BAKU, Azerbaijan, November 17
By Tamilla Mammadova – Trend:
Georgian P&C insurance business is a leading player in the local insurance market with a 28 percent market share in property and casualty insurance based on gross premiums as of June 30, 2020, Trend reports via the Georgia Capital PLC's (GCAP’s)
P&C also offers a variety of non-property and casualty products such as life insurance.
"GHG is the country’s largest private medical insurer, with a 26 percent market share based on 2Q2020 net insurance premiums. GHG offers a variety of medical insurance products primarily to Georgian corporate and state entities and also to retail clients. The medical insurance business plays a significant feeder role for GHG’s polyclinics, pharmacies, and hospitals. GCAP owns 100 percent in the insurance business as of September 30, 2020," reads GCAP’s recent report.
According to the report, P&C and medical insurance have a broadly equal share in total earned revenues, while P&C had a 72 percent share in total net profit in 3Q2020 (75 percent in 9M2020). Overall, the combined ratio remained stable at 86.7 percent in 9M2020 and was up 2.7 ppts year-on-year to 87.3 percent in 3Q2020. Net profit decreased by 28.6 percent year-on-year to 5.4 million lari ($1.6 million) in 3Q2020 and by 6.5 percent to 16.1 million lari ($4.9 million) in 9M2020, year-on-year.
As the report shows, the key points with P&C Insurance are 5 million lari ($1.5 million) dividends paid in 3Q2020 on the back of strong cash flow generation; 10.4 percent year-on-year decline in revenues in 3Q2020 (down 6.6 percent year-on-year in 9M2020), and rebounding trend in net premiums written from a portfolio through direct sales channels, up 3 percent year-on-year in 3Q2020 (down by 16 percent year-on-year in 2Q2020).
As for the Medical Insurance, the report shows that the loss ratio is down 6.3 ppts year-on-year to 73.9 percent in 9M2020, and the insurance renewal rate at 71 percent in 3Q2020 and 72.6 percent in 9M2019.
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