Tue, 8 July
31.1 C
Yerevan
USD: 384.19 RUB: 4.90 EUR: 450.58 GEL: 141.45 GBP: 521.65

Armenian insurance companies’ profits expected to double in 2016-2018

YEREVAN, August 25. /ARKA/. Armenia’s insurance companies expect that their profits will be growing throughout three years and will double by late 2018, the Central Bank of Armenia says in its report ‘Possible Developments of Armenia’s Banking Sector in 2016-02018’ based on programs of prospective development of Armenian banks.

According to the report, insurance companies’ ROA and ROE will average 6.0% and 13.0% respectively against 3.3% and 8.6% in 2015.

Armenian insurance sector’s average annual growth of capital is expected to stand at 9.3% in 2016-2018.

It will be mostly insured by the expected increase of undistributed profits.

Ownership capital’s share in the insurance companies’ total capital is believed to shrink to 66.6% by late 2018 from 87% in late 2015, while the share of undistributed profits is expected to grow to 27.6%.

As a result, the companies’ capital adequacy index will rise 23.1 percentage points mainly thanks to the progressive increase of the size of normative capital and reach 192.6% by late 2018.

Assets of Armenia’s insurance companies are predicted to grow 6.3% every year over a period between 2016 and 2018.

Deposits in banks dominated the insurance companies’ assets in 2015 with 35.8%. Securities, including papers on REPO transactions, made up 19.0% of the insurance companies’ assets and the financial means received on insurance and reinsurance 9.0%.

Average annual growth of deposits in banks is projected at 8.5% and their share in the total amount of assets at 37.9%.

Securities are projected to grow 6.0% making up 18.9%of the total assets and financial receipts on insurance and reinsurance are believed to shrink 6.3%, on average, every year with the share of 9.0%.

According to outlooks the report, annual growth of the insurance companies’ liabilities will be recorded at 4.2%.

In late 2018, technical reserves will dominate their liabilities with 77.0% against 71.0% in late 2015.

Armenian insurance companies’ assets totaled AMD 40.2 billion in late June 2016 after growing 3.5% since the beginning of the year and liabilities AMD 22.1 billion showing a2% decline.

Their capital amounted to AMD 18 billion (11% growth).

As many as six insurance companies operate in Armenia now. ($1 – AMD 474.25). -0—

spot_img

POPULAR

Moody’s affirms Armenian government ratings at Ba3 with stable outlook

On June 26, 2025, Moody's affirmed the long-term issuer ratings in national and foreign currencies and senior unsecured debt in foreign currency of the Armenian government at Ba3, maintaining the stable outlook, the press service of the Ministry of Finance of Armenia reported.

Inflation of 3.9% registered in Armenia in June

In the consumer market of Armenia, 12-month inflation in June of this year amounted to 3.9%, according to the report of the National Statistical Committee (NSC) of Armenia.

Arka news agency’s ranking of most profitable Armenian banks in 2019

In 2019, Armenia-based commercial banks earned a total of 78.8 billion drams in net profit, up from 56.4 billion drams they had earned in 2018, according to ARKA news agency's ranking of the most profitable commercial banks in the fourth quarter of 2019

Top 10 banks of Armenia by loan portfolio for 1st H 2020

ARKA News Agency has singled out ten banks for their big loan portfolios as of June 30, 2020

Net inflow of remittances to Armenia from abroad increased by 13.9% over 5 months

The net inflow of private remittances in Armenia from abroad sent through the  banks in January-May 2025 amounted to $511.7 million, compared to $449.4 million in January-May 2024, according to a report by the Central Bank.

LATEST NEWS

spot_imgspot_imgspot_img