ArmInfo. MTPL premiums continue to rise, while health insurance premiums are declining.
According to the Financial Rating of Armenian Insurance Companies as of June 30, 2026, prepared by ArmInfo News Agency based on published financial reports and missing data requested from insurance companies, MTPL premiums accelerated year-on-year from 16% to 18.5%, while health insurance premiums fell even further, from 4.7% to 34.7%. Meanwhile, it is these two classes that support the market, accounting for 45.2% and 19.8%, respectively.
While the rapidly growing premiums for compulsory motor third-party liability insurance (CMTPLI) are the result of a significant tariff increase (starting in February 2025), the accelerated decline in health insurance premiums is due to the market's transition from a private (VHI) system to a state-run universal health insurance (CHI), which is changing the structure of financial flows and the rules of the game for insurance companies. Specifically, starting in 2026, the country will introduce mandatory state health insurance, which is causing the classic commercial segment and voluntary corporate packages to undergo a transformation.
At the same time, CMTPLI reimbursements accelerated year-on-year from 8.7% to 17.7%, while health insurance reimbursements reversed from a 12.3% increase to a 20.7% decline. These two classes also dominate in terms of claims, accounting for 56.6% and 30.1% of the market, respectively.
The following picture emerges for the remaining classes: property insurance premiums increased by a paltry 2.1%, while claims jumped 2.4-fold; travel insurance premiums increased by 49.5%, while claims grew modestly by 6.8%; accident insurance saw a near-stagnant 0.4% increase in premiums, accompanied by a strong 85.3% increase in claims; CASCO premiums and claims increased almost equally, by 29.6- 27.6%; aviation insurance saw a 41.4% increase in premiums, accompanied by a negligible increase in claims; cargo insurance saw a more significant increase in claims (23.2%) than in premiums (15.9%). In general liability insurance, a significant 50.3% decline in premiums was accompanied by a significant 69.4% increase in claims.
Meanwhile, the highest premium growth-tens of thousands of times-was recorded for agricultural risk insurance (with no claims at all), which is explained by the relatively recent revitalization of this sector. This segment has been revitalized this year thanks to government support, including raising the subsidy threshold from 50-60% to 70-80% and the state assuming the "reinsurance function" until the selection of a foreign reinsurance company as a future partner for this program.
As for the remaining two classes-financial loss insurance and credit risk insurance-in the former, a moderate 16% increase in premiums was accompanied by a threefold jump in claims, while in the latter, premiums increased by only 3.8% with no claims at all (only two insurance companies-Armenia Insurance and LIGA Insurance-are licensed to insure credit risks).
Overall, total insurance premiums across the market slowed in year-on-year growth from 7.2% to 1.1%, while total claims maintained growth at an accelerating rate from 4.3% to 4.7%, reaching $114 million and $63.4 million, respectively, in the first half of 2026. Premium growth, which has weakened to the point of stagnation, and the continued upward trend in claims limits the potential for significant net profit growth.
Profits are losing the ability to grow at their previous high rates
This premium and claim dynamics deprives profits of the ability to continue growing at their previous high rates. Specifically, net profit slowed year-on-year from 2x to 71.4%, reaching $9.1 million in the first half of the year. The only insurance company to report a loss in the first half of this year was Efes, which had shown strong profits just a year ago, but even then, its premiums had already stagnated, which, in fact, turned into the largest market decline a year later.
Armenia Insurance Insurance generated the leading net profit in the first half of the year, reaching $2.1 million, with a 2.1x year-on-year increase. Of the other five insurance companies that ended the reporting period with a profit, three also managed to significantly increase their profits (by 2.4-8.3 times - Sil Insurance, Nairi Insurance, and INGO). REGO Insurance saw its growth slow significantly to 49%, and LIGA Insurance only slightly increased its net profit. It's worth noting that LIGA Insurance has had new shareholders since the end of January 2026: the Austrian financial concern GRAWE Reinsurance Limited LLC (75%) and the investment group CQ Investment Group LLC (25%).
Of these six insurance companies, only three increased premiums (by 31.3%-5.8% - Sil Insurance, REGO Insurance, and Nairi Insurance). These same insurance companies, along with INGO, also increased their claims (by 41%-9.8% - the highest for INGO, the lowest for Nairi Insurance).
