STATISTICS: ARMENIA, FY2018: insurers' total net profit down by 67.6%y-o-y due to fast increasing claims expenses

Armenian insurers' GWP reached AMD 41 billion (EUR 74 million) in 2018, according to data provided by ArmInfo. Denominated in local currency, the market's growth seems lower than in euro due to the Armenian dram appreciation (17.36% vs 22.97% in euro).

In local currency all main insurance classes recorded growth, except for the cargo insurance (-7.23%). The most impressive growth rates were demonstrated by accidents insurance (53.27%) and health insurance (50.37%). The leader of health insurance is INGO Armenia (its GWP in the class amounted to AMD 3.2 billion). Property insurance also saw quite good growth, especially other damages to property (40.86%).

The biggest share of GWP was generated traditionally by MTPL, but a little bit lower y-o-y (48.82% vs 54.41% a year ago), annual growth accelerated from 4.4% to 5.3%. The leader of MTPL is still ROSGOSSTRAKH Armenia (its GWP in the class amounted to AMD 5.5 billion). The second place in terms of the market share was taken by health insurance (26%), which is growing thanks to introduction of the compulsory health insurance in 2017.

The market paid claims in 2018 amounted to AMD 22.8 billion (EUR 41 million), with annual growth by 28.37%. Among the main insurance classes, the biggest growth of paid claims was recorded in accidents insurance (109.75%), and the only class, where paid claims decreased, was cargo insurance (-38.79%).

According to the Armenian Bureau of motor insurers, MTPL loss ratio in 2018 reached 72% (vs 65% a year ago). The loss ratio also went up in health insurance - up to 67% (vs 55.8%), in Motor Hull - up to 75.7% (vs 67.4%), in other damages to property - from 14.5% to 16%, and in financial risks - from 20.9% to 23.2%.

Total net profit of the Armenian insurers in 2018 decreased by 67.6% (vs annual decrease by 58% in 2017) and amounted to AMD 226.3 million. 1st place in terms of net profit volume in 2018 was taken by INGO Armenia (AMD 232.7 million, - 53.6% y-o-y), 2nd is ARMENIA Insurance (AMD 203.3 million, - 6.5%), and 3rd is NAIRI Insurance (AMD 176 million).

In terms of GWP the three leaders, if compared to the Q32018, are still the same: the ranking is headed by ROSGOSSTRAKH Armenia (~AMD 11.6 billion), followed by INGO Armenia (AMD 10.5 billion) and NAIRI Insurance (AMD 8.25 billion).

1 EUR = 580.10 Dram - AMD (December 31st, 2017)

1 EUR = 553.65 Dram - AMD (December 31st, 2018)

Access and download FY2018 Armenia insurance market statistics.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

ARMENIA: export insurance in 2018 increased by 73%

In 2018 export insurance recorded a significant growth. Total insured amount was AMD 7.9 billion (+73% y-o-y), at that total insurance premiums exceeded the planned level for 2018-2020 by 31%, as the press office of the Export Insurance Agency of Armenia announced.


ARMENIA: launch date of agro insurance project is not yet determined

The Agricultural Ministry of Armenia previously announced that around the end of 2018 and beginning of 2019, insurers would start to sell agro insurance policies. However, as of now, launch of the agro insurance project is not yet determined and no memorandums are signed with insurers, as member of the Agricultural Alliance and Council to the CEO of NAIRI company, Artak MARTIROSYAN, announced.



Bulgaria: Boiko ATANASSOV appointed as FSC's head

The Parliament of the Republic of Bulgaria appointed Boiko ATANASSOV as Chairperson of the Financial Supervision Commission (FSC) on March 15, with 134 votes in favour, none opposed or abstained.



Climate and cyber: two Cs with catastrophic potential and the insurance business - under debate in Vienna, on April 9

10 years after its inception, the Romanian mandatory dwelling insurance system has progressed and PAID, the pool underwriting and managing the mandatory policies is a strong and financially sound institution. "We are currently managing a reinsurance program worth EUR 920 million, with a pool of excellent reinsurers, more than half of them rated AA+, while the company's solvency rate is of 220%," recently stated Nicoleta RADU, CEO, PAID.


Conclusions: TBILISI - the first Georgian International Insurance Conference

The first Georgian International Insurance Conference took place on 14 March 2019. The event put under scrutiny the current status and the future development perspectives of the local market, in an attempt of identifying the main growth opportunities. The forthcoming launch of the mandatory MTPL system was the most important topic on the agenda, as this new line of business has the potential to provide for a significant growth, but also to become a market disruptor.


See all