Armenia reduced voluntary health insurance premiums and reimbursements by 38.3% and 29.3%, respectively, across the market, while a year ago these indicators were experiencing double-digit growth of 15-13%. As a result, the share of voluntary health insurance in total insurance market premiums decreased over the year from 31% to 19%, and in reimbursements, from 39.5% to 27.5%.
The emerging decline in health insurance premiums is due to the market's relatively successful transition from voluntary to compulsory (CHI), which significantly changes the structure of financial flows and the rules of the game for insurance companies. In this context, voluntary health insurance can only survive in narrow segments of medical services.
- those not included in the compulsory health insurance (CHI) through the development of original packages at an affordable price.
As a reminder, the compulsory health insurance (CHI) package includes outpatient care, consultations with family physicians and specialists, laboratory tests, certain types of surgical interventions, and a basic set of medications. The estimated cost of the annual CHI insurance package is 129,600 rubles. AMD (or 10,800 AMD monthly, 41% of which is subsidized by the state).
Meanwhile, analytics show that insurance companies, losing revenue in voluntary health insurance, are already increasing their focus on other classes. Premiums for the dominant class, compulsory motor third-party liability insurance (CMTPLI), have grown at a double-digit rate of 17% for the second year in a row, increasing their share of the total from 39% to 46%. At the same time, the annual growth of CMTPLI claims accelerated from 11% to 18%, increasing the dominant coverage from last year's 50% to 58%. Moreover, the continued growth of CMTPLI premiums is the result of a significant increase in tariffs that began in February 2025. Most insurance companies have now entered a flat trend, with even a few cases already showing signs of a decline. Analysts, however, fear that the loss of health insurance revenue could push the market toward a new surge in MTPL prices.
Across other classes, the following pattern emerges: travel insurance premiums increased by 65.1%, while claims grew by 32%. For CASCO, premiums and payouts increased by 34.3% and 19.1%, respectively. For aviation insurance, a 36.1% increase in premiums was accompanied by a meager volume of claims. For cargo insurance, claims increased significantly – 2.7-fold, while premiums grew by 17.3%. For accident insurance, a modest 2.4% increase in premiums was accompanied by a significant 2.1-fold increase in payouts. A decline in premiums was observed in property insurance - by 3% and in general liability insurance - by 8.5%, with a jump in compensation for both classes by 2-3.1 times. But the highest growth in premiums by tens of thousands of times was recorded for agricultural risk insurance, and for this same class the highest growth in compensation was also noted - by several hundred times. It should be noted that agricultural risk insurance was revived relatively recently: the activity of collections for this class occurred this year, thanks to state support by raising the subsidy threshold from 50-60% to 70-80% (if the damage exceeded 200%, insurance companies were entitled to compensation for this part as well) and taking on the "reinsurance function" of Until the selection of a foreign reinsurance company as a future partner for this program.
As for the remaining two classes—financial loss and credit risk insurance—in the first case, a moderate increase in premiums of 4.5% was accompanied by a 99% reduction in claims, while in the second case, a tiny, unnoticeable decline in premiums was recorded with a complete lack of payments. It should be noted that only two insurance companies, Armenia Insurance and LIGA Insurance, are licensed to insure credit risks.
Overall, total insurance premiums across the market slowed in year-on-year growth from 16.6% to a stagnant 0.2%. This was also observed in claims, which fell from 8.1% to 1.7%. The volume of claims for the first nine months of 2026 amounted to $174.5 million and $98.5 million, respectively. Premium growth, which has weakened to the point of stagnation, and the noticeably slower rate of increase in claims, limit the potential for net profit to grow at its previous rate.
This premium and claim dynamics deprives profits of the opportunity to continue growing at the previous high rate. In particular, net profit slowed year-on-year from 4x to 80%, reaching $13.9 million for the first nine months. The only insurance company to report a loss for the first nine months of this year was Efes, which had already reversed its losses and achieved a high profit a year ago. However, even then, this company experienced a significant slowdown in premium and claim growth, followed by a decline in both indicators, which narrowed the premium gap over the three-year period from 3x to 2x.
