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.

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