ARMENIA: total loss of insurers in the first half of the year exceeded AMD 130 million

16 August 2021 — Marina MAGNAVAL
The insurance sector of Armenia in the second quarter of 2021 returned from loss to profit, having received AMD 94 million, however, according to the 1H results, the companies ended the first half of the year with a loss.

According to the Financial Rating of Insurance Companies of Armenia, prepared by ArmInfo, total loss of six insurers for 1H2021 amounted to AMD 130.6 million (~EUR 0.22 million*), having dropped twice y-o-y from "plus" to "minus", ArmInfo reports.

It is noted that the loss for 1H was triggered by a high annual growth of paid claims by 40.7% and a weak GWP growth by 8.9%. At that, both indicators decreased in the second quarter - GWP by 39.3% and paid claims by 5.5%.

Compared to 1H2020, three insurance companies dropped from profit to loss, while the other three companies significantly reduced their profits. The annual dynamics of 1H2021 turned out to be negative in terms of GWP for two insurance companies, and in terms of paid claims for one company, which made it possible to maintain a twofold dominance of total GWP over paid claims.

INGO Armenia ranks first in terms of net profit for the first half of 2021 - AMD 247.9 million (-74.4% y-o-y). The second place belongs to ARMENIA Insurance (AMD 208.3 million, -76.7%). NAIRI Insurance ranks third (AMD 100.2 million, -88%). The fourth, fifth and sixth positions were taken by RESO, Sil Insurance and ROSGOSSTRAKH Armenia, respectively, with a total loss of AMD 686.9 million, thus exceeding the total positive result of AMD 556.3 million of the other three companies.

*at the following exchange rate:

1 EUR = 587.62 AMD (as of 01.07.2021)

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