ARMENIA: In 2023, net profit of the insurance sector decreased by 33%

21 February 2024 — Marina MAGNAVAL
In 2023, net profit of the Armenian insurance sector decreased by 33%. While a 4.5-fold jump was recorded a year ago in 2022.

“This resulted from higher claims growth of 30% with a modest 17% increase in premiums. A year ago, on the contrary, premiums grew high, and paid claims almost stagnated”, ArmInfo analysts explain.

According to the data of the Financial Rating of Insurance Companies of Armenia as of December 31, 2023, prepared by ArmInfo, in the 4Q2023 alone, a loss of AMD 663.7 million (USD 1.6 million) was recorded in the insurance industry.

As a result, the insurance sector’s net profit at the end of 2023 amounted to AMD 2.6 billion (USD 6.4 million). Analysts note that this is due to the high growth rates of paid claims in such classes as property insurance, cargo, MTPL, Motor Hull, agrioinsurance and health insurance.

In terms of net profit in 2023, Armenia Insurance company took the lead with AMD 765.3 million, moving Nairi Insurance to second position with AMD 653 million.

*1 USD = 404.79 AMD as of December 31, 2023