ARMENIA: by the end of 3Q2023, the net profit decreased by 9.4%

20 November 2023 — Marina MAGNAVAL
In the insurance market of Armenia, the growth of paid claims continues to accelerate and the GWP growth slows down, as a result market profits began to decline. At the end of 3Q2023, net profit decreased by 9.4% to AMD 3.2 billion (USD 8.2 million), according to the Financial Rating of Insurance Companies of Armenia, prepared by ArmInfo.

The annual growth of accumulated profit slowed down noticeably - from 90.7% to 17%, although at the same time the growth of total equity accelerated from 11.6% to 27%, which is explained by an increase in the charter capital by 20.4% due to its replenishment by three companies (Armenia Insurance, SIL Insurance, REGO Insurance) and entering of a new participant in the market. As a result, the absolute value of accumulated profit by October 1, 2023, amounted to AMD 8.5 billion (USD 21.6 million), equity capital – AMD 26.9 billion (USD 68.3 million) and charter capital – AMD 18.1 billion (USD 46 million).

The lead in net profit for 9 months of 2023 is held by Nairi Insurance (USD 2.2 million), Armenia Insurance (USD 1.8 million) moved up to second position, displacing INGO Armenia (USD 1.6 million) to third place.