Armenia Insurance, the leader in net profit, significantly increased travel insurance premiums and claims, significantly increased property insurance premiums and claims, significantly increased general liability insurance premiums and claims, achieved high double-digit growth in CASCO premiums and claims, resumed financial loss insurance, and continued to increase credit risk insurance premiums.
Equity is growing due to profits, while the authorized capital has remained unchanged for a year.
The total equity capital of insurance companies accelerated year-on-year from 5.5% to 16.2%, reaching $90.6 million. This was due to accelerated growth in accumulated profit from 16.6% to 36.2% and a more than twofold increase in reserves (general and revaluation), while the authorized capital has remained unchanged for a year. Moreover, the growth in accumulated profit could have been much higher, were it not for the significant decline in this indicator at Efes Insurance Company. By July 2026, the absolute value of accumulated profit reached $33.2 million, reserves reached $5.8 million, and the authorized capital remained at AMD 18.8 billion or $51.2 million. As can be seen, the authorized capital continues to dominate the equity structure, but with a decrease in share from 65.6% to 56.5%. Meanwhile, the share of accumulated profit increased from 31.3% to 36.6%, and reserves increased from 3.6% to 6.4%.
For three insurance companies, profit dominates their equity (INGO, Nairi Insurance, and Armenia Insurance), while for the remaining four insurance companies, the authorized capital holds a larger share.
LIGA Insurance maintains leadership in terms of equity capital and authorized capital. Importantly, this company's new strategy is supported by the new owners' serious intentions to further strengthen its position, including through the introduction of life insurance, which will become a strategic growth area in the coming years. Furthermore, LIGA Insurance is preparing to enter the small and medium-sized business insurance niche, which will be a new development in the market.
TOP 3 by Key Indicators: The top three by current assets are INGO, LIGA Insurance, and Nairi Insurance, with a combined market coverage of 62%.
In terms of current liabilities, INGO, Efes, and Nairi Insurance lead, with a combined coverage of over 62%.
In terms of insurance premiums, Nairi Insurance, Efes, and LIGA Insurance account for 49%.
In terms of reimbursements, Nairi Insurance, INGO, and LIGA Insurance represent a combined market share of 51%.
In terms of equity, the top three companies are LIGA Insurance, INGO, and Nairi Insurance, with a combined market share of over 59%. In terms of authorized capital, the top three companies are LIGA Insurance, REGO Insurance, and SIL Insurance, with a combined market share of nearly 55%.
The top three companies by accumulated profit are Nairi Insurance, LIGA Insurance, and INGO, with a combined market share of nearly 79%. In terms of net profit for the first half of 2026, Armenia Insurance, Nairi Insurance, and INGO lead, generating a combined market share of nearly 64%.
In terms of premium breakdown by class, the leading insurance companies are:
Nairi Insurance - for compulsory motor third-party liability insurance and cargo insurance; Efes - for health insurance, property insurance, and general liability insurance; LIGA Insurance - for financial damage insurance; INGO - for comprehensive insurance; Sil Insurance - for aviation insurance (including liability insurance) and guarantee insurance; REGO Insurance - for accident insurance; Armenia Insurance - for credit risk insurance and agricultural insurance.
According to ArmInfo analysts, the transition of insurance companies' financial reporting to a new format is increasingly obscuring more and more important indicators from the possibility of a detailed market analysis. It's worth noting that, unlike the previous reporting format, the new version lacks a unified approach to publishing financial statements, allowing insurance companies to selectively disclose certain balance sheet indicators. ArmInfo IC is therefore requesting insurance companies to provide important data missing from the new format, as it has become difficult for them to independently analyze the market situation.
It's worth noting that seven companies operate in the Armenian insurance market. Of the 20 existing insurance classes, 18 are active in Armenia, excluding railway liability insurance and legal and extrajudicial expenses insurance. Only Armenia Insurance is licensed for railway insurance. INGO and Armenia Insurance are licensed for the largest number of classes, with 16 licenses, and LIGA Insurance is licensed for 15.