Armenia Insurance led the way in net profit for the first nine months at $3.2 million, with a 97.7% year-on-year increase. The remaining five insurance companies that ended the reporting period with a profit also managed to significantly increase their level, in particular, three of them by 88-32% (Nairi Insurance, LIGA Insurance and REGO Insurance), and two by 15-4.5 times (INGO and Sil Insurance). It is noteworthy that LIGA Insurance increased its net profit by almost 50%, having managed to zero out the loss a year ago and achieve a significant profit. Of these six insurance companies, only three increased premiums (by 17.4-5.7% - Sil Insurance, REGO Insurance and Nairi Insurance), and these same insurance companies, together with INGO, increased compensation (by 29.4-9.2% - the maximum for REGO Insurance, the minimum for INGO). Moreover, just a year ago, INGO preferred to significantly increase premiums while reducing payouts. Now, however, this insurance company is seeing the opposite trend: rising claims while premiums are declining. A similar trend in these indicators is observed at Nairi Insurance, with the only difference being that the slowdown in premium growth is accompanied by a return to double-digit growth in claims. The dynamics of premiums and claims at Efes are quite different – last year's high growth in these indicators has now given way to a decline.
In particular, Armenia Insurance, the leader in net profit, Armenia Insurance significantly increased premiums and claims for travel insurance, significantly increased property insurance premiums and claims, significantly increased general liability insurance premiums and claims, achieved high double-digit growth in CASCO premiums and claims, resumed financial loss insurance, and continued to increase credit risk insurance premiums (it and LIGA Insurance are the only companies licensed in this class). In the MTPL class, Armenia Insurance was the only one to reduce fees and payments, but the restrained pace did not prevent the overall market from maintaining double-digit growth.
The equity capital of Armenian insurance companies accelerated year-on-year from 8.5% to 16.5%, reaching $94.7 million. This was due to accelerated growth in accumulated profit from 27.3% to 41.5% and a nearly doubling of reserves (general and revaluation), while the authorized capital has remained unchanged for a year. By October 2026, the absolute value of accumulated profit reached $37 million, reserves reached $5.6 million, and the authorized capital remained at 18.8 billion drams or $51.9 million. As can be seen, the authorized capital continues to dominate the equity structure, but with a decrease in share from 64% to 55%. Meanwhile, the share of accumulated profit increased from 32% to 39%, and reserves increased from 4% to 6%.
Profit dominates the equity of three insurance companies (INGO, Nairi Insurance, and Armenia Insurance), while the authorized capital holds a larger share for the remaining four insurance companies.
LIGA Insurance maintains its leadership in terms of equity and authorized capital, having also regained its position in accumulated profit. This is supported by the serious intentions of LIGA Insurance's new owners, GRAWE Group, to strengthen their position, including through the introduction of life insurance, which will become a strategic growth area for this insurance company in the coming years. Furthermore, LIGA Insurance is preparing to enter the small and medium-sized business insurance niche, which will be a new development in the market.
The top three by current assets are INGO, LIGA Insurance, and Nairi Insurance, with a combined market share of 62%. In terms of current liabilities, INGO, Nairi Insurance, and Efes lead, also with a combined market share of over 62%. In terms of insurance premiums, Nairi Insurance, Efes, and INGO lead, with a combined market share of approximately 49%. Nairi Insurance, INGO, and REGO Insurance lead in terms of compensation, with a 50% share.
By premium breakdown by class, the leading insurance companies are: Nairi Insurance
- for compulsory motor third-party liability insurance, medical insurance, and cargo insurance; Efes - for property insurance, travel insurance, and CASCO; LIGA Insurance - for financial damage insurance; SIL Insurance - for aviation insurance (including liability insurance) and insurance of provided guarantees; REGO - for accident insurance; and Armenia Insurance - for general liability insurance, credit risk insurance, and agricultural insurance.
According to ArmInfo analysts, the transition of insurance companies' financial reporting to a new format is increasingly obscuring more and more important indicators from the possibility of a detailed market analysis. It's worth noting that, unlike the previous reporting format, the new version, mandated by the regulator, the Central Bank of Armenia, lacks a unified approach to publishing financial statements, thereby allowing insurance companies to selectively disclose certain balance sheet indicators. This is why 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 launch 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, prompting a reorganization process in the market. In particular, the former companies 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 underwent a slightly different reorganization path, with the spin-off of its client base.
- SK "INGO" (formerly INGO Armenia), from which the insurance company "Efes" "grew." And now LIGA Insurance has been acquired by European companies: the Austrian financial concern GRAWE Group and C-Quadrat Investment Group. The deal 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 the GRAWE Group.
As a reminder, of the 20 existing insurance classes, 18 are in use in Armenia, excluding liability insurance for the use of railway transport and insurance for 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 AMD/USD exchange rate as of September 30, 2026 was 362.83 AMD/$1.)
