The commencement of 2020 coincided with the first wave of Covid-19. While the world dived into deficits or repressions and some industries were on the verge of collapse, the financial system endured and even recorded growth.
All 6 insurance firms of Armenia reported positive profitability, which went from 3% to a whopping 14%. This leap was due to both increased underwriting profit and investment income. The most profitable company was Armenia Insurance with 49% net profit margin, however, in terms of absolute values Ingo Armenia was an apparent leader.
The insurance market recorded less written premiums in 1st quarter of 2020 compared to the previous year. The 8% cut was primarily due to decreased CMTPL and property insurance contracts. The same can be seen for the gross compensations, though this time the fallen 16% was mainly attributable to voluntary health insurance and CMTPL again. Therefore, the overall loss ratio improved: 54% in the place of 2019’s 68%. More comprehensive information on insurance results of the first half of 2020, is available in the Armenian version of this article.