Economy, Business And Markets

Insurance Firms Report Losses

Insurance Firms Report Losses Insurance Firms Report Losses

The Insurance industry’s loss ratio stood at 63.8% during the fiscal year that ended on March 19, marking a year-on-year increase of about 5%.

Mellat Insurance Company, affiliated to Bank Mellat, recorded the highest loss ratio during the period at 104.35%. Novin Insurance, affiliated with Eghtesad Novin Bank, and Mihan Insurance come next with loss ratios of 81.83% and 80.74%, respectively, reported.

Loss ratio is the total loss paid by an insurance company in the form of claims. The losses are added to adjustment expenses and then divided by the total earned premiums.

Insurers paid a total 144.6 trillion rials ($4.18 billion) in indemnities, indicating a growth of 18.45% compared to a year ago.  Iran Insurance Company - the market leader and the sole state-owned firm-accounted for 44% of the claims paid.   

According to data, the insurance industry’s earnings from premiums totaled 226 trillion rials ($6.5 billion) during the said period, up by 6% from a year earlier.

 Iran Insurance Company accounted for 39.47% of the premium, indicating an annualized drop of 1.13%. Asia Insurance and Alborz Insurance trail by a big margin behind the state-owned giant, holding 10.15% and 7.56% of the market’s share, respectively.

Mihan Insurance and Arman Insurance experienced considerable decline in their earned premiums, losing 28.54% and 19.31% respectively. However, Bank Saderat’s affiliate, along with Sarmad Insurance, Razi Insurance, and Day Insurance managed to increase their revenues last year.

Insurers managed to sell more than 50 million policies during the period, up by 10.35 year-on-year. The report does not provide details about insurer’s performance categories but third-party vehicle policies and health policies normally account for a major part of the insurance portfolio.

About 24.8 million claims were made during the previous year, a significant growth of 31.3% compared to the year before with Iran Insurance accounting for 76.8% of the total claims.