Aldagi insurance company ranks first in terms of net profits. According to Insurance Supervision Service, in 2017 Aldagi’s net profits made yup 16 457 056 GE, which is 80% in the sector’s total profits. GPI Holding ranks second with 6 713 074 GEL, and Ardi ranks third with 2 186 986 GEL.
The private sector representatives assert that there is unhealthy situation on the insurance market. Representatives of Unison insurance company assert that corresponding offices should explore the existing tendencies.
“In general, the insurance sector’s profits are very low, as compared to other industries. At the same time, net profits of total insurance sector is concentrated in one single company, which generates more than 80% of net profits and I think corresponding structures should pay attention to this factor to ensure healthy competition and insurance market development”, Vasil Akhrakhadze said.
The market leader Aldagi says there is unhealthy situation on the market. The company director Giorgi Baratashvil noted that, like all other insurance companies, Aldagi also wants to receive higher profits.
“As compared to the previous year, We had 21% upturn in profits. In 2016, Aldagi profits constituted 2/3 in total profits of the sector. In 2017. this ratio rose to 84%. This signifies we have reinsured risks correctly and the company is healthy in terms of finances.
In general, it is not good when so many companies operate on the market and the major stake goes to one company. This is not a good indicator for the market. If we want to have stable market, profits should increase”, Giorgi Baratashvili noted.
Association of Insurance Companies says that profitability of Aldagi has been mainly preconditioned by the fact the company does not sell heath insurance services, which is the most losing direction.
Devi Khechinashvili, head of the association board, says that the insurance sector profits are very low and the sector’s total profits in total revenues made up only 5% and this is a very low figure.