Net profits of Armenian insurance companies last year slash by 54 percent

YEREVAN, March 20. / ARKA /. Total net profits of Armenian insurance companies in 2012 slashed by 54% from a year earlier to about 961.1 million drams.

Five of seven companies closed the year with a profit, while the other two- Sil Insurance and RosgosstrakhArmenia– ended it with total losses of 511.7 million drams, which was the main cause behind the decline in  net profits of insurance companies.

RosgosstrakhArmenia’s losses amounted to 373.2 million drams against 405.2 million drams in profit in 2011. RossgostrakhArmeniablamed the fall on high proportion of car insurance cases in its overall portfolio, highlighting  the increased number of car accidents across the country. This in mind the company said it may revise the current tariffs on mandatory car insurance after appropriate changes are made in the legislation. Sil Insurance’s losses last year totaled 138.5 million drams.

According to the findings of an ARKA study, the leading insurance company last year in terms of net profit was Reso which earned  436.2 million drams against 157.9 million drams in 2011.

Second was Armenia Insurance with 402.5 million drams in net profits, which nearly doubled from 2011. They were followed by Nairi Insurance (about 252.4 million drams, down from 522.9 million drams in 2011, Garant-Limens  (about 233.4 million drams, up from 167.2 million in 2011 year) and Ingo Armenia  (about 148.1 million drams, down from 484.8 million drams in 2011). ($ 1 – 415.75 drams). -0 –