CASCADE INSURANCE BECOMES ONE OF LEADING COMPANIES IN ARMENIAN INSURANCE MARKET DURING THREE YEARS OF ITS OPERATION

Noyan Tapan
Dec 10 2007

YEREVAN, DECEMBER 10, NOYAN TAPAN. The authorized capital of Cascade
Insurance CJSC has grown by about 200 million drams in the fourth
quarter of 2007 and currently makes 618 million 640 thousand drams
(over 2 million USD), as a result of which the company occupies a
leading position among Armenia’s insurance companies. This step aimed
at replenishing the company’s authorized capital by shareholders of
Cascade Insurance bears evidence of the fact that the shareholders
have long-term programs, the director general of the company Garnik
Tonoyan stated at the December 10 press conference.

65% of shares of Cascade Insurance belong to Cascade Capital Holding
created by the Cafesjian Family Foundation, 35% – to the European
Bank for Reconstruction and Development (EBRD).

According to the executive director of Cascade Insurance Levon
Mamikonian, the total amount of insurance premiums collected by the
company in January-September 2007 made over 427 million drams (12.43%
of the total sum collected by 9 companies operating in the Armenian
insurance market), thanks to which Cascade Insurance occupied third
place in the market. The company has signed 1,145 insurance agreements,
paid compensation of 88.6 milion drams based on 1,724 claims (14.8%
of the total and second place).

Compensation sums of the greatest amount were paid in connection with
health and car insurance.

Cascade Insurance occupies first place by the amount of insurance
premiums collected by some types of insurance: particularly, the amount
of health insurance premiums makes up more than 45% of the total
amount of premiums collected in the Armenian insurance market. The
profit of Cascade Insurance amounted to over 23 million drams in
January-September 2007, whereas the company operated at a loss in
the previous two years, which was envisaged by the business program.

Speaking about the development prospects of the Armenian insurance
market, G. Tonoyan said that the management of Cascade Insurance
appreciates the reforms being implemented by the Central Bank
of Armenia in the insurance market. In his words, the proof of
the positive tendencies is that insurance companies having large
capitalization operate in the market. The director general of Cascade
Insurance did not rule out that in 2008, the number of insurance
companies operating in Armenia will decline again (in 2006, there
were 16 companies). In his opinion, it is also not ruled out that
some influential foreign insurance companies will start operating
in Armenia.