ArmInfo. Armenia's insurance sector increased its net profit in Q1 2026 by 77.4% year-on-year (versus 82.3% growth a year ago), reaching AMD 1.4 billion ($3.8 million). This is the result of the ongoing impact of tariff increases imposed a year ago, which resulted in an increase in annual premium and claim growth. This is evidenced by the Financial Rating of Armenian Insurance Companies as of March 31, 2026, prepared by ArmInfo Investment Company based on published financial reports and additional data requested from insurance companies.
In particular, insurance premiums reversed their year-on-year trend from a 7% decline to a 3% increase, reaching 21.5 billion drams ($57 million), while claims rose from a 0.2% decline to a double-digit 19.4% increase, reaching 12.6 billion drams ($33.5 million).
In terms of net profit for the first quarter of 2026, INGO Insurance Company took the lead with 529.1 million drams (up from 7th place last year). Nairi Insurance Company moved up to 2nd place, from 5th place last year, with a profit of 346.7 million drams. Armenia Insurance moved up to third place from fourth last year with a net profit of 303.8 million drams. The top three companies from last year-LIGA Insurance, REGO Insurance, and Efes-ranked fifth, fourth, and seventh, respectively, in Q1 2026 with net profits of 42.7 million drams, 178.3 million drams, and 7.6 million drams. Sil Insurance, meanwhile, managed to reverse its loss and achieve a net profit of 24.1 million drams (6th place). The largest annual net profit growth was reported by INGO (196-fold) and Nairi Insurance (almost 10-fold), while REGO Insurance experienced the smallest growth (15%), and Efes experienced the largest decline (95%, compared to the highest growth of 10-fold a year ago). Armenia Insurance was able to improve its net profit dynamics, turning a minor decline into a significant 2.3-fold increase.
Efes Insurance Company retained its lead in insurance premiums with 4.2 billion drams, while falling from third to sixth in claims with 1.4 billion drams. Both indicators have declined year-on-year by similar double-digit rates of 18.3-17.3%. A year ago, it demonstrated significant growth in claims and a significantly weakened premium growth. Nairi Insurance moved up from third to second in premiums with 3.8 billion drams, maintaining its lead in claims with 2.4 billion drams. This pushed LIGA Insurance from second to third in premiums and claims, with 3.4 billion drams and 1.97 billion drams, respectively. INGO Insurance Company followed suit, moving up to 4th place in premiums (from 5th a year ago) with 3.3 billion drams, while jumping from 6th to 2nd in claims with 2.3 billion drams. Sil Insurance Company climbed to 5th place in premiums (from 7th a year ago) with 2.5 billion drams, while maintaining 4th place in claims with 1.7 billion drams. REGO Insurance Company remained in 6th place in premiums with 2.2 billion drams, while moving up from 7th to 5th in claims with 1.7 billion drams. Armenia Insurance fell to 7th place in both premiums and claims, with AMD 2.1 billion and AMD 1.3 billion, respectively.
Of the seven operating insurance companies, four saw annual premium growth (10-58%, with INGO leading the way). Five insurance companies saw annual growth in claims (5-98%, with INGO also leading the way). It's worth noting that INGO saw a significant double-digit decline in both premiums and claims a year ago. Of the seven insurance companies operating in the Armenian market, three saw a decline in premiums (Efes, Armenia Insurance, and LIGA Insurance, down 29.4-3.2%), while two saw a decline in claims (Efes and Armenia Insurance, down 17.3-7.2%).
ArmInfo analysts believe it's appropriate to clarify that the change in LIGA Insurance's position in the Armenian insurance market in 2025 was due to the ongoing transaction to transfer a controlling stake to European companies. However, on February 3, 2026, this process was completed and approved by the Central Bank of Armenia. As a result, the Austrian financial group GRAWE Group and C-Quadrat Investment Group acquired 100% of the shares of LIGA Insurance, which will continue to operate in the Armenian market without changing its name, but will indicate that it is a member of GRAWE Group. The shareholders are LIGA GRAWE Group with a 75% stake and C-Quadrat Investment Group with a 25% stake.
It is noteworthy that from this point on, life insurance will become LIGA Insurance's strategic growth area in the coming years. In this regard, the Central Bank has scheduled discussions in the National Assembly of Armenia to amend the RA Law "On Insurance" to allow for the use of a single license for life and non-life insurance.
The agency's analysts also note that the transition of insurance companies' financial reporting to the new format is increasingly contributing to the concealment of important indicators, hindering market analysis. It is worth noting that, unlike the previous reporting format, the new version lacks a unified approach to financial reporting, allowing insurance companies to selectively disclose certain balance sheet indicators. ArmInfo Investment Company is therefore requesting important data from insurance companies that is missing from the new format, as it has become difficult for them to independently analyze the market situation.
As a reminder, 18 of the 20 insurance classes currently in use in the Armenian insurance market are excluding railway liability insurance and legal and extra-judicial expenses. Only Armenia Insurance is licensed for railway insurance. INGO and Armenia Insurance are licensed for the largest number of classes, with 16 each, and LIGA Insurance for 15. Efes is the only insurance company not licensed for compulsory motor third-party liability insurance (OSAGO). (The dram to dollar exchange rate as of March 31, 2026, was 377.16 drams per dollar.)
